Yesterday people definitely woke up for the oil issue. Anything in the oil sector, specially small and micro cap stocks, shot up with explosive volume. With the oil price where it stands now many non-profit companies will be lucrative. I've seen this kind of action in gold junior companies about a year from now, with the same genuine motivation. These micro cap stocks in the oil sector present extreme leverage for investors and their leveraged bet is starting to be proved right.
But we have a liquidity problem with AMEP.OB. Yesterday the stock traded 37 million shares (the biggest volume in the company history), but that's still not enough. So I'm buying just 3.33% instead of the usual 6.66%. I urge caution and if you will make just a small bet (very small).
Let me show you the charts, starting with one with a little history:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=986;image)
As we can see the stock was at $0.13 about a year ago, which doesn't mean much. Now the chart looks like this:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=987;image)
Yesterday we've had a powerful white marubozu which closed above the $0.017 resistance level. If the stock manages to cross the $0.028 barrier we get a double bottom pattern with a target in the $0.046 area. But those are all suppositions.
Again I urge caution and I'll be a buyer only if we don't get an enormous gap up at the open.
Everyday I will analyze AMEP.OB after the market close until I sell the stock. I always tell I'm going to sell before I actually take action. You just have to follow the answers to this post.
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Bough AMEP.OB @$0.0198
Nice one its sure on FIRE. I'm not in I have enough pennies right now ;)
The stock took about 10 to 20 minutes to take off so we've had plenty of time and supply to buy. Me too, I'm holding too many pennies, but if that's where the money is, what can I do? ;)
My filter works very well on pennies, then I just have to dig a bit about the company to see if the move has any validity ... if it does, the market will soon see it too and the stock shots up. In bigger companies it is naturally harder to find something hidden, something new.
But as capital grows, as I expect, it is going to be harder to buy penny stocks because of liquidity issues. I hope I'll have that problem in the future ;D
I didn't get in until $.024, hopefully there is still up potential from there.
Is there a target exit price for this (high or low)?
In at .0195, at the low of the day for a change. Thanks David.
Hi,
I was late! But got the price 0.025x20000. Impressed! Hope it could fly further to 0.20... Thanks a lot!
in @.021.
It tested the previous resistance (.017) twice with lows of .0172. The second time on less volume. Do you guys think that confirms the old resistance as new support?
In @ .0175
Racer X
I guess not. >:(
I have a special feeling to recognize and trade speculative bubbles. I've seen several of them and they always work the same way.
After a bull market we're entering a speculative bubble in oil and oil stocks. Usually the bubble accounts for 50% of the move of the entire bull market in 10% of the time. So I can historically and generally expect the oil index ($OIX in www.stockcharts.com) to rise some 50% in the next 4 months or so (100% for the people who bought at the beginning of the bull market in oil stocks), with the price of the barrel of oil itself to reach something north of $80.
Like I said, I've seen many speculative bubbles come and go ... and I can tell you, in the final months of the bull market, in the bubble territory, every stock that is in some way or another related to the sector will explode higher. It is a catching up phenomena, in the end investors look in the garbage and find many small and micro cap stocks forgotten, lying on the floor and they pick them in rage.
So I can say this to you honestly: I believe AMEP.OB will be a ten bagger in 3 to 4 months tops. Today I was winning about 20% in it and ended up losing 11% or so. Peanuts. I have only 3.33% in this penny stock and I'm not even a bit worried, even if it goes down 50% from my entry price I don't have a problem with that. I see a ten bagger here and I'm paying to see, nevermind the short term volatility.
Seems like bad time fore non-oil stocks. Want more bubbles. :)
I want a bubble in my piggy bank.
Quote from: David Randolph on June 16, 2005, 06:34:23 PMSo I can say this to you honestly: I believe AMEP.OB will be a ten bagger in 3 to 4 months tops. I see a ten bagger here and I'm paying to see, nevermind the short term volatility.
I like the sound of a ten bagger.. just got in AMEP @ .0148
These penny stocks can be addictive, Bought my first one yesterday cyad at .18 and sold this morning at .19 cents never thought I would be so happy with a .01 cent a share profit
We got oil at an all time high, above $58:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=1074;image)
We got oil & gas stocks (measured by the OIX) at an all time high:
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=1073;image)
About the relationship between oil and the whole market I wrote this small article: Why stocks rise when oil rises (http://www.3stocksonfire.org/trading/index.php?topic=779.0)
I feel we'll have a bubble in oil and gas stocks over the next few months. Almost, if not all, stocks in that group are set to rise - the public will pick them in rage, I believe - before the bubble blows (as they always do).
