Replies to post #41867 on American Energy Production Inc(fka AENP)

[Slippery Wing]

Interesting. I'll keep my eyes open for it.

From a macro perspective, the last 5 years were a terrible time to expand production through drilling. Any new acreage had to be bought at a huge premium due primarily long-range forecasts of outrageous prices, much less the current market value for crude at that time.

Drilling costs were atrocious, and pipe dope was $100 per bucket off the drilling rig (retails for about $25).

Anyone who bought production in the last 5 years is probably under water right now, and those without liquidity and huge amounts of debt are suffering, and I wouldn't be surprised to see a few mismanaged E&P companies go under (and they should). Chesapeake is a prime example.

I can't say anything about AENP since I got out a while ago, but if we can keep oil prices in the $40 range for another couple months, land will start to get cheap again and operating costs will start to look "normal".

Just my point of view, and again, I have no opinion on AENP. Just check in once in a while to see who's still around.

[jackson227]

The only things that scare me about AENP's filings are their repeated operating losses.


They better start making some money, otherwise it will be very difficult to presumethe business is a going-concern.


They have very little cash.


The good thing is that they have little debt.

If they can make it through this year alright and start posting profits, the good news is that they have past-years losses that can be carried forward to off-set any future profits.


Question for you.


Does AENP have any plans of ever being bought out, or do they want to operate on their own?



FYI- I didn't contact JPM yesterday. I will be doing so early next week.