Friday, August 26, 2005 2:33:41 PM
AMEP DD for newbees and AMEP 2 Charts. AMEP is a Texas Oil and NG producer, with 7,000 acres of 100% blanket coverage over the prolific Barnett Shale formation, the largest on shore gas reserves in the US. AMEP is also getting high grade light sweet crude Oil with the NG. Barnett wells usually only produce NG, AMEP has 'prime' Barnett leases IMHO. AMEP is getting ready to drill two horizontal wells off two re-entries with 5 1/2' casing, that will be deepened into the Barnett horizontally. AMEP will have 100% NWI (Net Working Interest) on these two horizontal wells. These re-entries are much, much cheaper than a well drilled from scratch. AMEP is also getting O&NG production from the Marble Falls, Strawn, Bend Conglomerate, and a few other formations under the leases.
Three more new horizontals are scheduled after these with wholly owned OAG, who will raise the money for drilling new wells from investors, AMEP will get a free ride and 25% NWI, after drilling cost are paid.
That is a total of 5 horizontal wells scheduled by AMEP's wholly owned subsidaries; these will be AMEP's first horizontal wells. The CEO says AMEP will be profitable in less than a year from now, in writing ...I believe that is accurate based on the progress and production.
AMEP is a BDC (Business Development Company). Bend Arch, a wholly owned subsiderary, with the 7,000 acres in the Barnett, will likely be the first to cut AMEP a profit check within a year. PRI will be next, as newly re-worked wells are brought back onto production (these were shut in when oil was cheap, below $30). PRI has 193 wells on it's lease.
AMEP has four wholly owned investees.
The OS per the recent 10Q is 302 M; so the market cap is 302,000,000 X $.0144 SP = $4,348,800. IMO, just one of AMEP Bend Arch leases is worth more than the 4.3 M market cap based on the new found Oil and Gas production.
AMEP also owns(paid for): a Crane Carrier portable rig for re-working the many wells AMEP has (PRI alone has 193 heavy oil wells and pumps). AMEP also owns miles of NG sales pipeline, tanks, pumps, NG compressors, etc. Debt is near nothing.
FWIW, I have been accumulating for over a year now, and just recently added 2 M shares to my position near the current SP, and the 200 MA. I talk to the CEO every now and then, and I think he will indeed bring AMEP to profitability in less than a year, ...these next two horizontal wells should allow wholly owned Bend Arch to cut AMEP a profit check. A test Vertical well and producer, the NASH 1-c, was drilled into the Barnett and was very successful, the horizontals should produce a multiple of the vertical oil and NG per the independent DD.
I am looking for a high percentage gains with this high risk/reward stock that is now heavly tilted to reward, IMVHO and my own DD. These high energy prices could not come at a better time for a start up O&NG producer, it makes becoming profitable much easier than when the CEO was buying leases in the Barnett, NG prices have tripled since then, and you know the story on crude prices ... a gift for AMEP and other small O&NG companies.
GL all AMEP longs.
... %^ greeneyedhawk
AMEP just made the Golden 50/200 MA cross. Also bounces off the 200 MA on dips lately, now is the fourth time it has been tested recently:
Last time AMEP made the 50/200 MA crossing it became a 9 bagger. AMEP was obtaining leases then with no revenues, now AMEP is producing Oil and NG revenues, and these revenues will increase with each new well, IMHO, especcially the horizontals.
MINERAL WELLS, Texas--(BUSINESS WIRE)--Aug. 2, 2005--American Energy Production Inc. (OTCBB:AMEP - News) announced today its wholly owned investee Bend Arch Petroleum Inc. began re-start operations of a uni-draulics jet pump on the Nash 1-C Barnett Shale well.
Charles Bitters, President of American Energy Production Inc. stated, "Bend Arch Petroleum Inc. began successfully producing the Barnett Shale well on Friday, July 29, after exchanging the complete down hole jet assembly and production tubing. The Nash 1-C is still not stabilized but on Monday August 1, the well produced in excess of 20 barrels of high gravity oil and 100,000/cubic feet of natural gas. At today's market price of $60.00/barrel for oil and $8.00/mcf of natural gas this would be approximately $1600.00/day or $48,000.00/month or $570,000.00/year gross revenue. This will add a very nice piece to the Bend Arch Production Inc. income. The company will post more results once the well has a chance to stabilize therefore giving a clearer picture as to the future of the Nash 1-C well."
