American Energy Production Inc(fka AENP)

[RedShoulder]

jagman, we agree! Those 'full version' 10-Qs, 10-Ks, etc, filed with the SEC and available on 'Edgar on line', the HTML full versions are free:

http://yahoo.brand.edgar-online.com/fetchFilingFrameset.aspx?dcn=0001108017-05-000701&Type=HTML

The recent 10s should be read by all investors, and potential investors. Note the lack of debt, and the minor loss last several Qs. The minor net loss in the last 10Q of only $149, 018 is very note worthy, especially considering it is 'before' the 'two drilling rigs' start bringing in the future NG & Oil production wells this year. Note the lack of debt on all those proven leases held by the revenues from the upper Strawn Sands, along with the Bend Conglomerate, Marble Falls Lime, and Barnett Shale formatins below, without the need for leases renewal.

Also note the lack of debt on the drilling rigs, workover rigs, pump jacks, storage tanks, NG compressors, NG collection NG lines, and 50% ownership in a NG Sales Line that they have a say on who gets hooked up (ie AMEP/Bend Arch Petroleum).

Also note the last current O/S Outstanding Share count in the quarterly report:

"The number of shares outstanding of the Company's common stock outstanding on November 16, 2005: 334,276,386."

It is interesting to note that bashers projected a much higher O/S figure for the last Q after AMEP bought the Ideco H-40 Phantom 1 drilling rig ...didn't happen. The bashers are at it again claiming a near 500 million share count will show, now that AMEP has bought another drilling rig, the Challenger 360 ...and they will be wrong again ...by a mile.

Also note that the cash flow revenue from AMEP's wholly owned investees is paying nearly all the 'Operating Expenses' less only $64,000, ...again this is before both of AMEP's owned drilling rigs start bringing in the big revenues with each new production wells, some will be high production horizontals in the prolific Barnett Shale, and likely will bringing in mega bucks on each new well:

Loss from Operations (64,848)(124,002)(249,242)(1,160,502) last 4Qs ... see a positive trend, my friend?

Net Loss (149,018)(1,207,033 )(810,264)(5,210,544)
last 4Q ... I think I see another bullish trend.

I am looking forward to the 10-K due out any day now.

One good well and AMEP will be profitable. Just one good well.
Yet note the following bullish information: AMEP can drill +40 high production Horizontal Barnett Shale wells on it's current leases, with a generous 160 acre spacing, likely yeilding very good gas pressure at 160 acre spacing, even though the TRRC allows more wells per acre. The Barnett formation averages about a 150-200' thickness on the leases. AMEP can drill +40 horizontal wells in the Marble Falls Lime, and it averages a thickness of about 200-250'. AMEP can also drill 116 shallow formation wells, with a 60 acre spacing, most of these will be either/or both the Strawn Sands formation, Caddo Lime, Atoka Bend, Duffer lime, or one of the many Conglomerate formation, all of these are already in production or 'proven' on the various leases. AMEP's leases are in the Fort Worth Basin, which has 11 proven production zones of NG and high grade Oil, or commonly both. See DD AMEP #4 for details:

http://home.cogeco.ca/~ljausten/greeneyedhawk1-DDno4.html

Note this which applies to AMEP's 7,000 acres in the prolific Barnett Shale formation, AMEP is 100 percent covered by the Barnett. AMEP is in the Ft Worth Basin, which includes these formations:

http://www.searchanddiscovery.com/documents/pollastro/index.htm

"The Barnett Shale was deposited over the resulting unconformity. Provenance of the terrigenous material that constitutes the Barnett Shale was from Ouchita thrust sheets and the reactivation of older structures such as the Muenster Arch. Clastic rocks of similar provenance dominate the Pennsylvanian part of the stratigraphic section in the Bend Arch-Forth Worth Basin. With progressive subsidence of the basin during the Pennsylvanian, the western basin hinge line and carbonate shelf, represented by carbonate rocks of the Comyn, Marble Falls, Big Saline, and Caddo Formations, continued to migrate westward. Deposition of the thick basinal clastic rocks of the Atoka, Strawn, and Canyon Formations occurred at this time (Walper, 1982). These Middle and Late Pennsylvanian age rocks consist mostly of sandstones and conglomerates with fewer and thinner limestone beds (Figure 4). Wolfcampian age sandstones also produce oil and gas along the western portion of the USGS Province 50 and on the Bend Arch, Eastern Shelf, and Concho platform."

It is very important to note that AMEP is a BDC that is valued by not only the revenues, but importantly the NAV (Net Asset Value).
The SEC filings has the wholly owned investees valued on AMEP's old costs paid for the companies, however AMEP intends to have the company's NAV evaluated and updated by an independent auditor in the very near future. AMEP will see a jump in value that will be a large 'multiple' of the old NAV, IMVHO and per the available DD, now that they have the two drilling rigs, the 3-D seismic survey showing the extent and potential of the Oil and NG reserves still in the ground, the NG sales line that runs under a river that AMEP has 50% ownership and control, and a vast amount of additional equipment besides the two big drilling rigs and other truck mounted workover rigs.

AMEP is extremely under valued with the .05 SP, and with the low Market Cap to net assets value, IMVHO and per the DD. I am expecting AMEP this year to far exceed the 308 percent SP gain of last year, once both drilling rigs start bringing in wells at a 24/7 pace, and AMEP becomes more than just profitable.

GLTY jag, you will need a ton of it for your bashs to succeed.
...greeneyedhawk, ...not relying on 'luck'...just good DD.