We have 412 stocks in that sector, let me give you the list: http://www.marketwatch.com/tools/industry/stocklist.asp?siteid=mktw&bcind_ind=ene&bcind_index=1&bcind_period=3mo&bcind_compidx=
From these 412 stocks many don't have any volume. AMEP.OB, curiously is the one on the list with the highest volume by quantity of shares traded (of course, not by value, this happens because price is so darn low). Quantity of shares traded in AMEP.OB will sure be noticed by the public, when they come in bulges.
I have just 3.33% of my portfolio in this stock so I'm not worried about being losing 20% in it. I'm in for the big pull, I believe this stock will be a 10 bagger. In the meantime I'll probably be watching stocks from this 412 list, perfectly knowing a bubble is coming and that it will end someday.
I am a newbie. Can you tell me what does '10 Bagger mean'?
a "10-bagger" means a stock that will yield 1000% gain. (10 times your investment)
Thanks (applaud)
David if there is a bubble in oil then should we have an alternate energy stock also in 3 fire portfolio? I suggest BLDP.
At one time we had DSTI in 3SF. Dont know which one can fit now.
Thanks for creating such a friendly and informative forum David. I was directed to your forum while doing my DD on CYAD.
I got into TNOG a little over a week ago and am already up about 90%. As you and others have stated, anything in energy should be hot for the foreseeable future and I would like to invest in a couple more come Monday. AMEP looks like a winner and I will jump in on Monday. By the way, what do y'all think of OMOG? It has been running for several weeks now. Will it continue for the next few weeks or would I be left high and dry at the end?
I greatly welcomed the price recovery today. Holding long with an average price of .018 now. I should have known better not to sell off half my position Friday at a tasty loss. Oh well. Hopefully oil prices will hold high for a bit so this things "pumps" up. >:D
I'm holding this stock even if it breaks 50% from my buying point. I believe a bubble in oil stocks is coming in the next few months and AMEP.OB will be a 10 bagger. I'm looking for other oil stocks to buy ...
Though just 3.33% of portfolio in this stock, the price and volume is too low for more.
Good Call holding onto this one.. Your Ten Bagger looks like it could become a reality.. Just hit .02 cents .. 2 excellent days in a row.. I bought much more than I should of at .0148 So I'm liking what I'm seeing so far and time to let it r r r ride
David,
Hopefully this will be a 10 bagger. After looking at the company profile they have 1 employee , who is the CEO , President,Director,Treasurer, etc... I guess an empty shell is ok just as long as all of us don't get left holding the bag in the end. Seems to be doing fine at this point though.
http://finance.yahoo.com/q/pr?s=AMEP.OB
i think the info on the yahoo site is obsolete, looking at the website of the company, it at least have 2 persons on the board of director ;)
http://www.americanenergyproduction.com/board.html
here is a little story >:D
Why will oil stocks rise? Well my old man who never invested in a single stock in his life ,tells me over dinner the other day that he would like to invest in some oil stocks, I just smiled and thought to my self how many "would be investors" are sitting on the fence at the moment looking at the price of oil at new highs and wanting a piece of the action. And what will they naturally do, well they sure won't buy a stock that is actually reputable and at 50$ a share, they want results now and a bang for their dollar. So they will search around and do what what David said, look for volume on cheap stocks, they will naturally think "hmmm something must be up" as to the reason the stock is trading with such volume, moving higher and is so cheap in price. So they load the boat and this has the formula for the making of a significant jump of share price in a company that might be almost worthless on paper.
;D
fantazia definitely got the point on small cap oil stocks. The public (and I'm sorry about calling his dad part of the «public» ;)) is starting to get interested, the story of oil price runs so much in the news that they just become interest and buy without a second thought.
That's exactly why AMEP.OB is set to rise a lot (as other small cap oil stocks), we have the beginning of a bubble in front of our eyes.
1 person is enough to own an oil field ;)
Today's action on AMEP.OB was very encouraging, volume is keeping up as price pushes higher.
AMEP.OB lost the battle against $0.25-$0.26 again today. But it didn't lost the war. I'm really not concerned with the short term developments, but with this kind of consolidation one knows that if AMEP.OB pushes above $0.28 you almost automatically get a 100% advance.
