Replies to post #2827 on American Energy Production Inc(fka AENP)

[LowFloatGoat]

jag, I think you are off on your calculations. TDYH has a market cap around 45 million. $2 x 22.5 mil shares. Using TDYH $45 million market cap as a benchmark, then AMEP would have a share price of about $0.14. TDYH also has way more current production than AMEP. Once AMEP starts reporting more proven reserves and showing some production then AMEP will justify a higher price. Likewise, TDYH should probably be trading at a higher market cap than $45 million, probably close to double that amount. That's why I feel AMEP's fair value will rise into the $0.20's over the next 6 months.

Here is my AMEP call from 9/21/05 when AMEP was trading at around $.03.
http://www.investorshub.com/boards/read_msg.asp?message_id=7826381

Posted by: LowFloatGoat
In reply to: zigbee who wrote msg# 1416 Date:9/21/2005 10:52:36 AM
Post #of 1938

AMEP Valuation based on market caps of small pink and BB oil/gas plays. Looking at the likes of TNOG, PTGC, etc with a few wells flowing or about to flow you see market caps around $20 million. In the latest 10Q AMEP reports 305 million outstanding shares. In the next few days/weeks I expect AMEP's market cap to rise to $20 million as the the new rig begins drilling. That translates to an AMEP share price of 20,000,000/300,000,000 = $0.067. About twice the current share price.

Next, consider TDYH, a company similar to TNOG. TDYH has a couple of rigs, some producing wells and some nice leases. TDYH has a market cap of about $75 million. That translates to an AMEP share price of 75,000,000/300,000,000 = $0.25.

I think it is reasonable to expect AMEP's share price to move to the $0.05 to $0.07 range in the next few days/weeks. Then trend upward toward the $0.25 level.

The AMEP story is getting out. Congrats to the longs who found this gem in the early stages. (And thanks to the shorts and bashers for giving me the chance to get in on that last dip into the teens!)

[mnfats]

Jagman-It's a pinkie. You can't even be sure of the outstanding or authorized. You, however like what they're doing. If the PR's have any validity it could be a good risk. Just like AMEP. I think I will pick some up. I have been looking at it for awhile.