American Energy Production Inc(fka AENP)

[Steady_T]

There is just one problem with that analysis. CB has not exercised his right to convert, so at this point he still owns the same 2% he did before.

He could own 35% IF he exercises his right to convert.

The main problem is that AMEP hasn't drilled a well that is a large money maker.

I have family land in the Ft. Worth Barnett Shale. We have 12
wells within 1 mile.

There have been 2 that didn't make a well. 1 that has been a lousy producer and didn't make back costs. 2 that are very good wells, and the rest somewhere in between.

This is from the tier 1 Barnett Shale. As you move further West the number of good wells to bad increases. The AMEP Barnett is not nearly as productive as the shale zone to the East.

The driller on our property tells me that in our area the odds of a hole that doesn't make are 20 to 25%, the odds that you get a well that just makes back costs are about 25%. The truly great wells are about 20%.

So if the odds get worse as you go West to where AMEP is then the odds of CB hitting a major well less than 50%, more like 20 to 30% , at least for the Barnett Shale.

That also helps put our drilling successs, or lack there of, into perspective.