BitMine Immersion Technologies Inc. (BMNR)

[Hilander]

HERE’S WHAT I KNOW: (Part 1)

There's only 77 million outstanding shares. The leases are located in the Austin Chalk Zone on a 928 acre property in the heavily producing oil fields of Giddings, Lee County, Texas. Drilling operations are located on the Edgmon-Cameron land. As I understand, ATEX plans on re-entering existing wells. This lowers the initial cost of drilling operations. ATEX believes this to be a commercially viable oil production operation and expects work to occur over the next several years. Their plan is to have multiple wells with a projected annual income is in the neighborhood of $ 80 million when the site is fully developed.

The Giddings Field was first discovered around 1930 and has been responsible for the cumulative production of more than 380 million barrels of oil and 2.1 trillion cubic feet of natural gas. Most of this production was undertaken with antiquated vertical drilling techniques, leaving a huge amount of oil and gas reserves un-recoverable in the ground. Engineering estimates suggest there is over 1 billion in oil and gas reserves waiting to be recovered. Now, with all the seismic gadgetry using 3-D graphics and advanced seismic analysis, horizontal drilling, and proprietary recovery technologies. ATEX has new and modern techniques of finding oil the old timers couldn’t even dream about. Also, it helps to know that Exxon-Mobil is heavily invested in this region.

Also, there’s a petroleum processing plant in the area, just up the highway toward Houston. If memory serves me correctly, it’s located west of Columbus. It’s out in the middle of nowhere. The only wildlife present are jack-rabbits and a few head of cattle. At night you can see the processing plant far off in the distance. It shines for miles because the smoke stacks light the skyline for miles in all directions. It’s a beautiful sight to see. This is just one of the processing plants scattered through Texas. East Texas is also a big oil producing area around Kilgore near Alpine.

In the heavily drilled oilfields of Texas, the oil and gas is transported underground through pipelines. Back in the 70’s there was a billion dollar project called the Trans Alaskan Pipe line. It was built both above and below ground depending on its location. Oil Company lobbyists started promoting the building of the underground pipeline from Alaska to the lower states back in the late 1960’s. Why, because it was impossible to transport oil & gas by truck through the tundra. When traveling throughout Texas, IF one is observant you can see the evidence of these pipelines.

Map:

Lee County, Texas has 628.5 sq. miles in land area and a population density of 26.3 per square mile. In the last three decades of the 1900s its population grew by 94%. The average household size is 2.65 persons compared to an average family size of 3.15 persons. In 2005, it had an average wage per job of $19,150. Per capita income grew by 16.2% between 1994 and 2004 (adjusted for inflation).



http://en.wikipedia.org/wiki/Giddings%2C_Texas

To find Giddings drive due east on Hwy. 290 East from Austin towards Houston. You will drive straight through downtown Giddings with a thriving population of 16,536 according to the 2004 population census. Median household income = $36,280. It’s a rural community made up of mostly farmers, ranchers and oil related businesses. For anyone wanting higher paying jobs they migrate west to the Interstate. The I-35 corridor links the bottom tip of Texas from Laredo to Canada. This central corridor goes straight through many metropolitan cities. Job seekers find themselves relocated to Brownsville, Corpus Christie, San Antonio, San Marcos, Round Rock, Georgetown, Waco, Dallas, Ft. Worth, Little Rock Arkansas, Oklahoma City, Denver or any other large city along the highway toward Canada. This main transportation corridor was developed for NAFTA (The North American Free Trade Agreement) in the 1970’s to promote free trade and access for 18 wheeler’s to transport goods between Mexico, The U.S. and Canada.

Giddings Profile:

http://en.wikipedia.org/wiki/Giddings,_Texas


Bottom Line:

The last time Amtex rallied, the strike price on October 20, 2004 was 0.50 cents. My gain was 525%. The trading volume that day was 2,110,479. My entry point was 0.06. Today’ price is an excellent buy. It’s been approximately 28 months since the last rally and believe its time for another any day now. It’s my belief that Amtex is headed right back to the 0.50 range in the near future. It’s my gut feeling and that’s why I’m here. Until recently there was no Amtex message board. I’m here as an interested investor just like you. If anyone has any other data to share, please do not be shy. We are all in the same boat together and would appreciate any helpful information.

Since there’s only 77 million shares outstanding, it makes me wonder, is Amtex a closely held company? If I owned the company, I would own at least 20 to 27 million shares. If that guess is correct then there’s only another 50 million shares outstanding. And I would also believe the market makers also have a pretty good size chunk of the stock. Whenever they decide to take this stock up, there will be no one there to stop it. You draw your own conclusion but with this little amount of shares to be traded, when the stock moves it will move fast and the whole ballgame will be over for those not paying attention.

As far as not having a website. It doesn’t bother me because there are other stocks I’ve owned who don’t have websites. SGCR for example just got one up and running last month. For many companies, that is not their priority. They don’t want to take time to field questions from irate shareholders who think the stock’s not moving fast enough. Besides, all the information is available through the SEC filings.

As a Long investor I feel there’s an opportunity with ATEX. I’ve been buying this stock for 2+ years and will be patient and hold my stocks for as long as it takes for management to meet their goals. But, I have a feeling I won't be waiting much longer.
I trust the charts and keep a close eye on them. For me, the price and volume patterns are the most important things to monitor. Now all we need is more volume. I’ll leave that to the market makers. In the meantime, I’ll just watch and wait.

IMO, We’re headen back to the 50cent range:



Oil Field Review - Summer 2004:

http://www.slb.com/media/services/resources/oilfieldreview/ors04/sum04/composite.pdf