I will be voting ‘FOR’ the proxy because I think it is a better choice than voting against it after considering all the known facts. The decision is not an easy one, as there are both positives and negatives in voting for or against the proxy, …and I have spent much time weighing all the known factors and did not come to a quick conclusion. That said, I believe the results of voting for the proxy will allow the company to significantly increase it’s drilling program, and become a profitable company much quicker than waiting for revenues from existing production to continue drilling at a slower pace. Passage of the proxy will also allow AMEP to double it’s capacity for bringing on new production, by funding the second drilling rig.
Another very important result of the R/S, is that it will help AMEP move up off the pennies, and onto a larger stock exchange because it will become qualified much quicker than working it’s way up from a few pennies.
With regulation 144 shares locked up to finance going full bore with both rigs on the Padgett and Hart leases; current shareholders will hold all marketable shares new buyers will be wanting as the company brings in multiple wells per month. Anyone wanting out before the lock period is over will have plenty of opportunity to sell at a good SP as the drilling program ramps up. Does anyone thinks the private placement investment group will sell their position two years out just as their money is working to bring in wells at a steady rate, and the company has turned profitable and moving the SP in a positive trend up? ...I don't think so.
I believe the stock will run like FRPT did a little after it's 12:1 reverse split. I owned that stock too through the reverse split after buying up a bunch of .15 to .19 shares. It has hit $30.00 a couple of times recently, resulting in a 10 bagger in the that 12 month period. I sold too early after the R/S but did but very cheap AMEP shares with the proceeds. Here is what AMEP and FRPT have in common that is most important and that separates them from the R/S pack that goes down because of no product demand; both companies at the time of the R/S were on the brink of going profitable because they had a product in very high demand, they both just needed financing to expand the operations to go profitable. You don't even need to hire a sales force for gas and oil sales, or the best armored vehicle in Iraq...the demand is high on both counts. There is a buyer for all you can produce. AMEP has huge quantities of the gas and oil product in the ground, with no bank debts; ...but it needs financing to go full bore now that the Padgett lease has proved up in a big way, to go with the already proven Hart lease, ... 144 lock up shares can do that, and not deduct from the bottom line like bank loans do.
Being in the original group of shareholders as AMEP company goes profitable in the future, holding the same percentage of the tradeable float as they do now, is a ticket to a front row seat in this company as it grows in the Barnett Shale, the largest still in-ground reserves of natural gas in the US.
Like every other stockholder, I would prefer much better terms in the proposal; but I do trust that the CEO will be judicious with the treasury shares. Every private placement of lock up shares will effectively dilute the CEO’s shares too and his percentage of ownership, once the lock up provision expires and the shares are registered with the SEC. Therefore I believe the private placement funds will be used to increase the value of the company, which means no dilution in value - and likely result in an increases in the value of the company and your share value.
Although I plan on voting for the proxy, I respect every ones opinion that I respected before, including reasons to vote against. It is a tough choice to make; because the unknown alternatives could spell disaster (or not). I am not going to get into a drawn out debate with anyone over which way to vote, and hope these boards don’t stoop to name calling because of opposing positions. This is how my family and I are going to vote, yet I respect those with opinions against the vote. This is no cut and dried matter, because the multiple variables that effect a for or against vote. The choice is a personal matter, and I don’t believe anyone should be attacked personally …no matter which way they vote.
I am voting what I think has the best chance of increasing my ROI, ...return on investment.
(mpdanford, you post that is in the response was very well thought out IMO - thanks for your valued opinions.)
Good luck all AMEP longs,
…greeneyedhawk
