AMEP DD #2:
Financial News & Assets: With a total net income of (207)K, AMEP profitability is within sight on such a small loss, IMVHO (see Aug 31st "financials" news).
The next two scheduled horizontal wells by wholly owned Bend Arch should do the trick, along with additional Oil wells brought into production by the wholly owned 193 PRI well project.
I will be accumulating at these low SPs until then. SP is WAY undervalued IMO, resulting in the current and tiny $8 Million total Market Cap. AMEP's cold hard Assets and Oil & NG revenues cannot be bought for less than a 'significant multiple' of the $8 Million Market Cap.
That is an undisputable fact, ...add it up below.
Assets in a nut shell:
1) Wholly owned Bend Arch's 7,000 acres over a 100% blanket formation of the prolific Barnett, largest NG reserves in the US, on shore. (Good Barnett leases are going for about $2,000 per acre, from DrillBit's conversation with the CEO; to $6,000 that King Oil is asking from Shell per acre - see posted article.) Conservativly AMEP's wholly owned Bend Arch's 7,000 acres of Barnett Shale Formation leases are worth $14,000,000.
2) Wholly owned PRI's 193 wells and 193 working pumps project, just getting underway. (PRI recently announced as much as a 300% improvement after treating a few of it's 193 wells with HOA-800, and will now expand the operation to the entire field.)
3) Miles of owned NG sales and collection gas pipelines.
4) Crane Carrier Portable Rig, to re-work and treat the PRI 193
well project.
5) Numerous Oil storage tanks.
6) Numerous above ground and downhole Oil pumps.
7) Numerous NG compressors.
8) Steel casing inventory.
9) Oil Revenues, and ramping up for this Q and next Q.
10) Natural Gas (NG) Revenues, and ramping up for this Q and next Q.
11) Big 8,000' Capacity IDECO Rig. AMEP owns and operates a Big Rig capable of 8,000 ft, far deeper than the +4,000'- +5,000' foot deep Barnett, and can reach far below AMEP's deepest pay zones, numbering a total on 11, which the Barnett is the deepest, thus more than meet's AMEP needs. Also a big cash generator, ...as needed; "Rigs with a drilling capacity of 8,000 feet are currently netting $10,000.00 per day"(see Sept 1st news). Sept 1st Big IDEC Rig NEWS is a 'game changing dynamics' move for AMEP, allowing it to commence drilling the Barnett with high volume horizontal wells right away, while the Portable Crane Carrier Rig re-works the PRI 193 well project. Think about that.
You cannot but these assets for less than a serious 'multiple' of the current $8 Million Market Cap; that is a fact. AMEP SP component of the Market Cap is seriously undervalued, IMVHO.
GL all AMEP longs
... %^ greeneyedhawk
