Company highlights regulatory compliance milestones, operator transitions, and a strategic pivot toward precious metals for long-term growth
Key Highlights:
- Allied Energy Corp strengthened its financial and regulatory position by completing legacy well-plugging obligations and reducing long-term compliance risk.
- The Company is improving operational efficiency through operator transitions while advancing core oil & gas assets in Texas.
- Allied Energy Corp is strategically diversifying into precious metals, with the Silver Reef project emerging as a key growth opportunity for 2026.
Dallas, Texas, January 29, 2025 – PRISM MediaWire (Press Release Service – Press Release Distribution) – Allied Energy Corporation (OTC: AGYP) (the “Company”) today provided shareholders with an update on its past regulatory compliance efforts, current operational initiatives, and forward-looking strategy as the Company continues to reposition its asset base amid changing energy and commodity market conditions.
Looking Back: 2025 Focused on Regulatory Compliance and Risk Reduction
During 2025, Allied Energy Corp took decisive steps to address legacy regulatory obligations tied to its Texas oil assets. In compliance with directives issued by the Texas Railroad Commission (RRC), the Company completed the plugging of multiple wells:
Gilmore Lease: Two (2) wells plugged in 2025 per RRC directive
Green Lease: Three (3) wells plugged in 2025 per RRC directive
Management emphasized that the share dilution that occurred during 2025 was directly related to raising capital required to plug these wells and maintain regulatory compliance. These actions were necessary to eliminate ongoing liabilities, reduce enforcement risk, and preserve the Company’s ability to move forward with a strengthened balance sheet.
The Company anticipates that a limited amount of additional dilution may occur in Q1 2026 to fully cover remaining plugging and compliance-related costs, ensuring Allied can take advantage of opportunities that are under present review.
Industry trends in Texas continue to highlight the growing challenges facing low-flow and marginal oil wells as rising operating costs, regulatory requirements, and capital constraints make continued production increasingly uneconomic. Data from the Texas Railroad Commission (RRC) show that Texas has well over 100,000 inactive or low-producing wells, many of which generate insufficient cash flow to justify ongoing operations or future plugging liabilities. At the same time, the number of orphaned wells—those without a financially viable operator—has risen to more than 10,000 statewide, the highest level in nearly two decades, despite ongoing state and federal plugging programs. Plugging costs commonly range from tens of thousands of dollars per well, placing significant financial pressure on smaller operators. As a result, many companies are electing to proactively plug marginal wells rather than defer compliance and risk escalating regulatory exposure. Against this backdrop, Allied Energy Corp believes its decision to address legacy well obligations and meet RRC directives during 2025 positions the Company ahead of peers still carrying unresolved plugging liabilities, reducing long-term risk while improving strategic and operational flexibility.
Current Operations: Asset Execution and Operator Transitions
Allied continues to advance its core oil & Gas assets and operational restructuring:
The Company has completed an agreement in principle for Rio Operating LLC to become the contract operator for the Thiel Project, Washington County, TX
Upon final approval of the change of operator by the Texas Railroad Commission, Rio Operating will conduct a 72-hour flow test on the Thiel well as per regulations to establish a sustained flow rate for the gas. This number will be used to establish an allowable flow rate for the well.
Rio Operating has a verbal approval from the TRRC ( legal ) to become a contract operator for the Thiel project subject to filing a two signature P 4 along with a valid lease.
Additionally, Allied is actively evaluating a change of operator for the Prometheus well, with discussions ongoing. Further updates will be provided as developments occur.
Management also noted that base oil pricing dynamics are evolving, with many operators increasingly repurposing saltwater disposal wells to support current operations and manage long-term liabilities.
Looking Ahead: Strategic Pivot and Growth Opportunities
As oil prices continue to challenge the economics of small, low-flow wells, Allied is advancing opportunities with stronger long-term potential.
