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I am all for a full court press, but let see how this ties into Nelderand activities.
This smells of dot.com ethics. I got screwed once and I saw first hand how preferred, arrogance and greed work hand in hand.
I am still blown away by how CB is the only one that doesn't take massive dilution and how he end runs everyone for 30% of the company.
CB has the most to lose by a long shot, if he loses.
In your conversation with CB he said that the SEC approved the PRE14, without revisions. Then why have they not distributed the formalized version of the shareholders meeting notice, as of yet?
Why don't they just put Padgett #11, Padgett #12 and the reworked Murphy-Nash #1 into production? I'll be you those numbers will blow people away.
These people need to focus and execute and quit worrying about the NASDAQ.
Pretty big dilution because he wants to be a "Player" and we sit at $.038 PPS. That's ridiculous.
Let me state up front, that the 1:25 R/S, coupled with the Preferred series dilution, is insane. I don't care what they have to say, my vote is no. This R/S, with the Preferred series dilution, is very, very expensive money.
I think that there is a much stronger wave of shareholder resentment against this proposed action then the wave of support that was in favor of the BDC issue. I hope management doesn't underestimate its strength.
Having said this, I hope stronger/smarter heads prevail and a resolution is investigated and reached before AMEP puts out any definitive shareholders notice based on what we have seen. This could be a big win for everyone now, but if we drag this out, everyone loses. If we go to a vote and they lose, they gets what they deserve.
The shareholders who have invested in AMEP have every bit the right to participate in AMEP success as anyone else. If CB sold tickets/shares to his party, to fund the party, we are entitled to go to the party and get a full piece of cake. I waited over 20 months for AMEP to announce a new well with production numbers, which they finally did, on June 11th. And let us not forget that most of that time was in silence.
It has been a difficult ride for everyone, but why do we get asked to get off the bus when the party starts?
I hope everyone has a great 4th of July.
I see no common ground here, especially when you see where CB is starting from. He is the CEO/BODs.
CB deserves his 30% ownership and we, the shareholders, deserve to be diluted 30% to give it to him. Remember that is on top of the 1:25 R/S.
We have been treated with such respect, that I feel obligated to grant him his wish. Not likely.
I've said this before, this plan is all about CB's ownership, the R/S is just the vehicle.
There is a real arrogance and ignorance here. When you couple this with CB EGO, you have the ingredient for a confrontational situation.
Since CB deserves 100%, we should all turn in our shares for his benefit.
I agree with you 100%.
Nelderand, your thoughtful insight, organization and actions are appreciated. We can only wait until such time as management steps up to the plate to show their hand. I would again recommend that everyone contact CB with their thoughts, as well.
I was involved in the high technology era, some would call, the dot.com era. Boy were there a lot of snakes slithering around then. EGO and GREED can color ones vision. One of the attributes that caught my eye on AMEP was all this talk of one mans honesty and integrity. We all know many penny stocks are a crap shoot, but the story on AMEP was different, but now....
We do not know the total story, as of yet, so we have to give CB/AMEP the benefit of the doubt, but if this plays out anywhere near to what we are seeing, be prepared to fight. Their continued silence only peaks my interest more. What are their motives? This stock fall is not the shareholders faults, it is AMEP. Buying in this stock has dried up for sometime.
It appears we have a very strong group in numbers, although loosely coupled. Look what we did for the BDC vote. That would have never passed without our efforts. AMEP, let me say that again, you would still be a BDC company, if it were not for the shareholders of this and other boards.
If they attempt to fly this DEF 14A filing in a shareholders vote, as is, we vote it down.
I have heard rumors that some people think the investors are dummies. If I were them, I would not underestimate the sophistication of many of the shareholders in AMEP.
No, my son, you are dead wrong. High risk before, yes, but not what we know operationally now.
Before we knew Padgett #11 production number ($1.2 million annually), that Padgett #12 H was drilled and completed and that Murphy-Nash #1 was being re-drilled to test the Mississippi high formation, we were in high risk mode. We have passed that hurdle. We all anticipated great things because of the richness of O & G found in the Padgett and Murphy-Nash leases, amongst other assets of the company.
CB/management put this back into high risk mode with this proposed R/S, Preferred shares backdoor action and subsequent silence.
Are you kidding me. Here I wait two years for a ray of hope which we got June 11th, only to be erased by the June 8th DEF 14A filing showing a R/S 1:25 followed up with 30% dilution on top of that for CB.
