Replies to post #27868 on American Energy Production Inc(fka AENP)

[6kidz]

Do you think a 90 BOE/D producer is worth over a $1 a share?
With the R/S it will be worth 15 cents. Look at other producers and compare the output to the outstanding shares. You'll loose even more with a R/S...

it is what it is. a penny oil & gas. until they have signficant production

GLTY

[Fishforbreakfast]

Hello, Mike. You make some excellent points. Thru all of this I have tried my best to Bite my lip and kinda keep quiet.. last year I was very much touting SLJB on their board. I had earmed something like 200 member marks.. I had many who bought into SLJB because of some of the varied opinions and postings I made on the SLJB I-Hub Board.. I can not even begin to describe how I feel today after SLJB blew up. I lost a lot of money and had friends who also lost a lot because of what I wrote. Thus I am inclined to stay in the background.

Like many I am not all that thrilled about the R/S as it currently is structured. However at this time do we need to have a lynch mob running around doing more harm than good..

I am all in favor of making a move to a higher exchange and getting out from under the influence of various Hedge funds and market makers who seem to have a lot of influence over the direction of the PPS with their ability to short OTCBB Stockw while we are not able to do the same..

That one thing all by itself was enough for me t vote for the R/S Even if it means letting CB have a larger percentage ownership of the Company.

Now I am not so sure. I was hoping that CB would come out and really give some of his thoughts and visions and reasons for keeping the R/S as is..

Are we really going to be able to replace CB with someone else who knows as much or more about AMEP than he does? I may not like CB for the way he releases news etc. But I do trust him to run the Oil & Gas side of AMEP.. In my opinion and it's only mine removing CB would mean the death of AMEP He is AMEP like it or not.

CB has a lot to gain if he owns a larger stake in AMEP.. He lives and breath AMEp 24/7.. I do not feelCB is going to be turning around and killing off his own investment and hurting himself with some massive dilution.. Remember each time he would happen to use A/S to raise some cash or buy something thats needed. etc he is diluting his own percentage ownership.

At this point in time the hostile attitude of many shareholders is hurting our investment as a group.. Yes I do feel the R/S has a chance of getting voted done based on the over all feelings of many on this board.. But remember this Who are we going to get to come in and take over for CB if we try to replace him as many are suggesting..

For our investment to grow going forward we are going to need a CEO who is focused on drilling and production.. It will take quarter after quarter of increasing revenues and earnings to really attract the kind of money to grow the PPS over time. We are going to need to get listed on another exchange.. That one reason is enough for me to vote yes to the R/S.

I feel the PPS will really never amount to much as long as we are an OTCBB Listed stock. Serious money the kinda of money that makes Hedge Funds and off shore accounts look for other stocks to mess with does not buy OTCBB Stocks..

I was kinda hoping that CB would be forth coming with some news to get the PPS heading in a higer direction, the R/S would take place and a move to the AMX would take effect with the R/S. Seems like that is asking for way to much at this time..

My biggest fear is this. If the R/S would hapen to go thru then the MM and Hedge Funds and Of shore accounts will simply turn around and beat the PPS to death knowing they have the time and money to do it.

I am told CB has some money lined up ready to give him what he needs to expand the drilling operations if the R/S passes. The number I am hearing was 5 Million Dollars.. This would be in the form of a private placement with shares that are locked up for a certain period of time..What wrong with giving some shares foe the money we need to grow the company and move forward with the drilling operation..

CB is something like 61 years old.. I am 59 I want to see CB get filthy rich.. If he gets rich I stand to make some money of my investment.. In any event I feel we are going to be much worse off without CB than with him..

How do we come out as winners with so many divided interest and so much mis placed trust.. I know this the market does not like or does it reward stocks that have shareholders screaming for someones head.

I am currently between and rock and a hard place.. I have to raise some money in the very near future actually by the end of next week. Right now I am giving some very serious thought to just selling all my shares of AMEP and moving the money I have left into another stock. Selling at the current PPS and taking the loss along with the loss from SLJB last year will have life changing effects of me.. I can not even begin to tell you how I feel about this, what it has done to me personally my family and some of my friends. I have no more tears to shed. My life as I currently live it will never be the same. It has broken my heart and this time I maybe not able to recover from te beatings I have taken..

I do not see any kind of win win with the current attitude floating around and quite frankly many are in my opinion are clueless to what really moves the PPS for a stock..

I am hoping after the July 9th date of record that CB will start to give some additional updates showing some of the potential we all feel the company has in front of them.

I now feel the CB's only chance of getting the R/S passed will be to get some news out in the market place that starts to show shareholders he interested in them and growing the PPS.

He's driven a stake in the hearts of many and some no longer trust him. I understand how many feel but ask yourself are we better off with or without CB in charge. Who's going to run AMEP.

I have to make a couple really difficult choices over the next few days..Do I hold my shares of AMEP and go get a loan to get the money I will need or do I sell my shares of AMEP and quietly walk away from all of this and try to start over.. Because if I sell now I will have little to nothing left. The timing of all of this could not come at a worse time for myself.

