American Green Group, Inc. (AMNE)

[Millenium323]

I think the majority of the nonsense brought up on the board today is just that, nonsense.

Look people this not rocket science. They have a bunch of wells they have drilled, tested, and are waiting on either injection to be complete or final testing after injection to be complete. They also have wells they have tested that they are waiting for approvals on.

So obviously if they have a bunch of wells which are already drilled but are not yet in production yet because they are waiting on approvals then guess what that means?

It means they are sitting their dormant and not generating any cash flow "yet". I think the majority of us here already knew that. Now a month or two ago Jerry was speaking about having $1 million or $2 million in escrow. I dont remember which. But what happened with that.

Well boys and girls if they are buying new leases that is where the money is going and they probably issued additional shares to generate cash so they could add on to those leases.

So what we have is a company that is accumulating leases but they are doing so before they have begun production on their previous wells so they have to dilute to buy more leases and drill more wells.

That is why at the time, I was hoping they would wait before they went on this big buying binge and waited until they had the wells up and producing that they had already drilled that way they could have generated cash flow from the wells that they already had in existence and then used that cash to drill more wells and to buy more leases.

But they did not wait for production to start so that is why they have to dilute. They need to get production started ASAP. That is the problem. Because if u dont have production then obviously you arent going to have cash flow to drill wells and accumulate leases. Unless you dilute of course.

Of course it would have been nice if they would have published a 3rd party reserve estimate on their new leases so that the leases could have been priced into the stock. But obviously they did not bother to do that either.

So RGNO sits at a low price. Investor friendly is not exactly what comes to mind when you think of this group.

Thoughts from an outside observer.