This company is way undervalued and the responsiblity lies right in CB hands.
If you didn't look, you can buy at this moment for $.039.
AMEP, wake up, cause the cat is out of the bag.
On June 11th you announced Padgett #11 numbers, indicated the both Padgett #11 & #12 H were completely drilled and that AMEP was commencing the Mississippi formation test on Murphy-Nash (MN) #1.
Couple this with the pictures we have on the MN #1.
With these two properties alone, the investment would make sense for someone to take a look.
You need to start announcing things, one after another, so that anyone would have to take a big gulp before they tried to swallow you.
The peek-a-boo game is over.
What CB better not do is present the shareholders with the 1:25 R/S, with his Preferred shares not participating in the R/S, as outlined in the DEF 14A filing.
This very well will be voted down and if there are people smelling around, he will lose big time.
CB in analyzing his options, he must always measure the risk of making the wrong decision. Can he live with the outcome if he is wrong?
This is not his company. This is the shareholders company.
The smartest thing CB could do is to sit down with Nelderand, who is representing us, and put together a winning hand, that would allow us to blow this thing wide open.
This is all about CB's ownership! He want to set himself up before he exposes AMEP's true value, which will trigger the next run. The lower the PPS justifies a higher R/S multiple to get to a new exchange.
What I find interesting is that he had no problem issuing 500 million shares for investors/cash or assets, such as leases or equipment, to build AMEP. Now he saying, this needs to be valued 30% lower, since he wants more ownership with his Preferred rights.
Why didn't he set himself up before so we had a fully picture of what we were investing in? Maybe one would not have invested as much, had we known, what we know now.
It is amazing to me to see AMEP trading in the $.03's today, putting a valuation of less than $20 million on the company. AMEP's revenues historically have been around $1.2 million annually, yet now they are bringing on line 3 wells that could push the revenues up to $10 million annually. How does this compute?
All I can say is that CB better get his act together, quit playing games, or he could lose his/our shirt(s).
Excellent post. I agree completely.
What blows me away is how management is making no effort to get the valuation up. This is not "increase shareholders value," but rather "manipulate shareholders value", for his benefit/plan.
AMEP is a HR, even considering what CB is attempting to do. With the real/explosive value in the Padgett and Murphy-Nash leases, we sit in silence with this R/S and Preferred issue hang over our heads. The DEF was filed June 8th and July is Sunday. What's up with Padgett #12H?
Not very bright. They should be executing offensively and market what they have, rather than defensively, because they fail to execute.
And CB should be rewarded 262,500 common shares for this? You do not reward people for poor execution.
And oil passes $70 per barrel. WOW!
You and your other basher friends sense the tsunami coming. Your about to get smoked.
No pumping, just waiting for the follow on news from Padgett #11, the initial announcement for Padgett #12 H, which is already drilled and waiting to be turned on, and finally, the results of the Murphy-Nash #1 test for the Mississippi formation. All stated facts by the company.
All short term real deals my son. The initial announced production results for the Padgett #11 vertical, are $1.2 million. Not a bad start, wouldn't you say? Compare that one well with previous revenues for AMEP of around $1.5 million annually for 200 wells.
Not to hide any issues, we are waiting on the resolution of the R/S proposal the shareholders are pursuing. Whatever the outcome, even worst case, the value is in the Padgett and Murphy-Nash full potential revenues and reserves.
Lets get back to the facts. That is something the basher do not want in light of the SEC filing. That is what makes this not a $.03/.04 PPS.
MM trying to hold this back, with bid/ask games. Can't do it. Buying pressure building with anticipation, Padgett #12 and Murphy-Nash #1 results, going against little sell volume.
For those that sold, better get back in.
You are right on. The gold/value is in the leases that AMEP owns and that we are now showing with Padgett #11, for example. Here is an explosive question, what are the Oil & Gas reserves for the Barnett Shale properties we own? That would be a number I would like to know.
No matter what happen with this R/S, even worst case, the value in this company is much, much higher than it is trading.
How many acres is each formation?
GEH, let look at the positive side/prospect of things. Given that we know that the Padgett #11 was announced with an O & G rate of $1.2 million per year, I have 2 questions.