But I'm not in this stock for 100%, I want all AMEP.OB is willing to give, and I believe it's a lot, since I perfectly expect a bubble in oil stocks to emerge.
bought this stock today!!!!!!
thanks dave!!
AMEP.OB is an oil play in the micro-cap spectrum. I expect many of these stocks to go up five to ten fold in the coming speculative bubble in oil stocks. Holding on to this for the medium term, searching for more stocks of this group to grab.
I will suggest ARET.OB
With oil at $60 a barrel and above, it is natural for investors to pick these small and micro cap stocks in the oil & gas sector. AMEP.OB is just consolidating before another enormous white candle, I believe.
First post (thanks for the site):
Can someone tell me about the 1Q results of AMEP? Can't seem to find them.
Here is a summary:
http://biz.yahoo.com/e/050523/amep.ob10-q.html
I will follow this with interest. With my investing philosophy this is probably the worst pick I have ever seen!
The company is basically bankrupt. The revenue has dropped to ZERO. They are defaulting on their bank note. Their working capital is negative. They tried to raise funds through a stock offering but had to call it off. The shares they sold were priced at 0.0106 and today somebody is willing to pay 0.0197.
I have a lot of respect for the chart readers on this site, but really to invest just based on a chart is not my style – I might not be rich enough!
Why not take a look at the fundamentals before committing money? I would never invest without looking at the chart but to invest without looking at the fundamentals....
My oil pick is NLG.TO. Earning money, production is increasing very rapid. The chart is not interesting yet but it will be.....
Quote from: Michael on June 26, 2005, 03:08:07 PM
Why not take a look at the fundamentals before committing money? I would never invest without looking at the chart but to invest without looking at the fundamentals....
I think your missing the point Michael, we all know the fundamentals suck or else it certainly wouldn't be @ 2 cents a share.. We are not hoping to profit on the fundamentals, but rather the hysteria of buying on a speculative oil bubble..
Greed run amok has been an essential feature of every boom in history, and David has so eloquently pointed to this stock as a chance to profit wildly off of the Madness of Crowds, People will eventually be digging through the trash looking for the Microcap Oil sector stocks, fundamentals or no fundamentals and AMEP.OB with its daily volume is surely where some of that money will end up..
Look at History and we can learn a lot from it, History certainly does repeat itself and if you look at some of the frenzy booms of the past such as the Dutch tulip bulb craze of Holland in the early 17th century or any of the other speculative bubbles of the past you should be willing to take a small wager in this bubble as well
"In Crowds it is stupidity and not mother-wit that is accumualted" Gustave Le Bon 1895
The story of Fantazia's father wanting to get in on oil stocks will be repeated over and over across dinner tables in America and again this is testament that David's analysis was dead on
David is not proposing that one stake a large investment in the stock, rather the opposite a very small wager that you can afford to lose.. The chances that it will become a 10 bagger are well worth the small wager, ofcourse you could lose it all, but personally I love the odds of going long.. The Risk / Reward is astonishing
I applauded both Michael and Trunk.
because:
Michael: good research into fundamentals and I will watch NLG, it looks interesting(chartwise)
Trunk: I really enjoyed your post. Bringing up the Dutch tulip bulb craze was great! 8) You hit it right on.
I really dont see what we are doing as investing at all. We are trading. We are hitchhiking in the market. From one stop to the next ;) We dont always get to the destination we want but we sometimes dont have a destination...just to be on the way.
Trunk, Great post!
As I said (or at least meant to say) I am here to learn. If it is really true that people will continue to throw money at a stock like AMEP with disregard of the fundamentals I might have to revise my strategy!
I love the tulip story (as I remember it there were examples of people buying half a tulip bulb!) but I hardly see the oil industry as a bubble. It rather seems to be one of the most attractive value plays around. NLG.TO is just one example of a small player with tremendous potential. As said NLG's chart is not on fire yet but I am sure there most be some of the oil stocks that have charts that are at least shimmering with healthy fundamentals!
We will see.....
A single Bulb in 1636-1637 before the Tulip Bulb crash would go for about 5,000 guilders, it is impossible to translate that into modern money, but it was about twice the yearly income of a wealthy merchant of the time just in 1 bulb... and yes people would spit the bulbs in half and sell halves of bulbs.. Everybody saw there neighbors getting rich off of Tulips and they had to get involved as well... the prices of tulip bulbs increased 20 fold just in one month (JAN 1637)
this is not much different than the dot-com bubble where everybody saw there friends getting rich and they had to get in as well.. To a lesser extent Mass hysteria took over and everybody and their brother threw their money at any dot.com that existed, whether the companies ever had a chance to reach profitibility or survive was never a question...
