American Energy Production Inc(fka AENP)

[falconer66a]

Expectations Update on AMEP

About a month or so ago, when AMEP was hovering in the 2 to 3 cent range, I posted my long term expectations on the company, outlining why I was certain that its share price would, in time, grow many, many times. For the last few days, the price has settled in the 6 to 7 cent range, a nice doubling or more.

With the recent onset of a narrow trading range, daily trading volumes have declined dramatically, indicating that day traders and momentum players are now playing their games elsewhere. Importantly, AMEP has not dropped back anywhere near the 2 and 3 cent price levels seen a month or more earlier. Beneath all the day trading foam of recent weeks, there has been a quiet accumulation of shares by long-term investors who have intelligently learned of the remarkable future for American Energy Production, Inc. The due diligence postings of Greeneyedhawk (Nos. 1 though 5, posted quiet frequently in the last few weeks) are, frankly, case studies in how a penny stock must be parsed out.

The fundamentals of AMEP, as described so expertly and with such detail by Greeneyedhawk, remain undiminished, the current share price plateau notwithstanding. For those new to the stock, and who have read Greeneyedhawk’s due diligence postings, and have begun to consider taking an initial position, now would be an ideal time. There is a reduced chance that the price could slip for a short period as low, perhaps, as the 5-cent range. But the far greater probability is that it will hover in the 6- to 7-cent range for a time, then elevate quickly toward a dime or higher. Even the day traders are checking in each day, searching for the first drilling news with the new rig. That news could be released any day now, and when the Texas earth is punctured by AMEP’s giant rig, anticipation will give way to ever-increasing share prices. With rights to drill into 7000 acres of the finest natural gas reserves in the US, the mere grinding of an AMEP drillbit into rock will wash off a great deal of market uncertainties for the company.

Right now, AMEP is primarily promise, not product. Most penny stocks remain so because they seldom deliver on their promises. But the promises of AMEP are simply astounding. To learn of them, read Greeneyedhawk’s postings. Presently, only a minority of investors fully realize where this company is going to be in a year or two. Most penny stock investors appear to be traders, not investors, so don’t let current share prices or trends enter into a decision to buy or sell the stock. This message isn’t for traders. Like my previous posting, this is for the consideration of authentic investors, folks who want to allocate personal funds with the considered expectation of great rewards after a year or more. This is one of the very few penny stocks that will deliver.

I don’t spend much time reading the frothy blather of most of the postings on the Raging Bull AMEP board, and some of that has sloshed over here recently onto this board. I’m looking for solid, first hand information. To date, all of that shows that even today, AMEP is grossly underpriced. That will all change in a few weeks, when the first AMEP Barnett Shale production hydrocarbons will go to market.

When that happens, a host of potential investors will begin to punch in possible future revenue numbers for the wells AMEP will be drilling. For my self, I’ve already filled up a spreadsheet with the possible ranges of daily barrels and cubic feet of production per well, based upon a few well production figures on other, non-AMEP Barnett Shale wells. The results, even at the lowest ranges, are just remarkable. When AMEP’s first Barnett well actually yields some daily production numbers, even the day-trading bumpkins will calculate a projected, increasing revenue stream with each new well. Most of those people can multiply by 12, and will then begin to see where this company will be in a year.

I know a bit about geology, and have discerned typical production numbers from Barnett Shale wells using the new extraction technologies AMEP will be using. The numbers are absolutely compelling. This stock won’t stay at less than a dime for long, and when actual well production numbers are first released, share prices will climb to fifty cents or a buck.

The next question new investors would then have to answer is how fast and how many wells can AMEP drill in a year. I don’t know. I’ve heard of wells being completed in as little as 18 days or so, with others taking as long as a month. At the least, that’s a dozen a year, with a corporate income of multiple millions of dollars.

I needn’t go on. For day traders and momentum players, my comments and perspectives are irrelevant. As I said before, check back in a few months or a year or more, to see if my perspectives are valid. I’m not much interested in the AMEP share price next week or next month. Let’s see where it is, say, in February or March. Better still, see if any of my thoughts had any validity when you check the price in February, 2007. The 2.6 million shares I purchased at an averaged price of 3.7 cents or so during the summer and early fall of 2005 – against the emotional personal advice of a number of prominent bashers – will look pretty handsome.

I’ve been investing in stocks now for eleven years. None have come close to the potential of AMEP. This is a rare, once in a quarter-century opportunity. For readers pondering an AMEP purchase, now is the time to do some very serious thinking. Get out the calculator, or click up the spreadsheet, and start calculating where this company will be with between 40 to 80 natural gas wells (or more), each producing anywhere from one to three (or more) millions of dollars of income for the next 10 to 20 years. And then, what if the HOA-800 technology takes off? How many abandoned or exhausted heavy oil wells in Texas and other states simply await AMEP’s proprietary extraction technology? The mind boggles. Those with the longest vision will be the best rewarded.

Greeneyedhawk’s due diligence postings can be found at:

#1 http://investorshub.com/boards/read_msg.asp?message_id=7967259

#2 http://investorshub.com/boards/read_msg.asp?message_id=7967267

#3 http://investorshub.com/boards/read_msg.asp?message_id=7970002

#4 http://investorshub.com/boards/read_msg.asp?message_id=7973289

#5 http://investorshub.com/boards/read_msg.asp?message_id=7863459