Silver Reef Project:
Silver Reef has moved to the forefront of Allied’s strategy as oil economics become increasingly prohibitive for smaller operators.
Current commodity pricing underscores the opportunity:
Spot Gold: close Jan. 21 , 2026, = $4,778.02 vs Jan. 21 , 2025, = $2,710.49 (per OZ)
Spot Silver: close Jan. 21, 2026 = $92.00 vs Jan. 21, 2025, = $30.58 (per OZ)
Allied has received and reviewed all available historical data related to Silver Reef, including anecdotal records, assay results, and updated technical information consistent with NI 43-101 standards
A site visit is anticipated in Q1, weather permitting, which represents the final outstanding diligence item
Based on the information reviewed to date, management is extremely encouraged by the project’s potential
The site visit will evaluate any potential rare earth opportunity on the property.
Following completion of the site visit, the Company anticipates moving toward a fully executed agreement.
Positioning for 2026 and Beyond
Allied Energy Corp believes that addressing regulatory liabilities head-on, transitioning operators to improve execution, and pivoting toward higher-value resource opportunities positions the Company for a stronger and more sustainable future. Management remains focused on disciplined capital allocation, regulatory compliance, and creating long-term shareholder value.
About AGYP:
Allied Energy Corp. is an energy development and production company acquiring oil & gas reserves in some of the most prolific hydrocarbon bearing regions of the United States. The Company specializes in the business of reworking & re-completing ‘existing’ oil & gas wells located in the thousands of mature oil & gas producing fields across the United States. The Company applies its knowledge, experience, and effective well-remediation technologies to achieve higher production volumes, longer well life, and more efficient recovery of the proven and available oil and gas reserves in the fields/projects in which it has acquired an ownership interest. The Company will utilize updated technologies such as hydraulic fracturing (“fracking”), drilling of lateral (“horizontal”) legs in productive zones, and utilizing new cased hole electric logging to locate bypassed pays, all to enhance daily rates and oil & gas recoveries. By acquiring interests in a growing number of selected projects in various regions, Allied Energy Corp. is diversifying its exposure and effectively minimizing risk as it pursues corporate growth, top line & bottom-line revenues to the benefit of all stakeholders. There are proven, recoverable reserves contained in the many aging oil & gas fields that have been bypassed by companies moving away from these fields in search of deeper, more plentiful, but more costly reserves. The Company plans to concentrate on bypassed oil and gas as there is less competition and, as mentioned above, the costs are considerably less. Additionally, the company will acquire interests in marginal wells that can be acquired at minimal cost, of which there are 420,000 wells in the U.S. Quoting Barry Russell, President of the Independent Petroleum Association of America (“IPAA”) – “With approximately 20 percent of American oil production and 10 percent of American natural gas production coming from marginal wells, they are America’s true strategic petroleum reserve.”
In addition to oil & gas, Allied is strategically diversifying into precious metals, providing shareholders exposure to multiple high-value resource sectors.
For more information about Allied Energy Corporation, visit: www.alliedengycorp.com.
Safe Harbor Statement:
This press release may contain certain forward-looking statements that are within the meaning of the Private Securities Litigation Reform Act of 1995. The Company has tried, whenever possible, to identify these forward-looking statements using words such as “anticipates,” “believes,” “estimates,” “expects,” “plans,” “intends,” “potential” and similar expressions. These statements reflect the Company’s current beliefs and are based upon information currently available to it. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company’s actual results, performance or achievements to differ materially from those expressed in or implied by such statements. The Company undertakes no obligation to update or advise in the event of any change, addition or alteration to the information catered in this Press Release, including such forward-looking statements.
Contact:
Allied Energy Corporation
Phone: 972-632-2393
Email: info@alliedengycorp.com
X: https://x.com/AlliedEnergyCo1
$AGYP News Release: https://t.co/tdMpMVpUh1
— Allied Energy Corporation (@AlliedEnergyCo1) January 29, 2026
Source: Allied Energy Corporation