So here we are now.. Everybody is seeing their neighbors getting rich off of Oil and they want a part of the action too.. the next logical step is to beat the masses into the pot and exit long before them.. Fundamentals are irrelevant, understanding human psychology is key
How can I trade NLG through ameritrade? Any idea it shows invalid symbol to me?
Thanks,
Dhiraj
NLG.TO looks very interesting to me, but I have the same problem as dhiraj19- ticker doesen't show up on Ameritrade.. what is a .TO issue mean anyways? never seen that before.. anyways if the average investor can't get a hold of NLG.TO then that lessons the reasons to own some of it..
Quote from: Michael on June 26, 2005, 03:08:07 PM
Here is a summary:
http://biz.yahoo.com/e/050523/amep.ob10-q.html
I will follow this with interest. With my investing philosophy this is probably the worst pick I have ever seen!
The company is basically bankrupt. The revenue has dropped to ZERO. They are defaulting on their bank note. Their working capital is negative. They tried to raise funds through a stock offering but had to call it off. The shares they sold were priced at 0.0106 and today somebody is willing to pay 0.0197.
I have a lot of respect for the chart readers on this site, but really to invest just based on a chart is not my style – I might not be rich enough!
Why not take a look at the fundamentals before committing money? I would never invest without looking at the chart but to invest without looking at the fundamentals....
My oil pick is NLG.TO. Earning money, production is increasing very rapid. The chart is not interesting yet but it will be.....
Michael,
I totally understand and respect your business philosophy, although it's very different from my own.
Probably it's not only about I being a technical or a fundamental trader, but also because of the investment time frame.
10 of my 10 best trades this year were all done in companies near bankruptcy, or companies with really scary fundamental data. They were all closed above 100% profit, some 10 bagger plus... They were all short term, 1-2 days, 2-3 weeks max... They were all based on Technical Analysis, after checking a little of their fundamentals speculative «potential»...
When I search for short term trading opportunities, I don't look for strong fundamentals, I believe that most of them are already discounted by the market activity... I don't see myself trading KO, MCD or MSFT, although I know they are really profitable companies, born to last for the next 100 or 200 years and to give their shareholders a lot of dividends (well... I don't know about MSFT hehehe).... Of course I'm exaggerating when I call these 3 examples.
The point is just one:
When I buy some shares, I'm not buying fundamentals, and I'm not buying a seat on the board, I'm just buying a price... a number...
My money depends on that number, so I try to buy numbers that have good potential of going up soon...
I know that the number doesn't depend directly on the fundamentals (on my short time frame), because I see the numbers oscillating a lot while the fundamentals are just the same...
This numbers moves according to supply/demand... supply/demand can be seen on the charts, so I focus my mind on the charts ;)
Off course, I'm being a bit exaggerated, but just to show my point of view... I care about fundamentals, just to know see a bit more behind the numbers, but ultimately I'm just trading numbers, stories, potentials, dreams, ideas, mass behaviours... not companies ;)
Best regards,
Trunk and Dhiraj, a symbol ending with .TO is traded on the TSE (Toronto Stock exchange) here is the chart if you are interested. If your broker allows trading on the TSE you should see the symbol. The tse is actually weighted very heavily in commodity issues.
http://finance.yahoo.com/q?s=nlg.to
Good luck
Crude Vaults Past $60 a Barrel
Sunday June 26, 10:31 pm ET
Crude Vaults to New High of Just Over $60 a Barrel in Asian-Hours Trading on Supply Concerns.
That's all the info that you need.
Great posts and strategic thoughts on this thread. One only has to think of the internet bubble to see that it is possible for a stock worth nothing to rise 10 or 100 fold. Over the long term they come back to zero.
It is a speculator's job to anticipate what the crowd will do ... and I believe they will buy anything related to oil, anything. I've seen this phenomena repeat itself several times and it will probably happen again. Of course, the final rush only comes at the very final stages of the bull market ... probably AMEP.OB will be lying on the floor until oil gets to $80 a barrel, and then, only then, it will rise 1000% or more in a few days ... we'll see. I see the problem this way: if the stock gets delisted or something I will lose 6.66% of my portfolio. If it goes up 1000% I'll make a 66.6% profit. This looks like a good risk/reward ratio so I'm keeping the stock for the medium term.