The installation of the uni-draulics jet pump on the Nash 1-C well instead of a conventional pumping unit will move more oil and produced water from the well bore faster and more efficiently than the conventional pumping unit.
Charles Bitters also stated, "Bend Arch Petroleum Inc. has accumulated over 7,000 acres of leases that have potential Barnett Shale production. Oil America Group Inc. of Dallas, Texas another 100% owned investee of AMEP plan to offer drilling partnerships to potential investors to drill Barnett Shale wells on the above mentioned properties in the near future. Oil America Group Inc. will begin offering these partnerships in the next two weeks. For more information contact Joe Christopher at Oil America Group Inc."
[NOTE: The 5 horizontal wells scheduled for the Barnett, should produce a very nice multiple off the above NASH 1-C vertical well production numbers, per independent DD.]
American Energy Production Inc. Announces Positive Testing Results with AMEP HOA-800
Wednesday July 6, 8:01 am ET
MINERAL WELLS, Texas--(BUSINESS WIRE)--July 6, 2005--American Energy Production Inc. (OTCBB: AMEP - News) announced today its wholly owned investee, Production Resources Inc. posted positive testing results after 8 months of testing various procedures utilizing AMEP HOA 800. PRI discovered a method of well treatment that combines the utilization of heat along with AMEP HOA-800 in a chemical process that has returned positive results. PRI has increased oil production from the Olmos formation on the four test wells by as much as 300% for the month of June. Management now plans on expanding the testing area to an additional 10 oil wells in the next 30 to 45 days.
Charles Bitters, President of American Energy Production Inc. stated, "PRI has been working extremely hard on achieving the desired results with AMEP HOA-800 and now believe its time to start expanding this treatment program. There is still room for improvement, but I believe PRI can now benefit because of current record high oil prices and increased production rates from the Olmos heavy oil sand field. This oil field is very difficult to produce because of the tight sand and the compaction of the heavy oil in the sand, still these are very exciting results."
Management cannot discuss the details and/or formulations being used with AMEP HOA- 800, but PRI believes the heat treatment once perfected can possibly be sold to other oil operators. The Company will keep investors informed of the expanded test results.
[Note re second announcement above: AMEP's wholly owned PRI has 193 wells with working pumps to re-work and treat, and bring onto production. They have just begun .....]
Good luck all with the DD, fundamentals and the technicals.
FYI... greeneyedhawk
Three more new horizontals are scheduled after these with wholly owned OAG, who will raise the money for drilling new wells from investors, AMEP will get a free ride and 25% NWI, after drilling cost are paid.
That is a total of 5 horizontal wells scheduled by AMEP's wholly owned subsidaries; these will be AMEP's first horizontal wells. The CEO says AMEP will be profitable in less than a year from now, in writing ...I believe that is accurate based on the progress and production.
AMEP is a BDC (Business Development Company). Bend Arch, a wholly owned subsiderary, with the 7,000 acres in the Barnett, will likely be the first to cut AMEP a profit check within a year. PRI will be next, as newly re-worked wells are brought back onto production (these were shut in when oil was cheap, below $30). PRI has 193 wells on it's lease.
AMEP has four wholly owned investees.
The OS per the recent 10Q is 302 M; so the market cap is 302,000,000 X $.0144 SP = $4,348,800. IMO, just one of AMEP Bend Arch leases is worth more than the 4.3 M market cap based on the new found Oil and Gas production.
AMEP also owns(paid for): a Crane Carrier portable rig for re-working the many wells AMEP has (PRI alone has 193 heavy oil wells and pumps). AMEP also owns miles of NG sales pipeline, tanks, pumps, NG compressors, etc. Debt is near nothing.
FWIW, I have been accumulating for over a year now, and just recently added 2 M shares to my position near the current SP, and the 200 MA. I talk to the CEO every now and then, and I think he will indeed bring AMEP to profitability in less than a year, ...these next two horizontal wells should allow wholly owned Bend Arch to cut AMEP a profit check. A test Vertical well and producer, the NASH 1-c, was drilled into the Barnett and was very successful, the horizontals should produce a multiple of the vertical oil and NG per the independent DD.
