Tuesday, Allied Energy Corporation (AGYP), released a tweet:

“$AGYP, rework activities have been delayed over the last several weeks due to very intense rains in North Central Texas. Allied’s team is committed to making up for lost time by working several well sites in parallel as favorable weather is moving into the area.”

That’s good news considering the near term forecast is clear of precipitation..  

It coincides with the stock being at a great entry level, testing and maintaining its support at 25 cents for several sessions now.  

About AGYP:

AGYP “is committed to the sourcing and supplying of petroleum resources to the market by exploiting existing shut-in wells that are deemed to hold good potential to be productive again at 10 – 50 barrels per day.

Allied’s team believes that there is a vast untapped resource waiting to be brought back on stream using the latest technology in electric logs to identify productive formations that were missed 25 – 30 years ago.

New down hole drilling and completion techniques will allow Allied to maximize production from these old shut-in wells and in turn enhance return on investment dollars.”

In other words, AGYP focuses on reworking shallow wells. Shallow wells, defined as any oil well drilled to a depth of 10,000 feet or less, while most expect shallow wells to dry up sooner than deeper ones, this isn’t always the case. Some shallow wells last 50 years or more.

Shallow oil wells are less expensive to drill, maintain and produce from. They also tend to come with fewer complications at every stage — pooling is easier and less costly, permits are cheaper and easier to get and equipment is easier to maintain and replace. In total, the oil well drilling cost breakdown comes out in favor of shallow wells. One drilling specialist estimated that the average cost for a shallow well was around $200,000, while a deep well’s cost totaled in the millions. This is especially true when comparing shallow oil wells to offshore platforms, which require even more money annually to maintain. The key to keeping costs low, however, is ensuring that the shallow well meets local regulations in order to avoid fines and litigation costs.

So the cool thing is, while Joe six-pack is certainly okay with this, the Rachel Maddow’s of the world will save their cancel-culture for the less responsible explorers.

AGYP’s current projects include 

Byers Heirs #2 Deu Pree Field, Wood County

A well originally completed in the Woodbine formation from perforations of 5736′ – 80′ making 74 bbls per day of 16 deg gravity “heavy” oil and accumulating 78,000 bbls of oil. When abandoned in 1997 the well was capable of making 60 bbls of oil per day but at the time there was no market for heavy oil and the price per bbl was discounted considerably due to the low gravity. Today there is a large demand for this type of crude oil and it can receive a significant bonus over the posted price of West Texas Intermediate.

Byers #1, Deu Pree Field, Wood County

A well that is an offset to the #2 well and was completed in the Woodbine formation. It had an initial rate of 122 bbls of oil per day and accumulated 120,000 barrels of oil.

Cameron #1, Deu Pree Field, Wood County

A well that was drilled south of the two Byers wells. The well was completed in the SubClarksville formation as it was not drilled to a depth sufficient to evaluate the Woodbine formation. The initial rate was 91 bbls of oil per day and accumulated 30,000 bbls of oil.

On top of the current projects they’ve just released news of the leasing of five additional wells at the 300 Acre Annie Gilmer Lease.  

The Annie Gilmer lease is located in Crystal Falls, Texas. There were six wells drilled on the lease starting in the mid 70’s with the last being drilled in 1989. Since the initial well, the lease has produced over five hundred thousand (500,000) barrels of high gravity oil and over five hundred million (500,000,000) cubic feet of very rich natural gas. There are two permitted saltwater injection wells on the lease. One of the injection wells will be re-converted to an active oil and gas producer.