One thing we can all agree on is that we are in for a big bang. When I turned on the board Friday afternoon and saw what was happening I said WTXXXXX! Are you kidding me? We are about to enter the "Promise Land" and then this.
Most R/S are a disaster done by dying companies. Some say 10% of the R/S are done by up and coming companies that are positioning for growth, including moving to a bigger exchange.
IMO, when I sit back and analyze the facts of what we know, I believe good/big things are about to happen. Lets look at some of the facts, including the past and the character of the individual:
* I have been in AMEP for 2 years and no new shares have been issued. We are/have been near the ceiling with 493 million shares issued and outstanding out of 500 million authorized. The company has no room to grow or raise money where we are.
* We have no debt essentially. CB pays for everything with cash. That is his character. That is good in most respects, but I am sure that has impacted operations, in a very capital intense business, that has caused some problems and delays. Robbing Peter to pay Paul. CB, so far, has been as honest as the day is long. He puts his blood, sweat and tears into this and pays "cash on the barrel head," as Joe describes it.
* Lets not forget the SEC investigation and the fact the Company passed with flying colors. Nice to know you have the Official outside authority telling you this has a clean stamp of approval. How many of your BB or Pink stock can say that? We are now an operationally reporting company, a positive. This was officially announced in the PR in late May 2007.
* Since May 2006, when the new BOD came onboard, who is a CPA, AMEP's financial reporting has been on time or early. That was not the case before as they were always late. This guy has been a major asset, including helping guide the company through the SEC investigation.
* We have major production about to start. Padgett #11 and Padgett #12 are now being put into production since we just hooked up an approved Injection well, all disclosed on the PR release last May 2007. These wells were drilled on a lease that is near our most productive well, Murphy-Nash #1, and 3D seismic reading show 5 oil and gas formations based on the PR in September of 2006. No production numbers have been reported.
* From the TRRC filing/approval this week, we have discovered that AMEP has approval to reenter Murphy-Nash #1 to investigate the Mississippi formation. This is potentially huge. This has not been announced by the company.
* How about the 3 new leases AMEP has including one new drilling permit that we know of from the TRRC? These have not been announced by the company.
* AMEP has 7000 acres with 100% NWI in the Barnett Shale, 19X wells in PRI with $68 million is reserves and 2 drilling rigs.
* Lets state another obvious, the marketing and communications from this company has absolutely sucked, even considering the imposed SEC silence and BDC restrictions regarding assets disclosure. We are way undervalued for what we have in resources alone. This must change.
Lets play what if. If they are positioning for some type of R/S, they need to start the machine of announcements that launches the value of this company.
How about this announcement flow to start with?
* Announce Padgett #11 production.
* Announce Padgett #12 production.
* Announce Murphy-Nash #1 rework finding on the potential Mississippi formation.
* Announce new lease #1 with approved drilling permit.
* Announce new lease #2.
* Announce new lease #3.
* Announce new financials, come August, under the new operationally reporting format.
* Announce PRI plans for reworking wells, including highlighting the $68 million dollars in O & G reserves.
* Announce any new wells, lease, rig plans, etc.....
How about announcing some preliminary O & G Reserves from the Barnett Shale properties or maybe just the fact that we have engaged an outside company to do that? Boy would that be a BIG one.
Now lets say the Mississippi test is positive, Padgett 11 & 12 are producing big time, lets announce a production schedule to blanket the Mississippi and other surrounding rich O & G formations that we own.
Talk about a road map of strength and it is at our finger tips. This must happen before any R/S is considered seriously.
We have got to get the valuation of this company UP to where it belongs, especially before we do any great acquisitions or capital improvements. We have a great story that is not being told. We do not want to dilute our stock by not doing our homework first. We want our core company to be at maximum value before we start absorbing other assets or selling shares.
We need to get our house in order, and let me says this, maybe we are and we just don't know it yet. Expanding the capital structure gives us great opportunities for money, a new exchange listing, absorption of leases or companies, etc..., but we need to execute.
I invested in this company for what is about to unfold. Don't be scared off my Shorters, bashers, etc ... who want to make money at your expense. The facts are the facts. How AMEP choses to proceed is their hands and is something we shall see shortly.
This is my opinion only.