In any event lets hope cooler heads can prevail. No one wins if we get into a pissing contest with management.. GLTA FFB-Fish

[rockawayrich]

Mike,

You said,
"2. I have been in the camp believing that the 500M OS after the split is excessive and tempting for potential abuse. At the same time, it can also be seen as everything the company says it is (currency to make timely deals, reward staff, and averting a buyout). It all depends on how carefully they limit tapping into it. Knowing that tapping into it will dilute CB’s shares too should help make him think twice."

The 'reward staff' really scares me if the 'staff' is rewarded
~ 15% after the R/S, CB and 'staff' will have more than 50% of shares and thus carte blanche to do whatever.

I agree with you as far as the dangers of a NO vote. The dangers of a YES vote are also apparent. This seems to be changing from a difficult decision into an impossible decision.

[ctb]

Mike, great post and I agree with everything you've brought forth.

I have adjusted my thinking to the point where I would probably go along with trying to replace one or two BOD members - they are elected after all, and this is supposed to be a democratic process - if the RS is voted down. The goal would be to ensure that some future consideration is given to shareholders in the form of more communication and no more drastic share restructuring schemes. At least it sends a signal that the shareholders need to be included in future plans to a greater extent than heretofore has been the case.

If the RS is approved, frankly we could still try to do the same thing while we still have any clout.

But the company is CB, and he's the driving force.

As you said:

"From the beginning, my investment in AMEP has been an investment in CB and his ability to build this company and build it into a profitable O&G junior."

[Fairgame]

thnk you MPDanford - I too agree we shoud approach this as personally as we can with the "right" shareholder representatives with a face-to-face meeting in Texas. Unfortnately my full time job and residence in Pennsylvania does not allow me to participate at that level, nor would anyone want me to as far as I can tell, but I will do whatever I can to support and facilitate this meeting in which we lay out the issues as you stated.

[RedShoulder]

I will be voting ‘FOR’ the proxy because I think it is a better choice than voting against it after considering all the known facts. The decision is not an easy one, as there are both positives and negatives in voting for or against the proxy, …and I have spent much time weighing all the known factors and did not come to a quick conclusion. That said, I believe the results of voting for the proxy will allow the company to significantly increase it’s drilling program, and become a profitable company much quicker than waiting for revenues from existing production to continue drilling at a slower pace. Passage of the proxy will also allow AMEP to double it’s capacity for bringing on new production, by funding the second drilling rig.

Another very important result of the R/S, is that it will help AMEP move up off the pennies, and onto a larger stock exchange because it will become qualified much quicker than working it’s way up from a few pennies.

With regulation 144 shares locked up to finance going full bore with both rigs on the Padgett and Hart leases; current shareholders will hold all marketable shares new buyers will be wanting as the company brings in multiple wells per month. Anyone wanting out before the lock period is over will have plenty of opportunity to sell at a good SP as the drilling program ramps up. Does anyone thinks the private placement investment group will sell their position two years out just as their money is working to bring in wells at a steady rate, and the company has turned profitable and moving the SP in a positive trend up? ...I don't think so.

I believe the stock will run like FRPT did a little after it's 12:1 reverse split. I owned that stock too through the reverse split after buying up a bunch of .15 to .19 shares. It has hit $30.00 a couple of times recently, resulting in a 10 bagger in the that 12 month period. I sold too early after the R/S but did but very cheap AMEP shares with the proceeds. Here is what AMEP and FRPT have in common that is most important and that separates them from the R/S pack that goes down because of no product demand; both companies at the time of the R/S were on the brink of going profitable because they had a product in very high demand, they both just needed financing to expand the operations to go profitable. You don't even need to hire a sales force for gas and oil sales, or the best armored vehicle in Iraq...the demand is high on both counts. There is a buyer for all you can produce. AMEP has huge quantities of the gas and oil product in the ground, with no bank debts; ...but it needs financing to go full bore now that the Padgett lease has proved up in a big way, to go with the already proven Hart lease, ... 144 lock up shares can do that, and not deduct from the bottom line like bank loans do.

Being in the original group of shareholders as AMEP company goes profitable in the future, holding the same percentage of the tradeable float as they do now, is a ticket to a front row seat in this company as it grows in the Barnett Shale, the largest still in-ground reserves of natural gas in the US.

Like every other stockholder, I would prefer much better terms in the proposal; but I do trust that the CEO will be judicious with the treasury shares. Every private placement of lock up shares will effectively dilute the CEO’s shares too and his percentage of ownership, once the lock up provision expires and the shares are registered with the SEC. Therefore I believe the private placement funds will be used to increase the value of the company, which means no dilution in value - and likely result in an increases in the value of the company and your share value.

Although I plan on voting for the proxy, I respect every ones opinion that I respected before, including reasons to vote against. It is a tough choice to make; because the unknown alternatives could spell disaster (or not). I am not going to get into a drawn out debate with anyone over which way to vote, and hope these boards don’t stoop to name calling because of opposing positions. This is how my family and I are going to vote, yet I respect those with opinions against the vote. This is no cut and dried matter, because the multiple variables that effect a for or against vote. The choice is a personal matter, and I don’t believe anyone should be attacked personally …no matter which way they vote.

I am voting what I think has the best chance of increasing my ROI, ...return on investment.

(mpdanford, you post that is in the response was very well thought out IMO - thanks for your valued opinions.)

Good luck all AMEP longs,
…greeneyedhawk