American Energy Production Inc. Announces 2nd Potential Re-Entry of Barnett Shale Well on 12 Well Bend Arch Petrolem Inc. Project
Tuesday June 28, 9:01 am ET
MINERAL WELLS, Texas--(BUSINESS WIRE)--June 28, 2005--American Energy Production Inc. (OTCBB:AMEP - News) announced today its wholly owned investee Bend Arch Petroleum Inc. is in the process of filing permits to re-enter another well in the Barnett Shale formation located on its 12 well Palo Pinto Project.
Charles Bitters, President of American Energy Production Inc. stated, "This well is in the same vicinity as the Barnett Shale oil and gas well on the 12 well project that has produced approximately 15,000 barrels of oil and 45 million cubic feet of natural gas since July of 2004. The difference with this well is it has 5 1/2" production casing which will allow the well to have a 1000 to 1500 foot horizontal leg drilled instead of being a vertical well. Usually a horizontal well will produce more oil and natural gas than a vertical well. The company is very excited about the potential for this well because it will allow a more extensive evaluation of the oil and natural gas lease holdings in the area."
Bend Arch Petroleum Inc. will continue its aggressive drilling and exploration program in the Barnett Shale formation. With today's record high prices for oil almost $61.00/barrel and almost $8.00/mcf for natural gas, Bend Arch Petroleum is in a great position to benefit from these prices because the Company has accumulated over 7,000 acres of leases that have potential Barnett Shale production.
Bend Arch Petroleum Inc. and Oil America Group Inc. of Dallas, another 100% owned investee of AMEP, plan to offer drilling partnerships to potential investors to drill Barnett Shale wells on the above mentioned properties in the near future. For more information contact Joe Christopher at Oil America Group Inc.
Statements contained in this release, which are not historical facts, may be considered "forward-looking statements" and are based on current expectations and the current economic environment. We caution the reader that such forward-looking statements are not guarantees of future performance, unknown risk, uncertainties, as well as other uncontrollable or unknown factors could cause actual results to materially differ from the result, performance, or expectations expressed or implied by such forward-looking statements.
http://biz.yahoo.com/bw/050628/285492.html?.v=1
;)
On the prior analysis I said I had my usual 6.66% in AMEP.OB but I wasn't right, I have only 3.33% as you can read on the beginning of the thread.
Today the stock didn't behave well, but we have to consider oil came down more than $2 a barrel today ... these micro cap oil stocks are like options to the oil price. With oil at $40 they're worth zero, with oil at $80 they are worth at least 10 times more where they are now.
I believe oil will hit $80 before $40 so I'll make 1000% first than I lose 100% on this position. That's the speculation I'm in.
Volume picked up nicely on AMEP.OB today, which is nice. As long as the stock gets attention everything will work out fine for bulls.
This just sent to me from Momentum traders network today.
Good news for small oil Companies in the US.
Energy Bill Passes Senate, Fueling Domestic Production
"Tuesday, the US Senate approved legislation revamping the nation's
energy policy. The energy bill, which was approved overwhelmingly by an 85
to 12 vote by lawmakers, aims to reduce US dependence on foreign oil.
Standing in the middle of these actions are the often overlooked
smaller North American domestic exploration and production companies,
commonly referred to as "juniors." But with lofty prices and strong demand,
some of these junior oil companies are outpacing their larger peers,
though the market has yet to realize it. "
Thanks johnbmcginnis, nice info.
My wife is complaining about me holding this stock. She says AMEP.OB is for too long on 3SF portfolio and I'm losing too much on this position (24% with 3.33% of total equity).
After saying her place is in the kitchen (lol, forgive me this woman), I began thinking perhaps she's right - many times in the past when I have embraced a fundamental story I lost money, big money !
But this time I took some precautions (learning from past experiences). I have only 3.33% of equity in each micro cap oil position and I have 4 of them, just in case I'm right on the macro story but unfortunately pick some stupid stock that refuses to climb. This means I have about 13% of capital at risk in this oil bubble story.
Of course I won't average down my price (since everyday my stocks go down I'm more away from being right and closer to being wrong) and I've decided 4 stocks is enough, so I won't buy anymore into this story, I got my stake now let's see how the whole thing with oil plays out.
Considering AMEP.OB we have a positive divergence between price and volume, that is, price is going down but volume is increasing on the way down, which means buyers are being attracted by the lower prices.
