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what are ya'll missing? They are printing money in oil and gas all throughout TX and OK. From the big people I talk to they could make even more if they had more rigs.
CHK is buying everything everywhere, royalties are flowing. So why has management not leased out some of the land to those that know what they are doing and have the money and expertise.
Bitters, if he were in it to make money, could make millions off the stock by collecting royalties.
He has all the land but apparently his arrogance is too much too overcome. He is the Peter Principle exemplified. Defending him is defending the indefensible.
Can someone show me another company in the Shale that is down 80 percent?
How bad is Charles Bitters?
http://www.cnn.com/2008/LIVING/wayoflife/08/20/urban.drilling/index.html
Even those that aren't in the business are getting rich off of the Shale.
Why do I get the feeling that the old man is hiding something?
The end game is near.
Mr. Bitters took control of the company with the reverse split. However, he screwed up in one way. He is nowhere right now, nor will he ever be unless he generates revenue. I will be interested in seeing if he is selling any stock to generate revenue but the major problem is he has no way to pay himself without drilling. That makes the stock price priority number one. No hedge fund will do a convertible, because the value of the company is too low. He'll never raise money in a secondary, so he is stuck. He could go to a bank but he has no track record.
He must drill and he must be successful or he sits on a pile of shares that will never make him a dime. He has backed himself into a hole and he is dead to rights without a successful drilling program. Now the land will just revert back to his brother, and he could sell the land and make money that way, but wil CB benefit? That is the multi-million dollar question.
Sometimes even stupid people get lucky.
Chesapeake Energy Corp. on Monday said agreed to acquire approximately 2,000 net undeveloped leasehold acres in the Barnett Shale area in Tarrant County, Texas, from Western Production Company and a partner. Terms of the deal were not disclosed
Not sure why this is a party. The sad fact is so many were duped into splitting this due to default which obviously didn't happen as the note was miraculously rolled over.
The price of gas isn't helping but then again neither is management's reluctance to prove they have any idea what they are doing at the moment.
Hard to believe the price of this company. Eight million dollars is a slap in the face to shareholders.
Moral Hazard
Does anyone here understand how inappropriate this entire company's financial situation is at the moment?
The CEO and his brother have put the company in debt, that would be acceptable if the loans were not from them. As it stands, in a liquidation, bondholders get paid first. Therefore, if AMEP were to declare bankruptcy, the two brothers would own the company while stockholders get nothing.
The moral hazard in this situation is the CEO holds the debt over the shareholders' heads, threatening them with default if he doesn't get what he wants which is 30% of the company.
And to think there are some here that think a CEO putting his money into the company is a good idea shows how incredibly naive investors are and continue to be.
LOL?
Really, you think a CEO loaning personal funds to a company is a good idea? That puts the CEO's interests ahead of shareholders does it not?
Has anyone seen the loan documentation?
So who asked the CEO and his brother to loan the company money? I'd like to see the documentation on that personally.
I like the action in the area na dthe threat of higher gas prices is certainly a bonus but voting for it based on a CEO's apparent loan to the company is not smart business. Is this his own company?
Leases are productive, giving the store away is not. This increase makes the R/S even more odd.
No vote cast today.
You all do not want this split as is to pass.
There are better ways to raise capital. Not to mention that I don't like people telling me how things are going to be when they benefit and I don't.
Passing this split and those that vote in favor wil assure their place in socity as cowards. Those that live life in fear deserve what they get.
Still no Nash update from the company.
Surprising. Hope he doesn't wait until after he gets his money that would look very, very bad.
At least I own shares and while it may have been a tough decision sir, asI clearly stated, he left out that the CEO will effectively get a one time windfall far in excess of anything I have ever seen for a company like this.
Our 50M friends vote no.
Bottom in the stock happens today, for now.
If it gets lower, I really want this company.
Odd, not a single mention that Mr. CB will recieve a windfall payment in shares and have complete control of the company.
Sounds like someone has sold out. That's too bad. No one in good conscience can vote yes for this.
Our 50M friends will vote no.
Forgot to mention that I am buying down here. Another .5 million. How I would love to have this company.
This is where loose friendships get tested.
Mr. CB has a few large shareholders on his side. Their net worths are falling fast and Mr. CB is under a lot of pressure to keep those friends close. What wins the day, belief in the man or a very light wallet?
That has been my concern all along. Mr. Bitters doesn't think big enough. With what he has found he needs to change that attitude or he gets swallowed.
What is best for shareholders is a rising stock price regardless of the person at the helm.
I'm a bit surprised more people aren't taking the Sanders issue more seriously. If his organization were to launch a bid and received 30 to 40 percent of the company, could he then convince the remaining shareholders needed for a majority to effectively replace management. This does not happen often but this is a very attractive asset.
What Mr. Bitters can do is start a dialogue with Mr. Sanders, that would be a start.
I am attempting contact with Mr Sanders to see where his interests lie. One thing I do know is if he is involved as I see from the various comments, he wants to buy the company.
There are a few things that can happen but one thing he may do is offer a bid and see how many shares are tendered. If he can get a big enough percentage he can then offer to replace the board. From there he can insert himself as CEO. That would be an awful blow to Mr. Bitters and the family but right now he looks defenseless.
The Sanders family carries a lot of weight in the Shale. I would not dismiss him.
Well, I'll be
Chris Sanders is involved. Not surprised as the word was going to leak at some point. I think he will bid for the company.
