American Energy Production Inc(fka AENP)

[DFYSW]

explorer186 & greeneyedhawk/ctb; I think that there is plenty to like about both AMEP and TNOG, but also nagging questions about each. Explorer, certainly no-one can dispute the impressive and sustained strength of TNOG shares over the past one and two month periods, but are you certain that Midway is spending $75K “out of pocket” to reach TNOG’s wells? This is important because, as you say, that would constitute the only independent endorsement of TNOG’s prospects (not including some truly excellent DD on the boards). The San Antonio Business Journal headlined that Titan HIRED Midway.

http://sanantonio.bizjournals.com/sanantonio/stories/2005/05/23/daily13.html

Hawk & ctb, I agree with your posts, especially that in AMEP one gets “better leases, proven reserves, current and significant revenues from Oil and NG, and at a lower market cap with not as many OS as TNOG.” I think AMEP even owns its own equipment including a servicing rig! Who could ask for anything more? Yet even though all this has been true for quite some time, the company (through its shares) have failed to reflect this apparent value. This is troublesome because it makes AMEP look too good to be true, and even a good DDer may wonder what the market is telling them. Naked shorting -- while a legitimate problem -- is too often also used as an excuse to cover up real trouble. The equity financing is said to be in the past but even then it was done at much higher prices. Even the convert due in 2007 is priced at $1.00. So if the wells have been flowing for months and the leases by themselves are getting more valuable by the day, why hasn’t the share price reflected that? Say what you will, TNOG shares support the TNOG story while AMEP shares undercut the AMEP story.

Don’t get me wrong; as I said, there is plenty to like about both AMEP and TNOG. I just have these specific questions about each which I hope someone can answer as well.