It is possible for the stock to come down to that support line on the chart at $0.106. It would be a sad thing to see, -50% on a 3SF portfolio stock, but I can live with that. Expecting a 1000% return we must be prepared to be in the red for 50%, that's all about penny stock trading.
Nothing new on AMEP.OB, a minor reaction to a minor support at $0.013.
AMEP.OB is leaving big tails on the last 3 candles. This means there's some bargain hunting during the session when price goes down. I'm not sure how to interpret the lack of volume so I'll just recognize the fact.
I'm holding AMEP.OB for the coming oil bubble.
David,
Still wondering why you put yourself through this ???
Try to look at the intraday chart. You will see that AMEP is traded down under heavy volume dureing the trading session and then traded up under light volume at the end of the day. I wouldn't call this bargain hunting but rather selling pressure IMHO
Mike
The premise for your bet on the small cap oil stocks is that they will benefit from the so-called oil bubble rather than the fundamentals of the stocks. (god knows the fundamentals of AMEP doesn't look good!)
My point is that your premise is wrong.
I would define a bubble as irrational pricing of a product or commodity in this case oil, which is not support by actual demand and supply. For stocks a bubble could be defined as an irrational pricing based on unrealistic expectations to future earnings. The idea is that any company that is associated with oil will go up disconnected from the fundamentals. Investors are afraid of being left behind and will buy whatever is put in front of them. Similar to the tulip bubble in Holland and the Internet Bubble in US.
But is there an oil bubble? The demand seems very solid driven by the growth in China and supply is expected to go down, as the world's oil wells will be depleted. For me at least the oil price seems to be supported by supply and demand. After all it is a well-known fact that we are using more oil that we are finding so the clock is ticking. (read here: http://society.guardian.co.uk/societyguardian/story/0,,1491029,00.html)
The other question is if the prices of oil stocks are disconnect from their future earning potentials. In my opinion they are. Most oil stocks are traded at PE's between 9 and 18 despite their rapid increasing earnings. I believe the oil stocks is lacking behind the fundamental changes in the industry. But is it a bubble? Well it seems to be the opposite!
Now with investors being presented for what I consider an abundance of very attractive oil stocks at very low valuations why would they invest in high-risk penny stocks without earnings?
You might see an oil bubble later when NLG.TO trades at $100 ;D but I think you are way ahead of the curve.
I have been wrong before and I will be wrong again so don't kill me if AMEP will close at 00.025 on Tuesday. (I believe all oil stocks will have a good day on Tuesday!)
I do believe (or is it just a hope, because I have several small oil-stocks?) that these small stocks will react to the rising oilprices.
Friday was not very incuraging, maybe due to the long weekend?
But read this:
http://news.moneycentral.msn.com/provider/providerarticle.asp?feed=OBR&Date=20050704&ID=4937700
So, I'm pumping my bicycle - don't want to pay the horrendously expensive gasprices here in Denmark - and I hope for the best for the stocks tomorrow.
I do agree that the big problem seems to be the lack of refineries.
One oil company worth keeping an eye on is SU, this one I wish I had bought quite a while ago!
Cheers.
Michael, excellent points (applaud), although I sincerely hope you are wrong this time! ;)
Your question of the existence of an "oil bubble" and the affect on small cap oil stocks was an interesting read, and prompted me to wonder if alternative energy stocks might be a better bet as oil supplies decline (longer term, of course).
I'm back in for 60,000 shares at .016 lots of buyers showed up from somewhere ??? didn't want to miss a run
Nothing new on
AMEP.OB so I'll just consider Michael's interesting analysis.
QuoteI would define a bubble as irrational pricing of a product or commodity in this case oil, which is not support by actual demand and supply. For stocks a bubble could be defined as an irrational pricing based on unrealistic expectations to future earnings. The idea is that any company that is associated with oil will go up disconnected from the fundamentals. Investors are afraid of being left behind and will buy whatever is put in front of them. Similar to the tulip bubble in Holland and the Internet Bubble in US.
This definition forgets one simple thing: the market is made of people, buying and selling. Not of accountants, not of financial analysts with complex valuation metrics, but made of people that goes to work everyday, reads the newspapers and watches the news.
I define a bubble out of the degree of public participation. If there is a macroeconomic story that is known by everyone and his mother and his grandmother, we certainly have the potential for a bubble. A bubble occurs when misinformed people enters the market, it goes beyond any logic because people who are buying the shares don't follow any logic that Wall Street uses in its day to day trading, like news, valuation, technical analysis, whatever.