I am looking for a high percentage gains with this high risk/reward stock that is now heavly tilted to reward, IMVHO and my own DD. These high energy prices could not come at a better time for a start up O&NG producer, it makes becoming profitable much easier than when the CEO was buying leases in the Barnett, NG prices have tripled since then, and you know the story on crude prices ... a gift for AMEP and other small O&NG companies.
GL all AMEP longs.
... %^ greeneyedhawk
AMEP just made the Golden 50/200 MA cross. Also bounces off the 200 MA on dips lately, now is the fourth time it has been tested recently:
Last time AMEP made the 50/200 MA crossing it became a 9 bagger. AMEP was obtaining leases then with no revenues, now AMEP is producing Oil and NG revenues, and these revenues will increase with each new well, IMHO, especcially the horizontals.
MINERAL WELLS, Texas--(BUSINESS WIRE)--Aug. 2, 2005--American Energy Production Inc. (OTCBB:AMEP - News) announced today its wholly owned investee Bend Arch Petroleum Inc. began re-start operations of a uni-draulics jet pump on the Nash 1-C Barnett Shale well.
Charles Bitters, President of American Energy Production Inc. stated, "Bend Arch Petroleum Inc. began successfully producing the Barnett Shale well on Friday, July 29, after exchanging the complete down hole jet assembly and production tubing. The Nash 1-C is still not stabilized but on Monday August 1, the well produced in excess of 20 barrels of high gravity oil and 100,000/cubic feet of natural gas. At today's market price of $60.00/barrel for oil and $8.00/mcf of natural gas this would be approximately $1600.00/day or $48,000.00/month or $570,000.00/year gross revenue. This will add a very nice piece to the Bend Arch Production Inc. income. The company will post more results once the well has a chance to stabilize therefore giving a clearer picture as to the future of the Nash 1-C well."
The installation of the uni-draulics jet pump on the Nash 1-C well instead of a conventional pumping unit will move more oil and produced water from the well bore faster and more efficiently than the conventional pumping unit.
Charles Bitters also stated, "Bend Arch Petroleum Inc. has accumulated over 7,000 acres of leases that have potential Barnett Shale production. Oil America Group Inc. of Dallas, Texas another 100% owned investee of AMEP plan to offer drilling partnerships to potential investors to drill Barnett Shale wells on the above mentioned properties in the near future. Oil America Group Inc. will begin offering these partnerships in the next two weeks. For more information contact Joe Christopher at Oil America Group Inc."
[NOTE: The 5 horizontal wells scheduled for the Barnett, should produce a very nice multiple off the above NASH 1-C vertical well production numbers, per independent DD.]
American Energy Production Inc. Announces Positive Testing Results with AMEP HOA-800
Wednesday July 6, 8:01 am ET
MINERAL WELLS, Texas--(BUSINESS WIRE)--July 6, 2005--American Energy Production Inc. (OTCBB: AMEP - News) announced today its wholly owned investee, Production Resources Inc. posted positive testing results after 8 months of testing various procedures utilizing AMEP HOA 800. PRI discovered a method of well treatment that combines the utilization of heat along with AMEP HOA-800 in a chemical process that has returned positive results. PRI has increased oil production from the Olmos formation on the four test wells by as much as 300% for the month of June. Management now plans on expanding the testing area to an additional 10 oil wells in the next 30 to 45 days.
Charles Bitters, President of American Energy Production Inc. stated, "PRI has been working extremely hard on achieving the desired results with AMEP HOA-800 and now believe its time to start expanding this treatment program. There is still room for improvement, but I believe PRI can now benefit because of current record high oil prices and increased production rates from the Olmos heavy oil sand field. This oil field is very difficult to produce because of the tight sand and the compaction of the heavy oil in the sand, still these are very exciting results."
Management cannot discuss the details and/or formulations being used with AMEP HOA- 800, but PRI believes the heat treatment once perfected can possibly be sold to other oil operators. The Company will keep investors informed of the expanded test results.
[Note re second announcement above: AMEP's wholly owned PRI has 193 wells with working pumps to re-work and treat, and bring onto production. They have just begun .....]
Good luck all with the DD, fundamentals and the technicals.
FYI... greeneyedhawk
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