1) What is the potential revenue ranges (high/low) for the Padgett #11, Padgett #12 H, and the Murphy-Nash #1? Lets assume they hit the Mississippi formation on Murphy-Nash #1.
2) How many new wells could be drilled on the Padgett and on the Murphy-Nash leases?
Thanks
I am with you 100%. Let's go in with a positive attitude, expecting resolution.
If they choice too ignore or reject our concerns/proposal, then we take the next step.
In this game, all that counts is the numbers/vote.
The BOD of 3 is hand picked by CB, so they do what he says. For someone that says, lets wait for the plan, the only thing I want to know is, is the Preferred stock outside the R/S. We are now seeing it is. This is all about CB sneaking up to take 30% of the company.
Can you believe how significantly the multiple of the R/S leverage CB shares?
If he does a 1:25 R/S, common stock shareholders get around 20 million shares and his 10.8 share on top of this represents 30% of the company.
If we do a R/S of 1:10, the common stock shareholders get 50 million shares and his 10.8 shares would represent 16.6% of the company.
If we do a R/S of 5, the common stock shareholders get 100 million shares and his 10.8 shares would represent 9.7% of the company.
Hell, if he did 1:50, he could get 51% interest. What is holding him back? All the family will vote for it. Keep it in the family.
Trust me this R/S is all about CB shares, diluting the shareholders and taking control.
He issues all these shares to create value for AMEP and now he goes around the pack by using the R/S to gain ownership at our expense.
I believe you could make a case, that they have been keeping the price down or holding back just for this purpose.
He needs a big R/S number, like 25, to get the multiples to get to 30%. If we were selling at, lets say $.15, that wuold put us way over the $3.00 strike price.
Let tell you this, they just did not think this up.
If CB doesn't have enough ownership, as part of the new stock issuance, give him some more options. 30% is BS, way out of line.
This is not honesty. If I knew I was investing in a company that had the equivalent of 750 (500+250) million shares issues, considering CB 30% proposed ownership, I might have done things differently.
That is a little rich if you ask me.
CB deserves more interest, but 30% is robbery.
I will tell you something else, that is why the R/S multiple is so key, 1:25 gives him 30% control, 1:10 gives him 16.6% and so on.
This deal is all about CB.
This R/S is first being set up for CB to control the company. The other issues are absolutely secondary. Talk about getting taken to the cleaners.
You better read jpaul93141 message on the Yahoo board. He had a discussion with JC and he said the CB shares are not R/S. That gives him 1/3 the company on top of the outstanding shares.
That is what this R/S is all about. If that is true that is BS.
NO way.
A great reply. We need a little humor at time like this.
Hey Fishy, how are your kidding, lower the share price. I think that has been taken care of.
My concern is, whatever is presented, that it gets enough votes to pass.
There is clearly not the level of support on this, at least yet, that there was on BDC issue.
GEH, did you talk strait to him about investor sediment? Not happy. Does he know that if he comes out with the original proposal that it might not pass? I mean 500 million shares authorized, Preferred Stock clarification, plan etc....
Sometime we want the moon, but... Maybe this needs to be a package of stock/capital and bank financing.
With the producers we have now, what about bank financing? I know of his experience with bank loans, but this isn't the 80's. His proposal could be expensive money. Maybe we have an interim step in the financing to get to what he wants.
Regarding the Preferred, I have been involved in Venture Capital financing in the past. Preferred is the way to protect yourself, establish covenants, like his 2 Director seats, and to get leverage. What are his covenants with respect to splits, either way? I have seen Common Stock holders taken to the cleaners before. It does happen. That has to be clear.
We waited two years for Monday's announcement, with little to no communications, and it was preempted by Friday's release. You can understand why people are upset/concerned. This is what happens when you don't communicate.
I hope something good passes and we move on, but he better package something that sells.
I understand your concern, but it does not matter. If he buy presplit stock, at lets say $.045, their stock is R/S just like ours when it takes effect.
If the transaction is post R/S, like it probably would be, they get the number of shares devided by the new price, lets say $1.00.
Either way it is about 18 of the company for $5 million, as I figure.
The Authorized share issue has not effect on this.
Excellent message from Slipperywing on the Yahoo board.
I am no banker, but if this is true, management must start to use all forms of financing, especially considering Padgetts #11 & #12, not just dilution/issuing shares. It great to go the easy way, but with solid dependable wells, some loans may be appropriate.