I believe many here know what they own, some may not but this company will produce revenues in the 10's of millions when this is over on an annualized basis. That will more than cover the cost of a buyout.
If he were to off seven cents he would get it more than likely. He has deeeeeeeep pockets all around.
Y'all better be buying this stock.
I'm seeing a lot of really dumb analysis here.
Are all of you so sure that this is the death knell for the company? Some of you seem very certain of yourselves.
So what happens when the split is voted down, where will all of your doom and gloom be then?
I just saw a small biotech give away the store in a split to raisemoney. the stock did nothing because those that are long must have a better idea of what they own.
Once the Padgetts are both brought on line we will have revenue in the millions. Bassed on what many of you believe we will be trading below revenue. I've never seen that before but apparently many of you have.
How big of a group do you all have?
If your group is big enough then Mr. Bitters may have some issues. As one poster stated, a new slate on the board would be most interesting. Remember, it is the Board that has the right to hire and fire management. It is not a difficult process.
Once a new board is in place, if Bitters were to be removed, I can imagine there would be a few hundred people interested in running a small oil and gas company with immense potential.
I see Pseeker, that we have no wager, that is too bad as I could always use a few extra thousand.
1,000,000 shares bid for at 3.9 cents?
Put us in the black?
Are you kidding? It is one thing to have a company go to black, it is entirely another matter to have a company go SIGNIFICANTLY in the black with assets that supercede the value of the company by multiples. In the black? We could sell the 11 and 12 for the entire value of the company and the people in charge know that.
In a very selfish sort of way, I wish the split would go thru and bashers like Pseeker would get everyone to panic, that way we could get a controlling stake in this company.
The assets, the wells, the rigs. With small debt we could turn this company into a company that could generate tens of millions.
One can dream.
The reverse split will fail. What do you all propose to do then?
Based on the money coming from the two Padgett wells over the next 12 months, the stock price at this level makes the company look very, very cheap.
Do you all propose to get management to amend the filing to make it more shareholder friendly?
As it stands now, the company knows full well they have lost this battle. The question is what comes next.
Wrong?
I was wrong on the timing but not the well.
What say you peashooter. Place your bet.
I say 350 is at a minimum. This well will double that output.
You say below 350.
What's the wager?
Pseeker...what's your bet that the Padgett #11 far exceeds 350?
You say that the number will be significantly less,what say we wager who is more accurate.I'll bet the numbers exceed 350. You say significantly less.
You could not be more wrong.
While everyone frets
what happens if there are some adjustments made. Are y'all watching the price of Texas Tea?
Are y'all paying attention to what is happening in energy? Does anyone believe that Bitters walks away from this baby?
Don't think so. A couple of tweaks here and we might just have a very big winner.
Undervalued?
The Padgett lease with two wells doing net income of 4M and I am conservative, would see bids in the thirty million range, in my opinion.
That is with just two wells. Now ask yourself why they aren't drilling more on the Padgett but instead are going after the Nash again. Just think what they must know.
Mr. Green
Obviously some here know a little more than they let on.
My numbers are conservative. Your numbers will be as well.
That is all I will say.
Dart
I do not know because the High is an unknown. All I will say is that should management hit the area and it is consistent with other highs then you have a stock worth hundreds of millions.
As it stands, the Padgett is the company.The High makes them a player!
If the High hits I cannot give projections for it because I have no idea how many wells we will put there.
All of my Padgett estimates are going to need revisions upwards.
I also see based on another posters charts that oil and gas are potentially headed much higher.
So I can state with some certainty that our net should be in the four million range with natural gas in the high single-digits for 2008. That is if management does nothing with the formation they were permitted for recently.
Mr. Tharmon that sure sounds like the man I know. Bare bones operations until the money flows which is starting now.
The money Bitters wants is for the Nash permit. That is what is going on here people. Admittedly, they have not been very forthcoming about what they have in that formation with the SEC hanging over them and all.
So let me tell you that the reason why they are leaving the Padgett after drilling two wells that will put them soldily in the black this year is the formation they have in their Nash permit.
I believe the man wants to put in several wells there and when they hit there willnever be any talk of dilution,ever again.
They have a few options to raise capital in the form of investors in the wells but in the past little while, no one has come forth. Investors in wells make money before shareholders much like debt holders in a liquidation.
It will only take a few million and 2007 could turn into a gusher.
I wish everyone well here.
LTG-very good post. Whether we trade six cents this week I cannot say but the plan for the company is well thought out.
The Padgetts are going to produce income close to three million if the company delivers as we expect.
The most recent permit will make the Padgetts look like a waste of time.
The company should/will move to the American Stock Exchange. When shareholders are informed of what is happening in a little more detail then you will see attitudes change. Communication will get better.
Off for now, be back at a later date. Production has arrived.
Well, well. Look at the commotion. Slippery Wing. You say that no one knows what the production will be. No one knows whether the "sun will come up tomorrow" but I can state with near 100% certainty that there are people here that do know what the production will be based on estimates that are as reliable as anyone can get in this type of business.
We have a multi-year plan with American Energy and the newest permit will make the Padgett look like a waste of time if the "neighbors" numbers are running through the latest permitted area.
AMEP will have revenues from June 2007 to June 2008 in excess of 7 million dollars. That is what we are projecting. Stock splits, reverse splits, the splits may mean everything to those here but you will see the folly in that this time next year.
Good luck everyone.