Allied Energy Corp (OTCMKTS:AGYP ) is focused on the acquisition and reworking of oil and natural gas properties located in the United States. The company generally acquires properties with proven reserves and then goes to work on the projects. It has been engaged in reworking plenty of such oil and natural gas fields in the United States throughout its existence.
Last week, Allied Energy announced that it reached the final agreement with Energy Management Resources LLC in relation to two oil wells. By way of the aforementioned agreement, Allied Energy has completed the acquisition of 80% in the two oil wells located in Northern Texas. The wells are known as Palo Pinto #1 and Palo Pinto #2.
However, in this regard, it is also necessary to note that considering Allied Energy’s land position in the region, this agreement will now allow the company to develop up to ten more wells in the Baylor Country region.
On the other hand, the Chief Executive Officer of the company George Montieth also spoke about the significance of the latest acquisition. Montieth stated that the acquisition of the Palo Pinto properties and the appointment of a new Oil Operations Manager at Allied Energy are going to be the main factors behind the company achieving real oil production.
Montieth actually specified that real oil production is going to commence in a few weeks. He went on to state that Allied Energy is looking to ensure that a range of oil well at different locations produces oil on a daily basis. More such wells are expected to go into production throughout the course of 2021.
On the other hand, the CEO also pointed out that there are two important factors that have worked in favor of Allied Energy. One of those is the availability of strategic funding for key acquisitions and the other one is the rising price of oil. The latter factor makes it lucrative for Allied to re-complete oil wells that had been active in the past.
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