Re: The day was salvaged, but....(Sabre, opinons?)
Boy, you guys have a thing or two to learn about financing in the oil
and gas industry.
Banks lend based on net cash flow, not "lease values or drilling rigs".
Right now, banks are lending at about 40 to 50 months net cash flow.
So if you're net cash flow is $100,000 per month, they'll lend you $4
million for drilling additional wells.
Effectively, Bitters could go to just about any bank in Oklahoma, or
Texas for that matter (although I am not as familiar with banks in
Texas), show them his current production and balance sheet, and could
walk out with a line of credit around $5 million, easy.
Some are claiming that interest rates are making bank debt less and
less attractive.
Why do you care about interest rates when you're looking at an 8 month
payout! Give me a break!
I'd take a $5 million note at 10% when I know I can pay out in less
than a year AND have an increase in cash flow of $100,000+ per month
after the bank has their money...
R-J, just come on board? New basher? Your consistent tone is not negative, but a typical basher. Your too obvious. You need to go back to basher school. You must have missed the covert class.
Let me respond to the clown who is throwing the word dissolve around. That BS. Lets state the facts.
The company has been doing about $1.5 million in revenue with a slight loss.
Just Monday, AMEP brought on Padgett #11 which has projected revenues of over $1 million annually, probably much higher.
In just days, AMEP will be bringing on Padgett #12 H, which should be in the range of $2-3 million, since it is a horizontal.
After that, the reworked Murphy-Nash #1, which could be bigger than both of the above, will come on line.
So tell me how do you figure, if I just blew away my annually revenues, going from like $1.5 to $4/5 million, not considering the MN #1, do you have to dissolve the company?
Quit playing with words.
I agree with you completely. Nuts.
It will be great to hear a modified plan ASAP.
Regarding the Preferred Stock issue, that is a show stopper, if he doesn't take the same hair cut as everyone else. My goodness, that is like giving him 250 million common shares, without the R/S, or 30% of the company. That's nuts. He has had all this time to accumulate shares.
Maybe I agree with you, he should have more shares. As part of the proposal, have options available to him as part of the proposal.
The cat is out of the bag. Keep the PRs flowing, do damage control by disclosing the plan ASAP and modifing the filing.
You're right on that and no one else does as we touch $.045s.
Thanks for your comments with Joe. Let me say a few things:
1) Joe says the value of AMEP is around $20 million, NOT counting the leases. The leases are the value. All 7000 acres are in the Barnett Shale area and we thing we have some big ones with the Padgett and the Murphy-Nash leases. The upper value of the leases sold this past in year the Barnett Shale were in the ball park of $16-17k. That is around $120 million. Add $120 + $20= $140/500 shares outstanding. What do you get, $.28 PPS which is reasonable and we sit at $.05. Another question is, does this count the $68 million dollars in oil reserves on PRI? That is a reasonable price for what we know today. Now lets look at the new production.
2) We just hit our first big well Padgett #11, with estimates initially around $1 million per year. As it was stated in the release, these estimate will go up once stabilized. Could it be $1.5 - $2 million? Any day, Padgett #12 H will be released. Estimates for a horizontal are in the range of 3-5X a vertical, I believe, so lets say $2-4 million range.
3) From my understanding, the biggest one yet to come is the discovery of the Mississippi formation on reworking the Murphy-Nash #1 which is permitted and approved. Estimates for drilling, once it starts, is a few days. We are re-drilling this well because 3d seismic report indicates that this formation exists. Would that be huge? Much bigger than the Padgetts and only days/weeks away.
All this is at our fingertips and we sit at $.05. Lets face it, since December 5th, when we were at $.0267, the longs have carried this thing buying the shares based on the story I just told. Not a lot of new money, just look at the volume. This was because the company did not market AMEP or communicate to the world the story. Lets face it, if it were not for GEH, Contractor, CTB, GoldRunner, Sab, and a few others ... we would be in the DARK. We would know very little.
I'm confused. No one pushed the R/S before as the save all? The guys pushing it now are the ones projecting the big numbers while we sat on the BB. I agree they need operational leeway, but they need to start marketing AMEP big time. CB is a great oil man, but can he market, communicate?
Here is another question, Joe is supposed to be the financial guy raising money through drilling partnerships. If the Barnett Shale is the hottest area is America and if CB is the drilling king, has he not done his job?