The public is asleep, doesn't even considers entering the market ... but the story bangs their heads everyday, at lunch, at dinner, everytime he goes filling up his car with gasoline.
Suddenly, almost at the same time, everyone concludes he must buy stocks on that sector. And stocks rocket higher, much higher than anyone «rational» could have thought.
I see a bubble coming when there's a sector where, although the story is known by everyone on the planet, the sector is still rising (it shouldn't, because if everyone is a bull who is left to buy? It could only go down). This means the story is gathering momentum and entering in the outsider's mind. It is passing beyond the usual investor or trader, it's getting into the crowd's collective mind. For some reason the book is called «Extraordinary Popular Delusions & the Madness of Crowds». It's not called the «madness of investors», or «madness of traders». You can't understand the crowd behavior using investors or traders analytical tools.
I want to tell you a story: I used financial metrics to conclude internet stocks were very overvalued in 1998 and the beginning of 1999. But at the end of 1999 I concluded that it was a bubble and entered the market to buy everything I could on that sector and many stocks rose thousands of percentage points in the following months. Of course, they crashed after, it was a bubble, as we know today.
Now, think oil goes above $80 (options for December delivery are already trading considering oil will be $80 when at that time). Oil will be necessary for a very long time still, even if we get into new forms of energy, the global change takes many years, at least 5 to 10 years in the developed world. Everyone knows oil is a limited resource, and somewhere in the future I see a lot of people needing oil and there won't be enough for everyone, there's no time to build the needed capacity. What you get is a lot of people wanting and needing oil and just a few companies who have it, and those companies, in the publics mind, will be very valuable.
In this scenario, who cares about valuation? Who cares about fundamentals? It is a bubble right because it is not related to fundamentals, but with a story that penetrates the crowd's collective mind.
QuoteNow with investors being presented for what I consider an abundance of very attractive oil stocks at very low valuations why would they invest in high-risk penny stocks without earnings?
Medium and large cap stocks will rise a lot, something between 50 and 200%. Micro cap stocks will rise between 1000 and 2000%. It's how the bubble works, when the bull market is half way. From January 2000 until March 2000, which were the stocks that rose more? Cisco Systems? Amazon.com? Ebay? Yahoo? Or much smaller names, many that don't even exist today? The stocks mentioned rose 100% or so (the ones with «attractive» fundamentals), but many small and micro caps related to the internet with no value whatsoever rose thousands of percentage points.
How do you explain this? Madness of crowds my friend ...
Back to
AMEP.OB, the fever didn't caught steam yet, the moves from this stocks will probably last just about a month or two (the last month or two of the oil bubble), and perhaps we're still about 2 months away from that ... but I can feel it, I've seen it before and I will surely see it again.
"Needless to say, everyone already knows who will be the big winner this earnings season - energy stocks. The only thing of importance I could see in the tape is a true desire to get long energy ahead of the news".
-The Kirk Report.
Each week I keep adding on the dips.
3 News stories in 1 ;D
http://biz.yahoo.com/bw/050706/65289.html?.v=1
Up nicely on pre market.. Lets see what happens now.. glad I was fortunate enough to get back in yesterday
Oil tops $60 on shortage fears - morning news. This plus Amep.'s latest news = winner.
is it still OK to buy AMEP.OB or am i too late?
Quote from: mulder on July 06, 2005, 03:49:05 PM
is it still OK to buy AMEP.OB or am i too late?
I sure hope it's not too late - I bought at $0.019 like David!
patience.. Buy/hold and look at it again in September
AMEP.OB had no new technical information on the last session. We need a close above $0.017 for the chart to get short term bullish.
With the selling the stock had on Wednesday in the face of so many bullish news (but it hold with an 8% gain) it was strange to see it didn't go down yesterday. Let me rephrase that: it was a bullish thing AMEP.OB held flat yesterday when oil was down so much.
With a close above $0.017 we'll be set to fly. When we fly it will be 50% or more in a day. I think this won't take much longer to happen.
Someone please confirm this, but hasn't Amep redesigned their website very recently for the better?
One would assume a company such as this only has a website for the purpose of attracting investors.. Since they have done some window dressing and remodeling of the website lately that might be tipping off the hand of a anticipatory coordinated campaign to push the stock price.. maybe I'm reading too much into it..
http://www.americanenergyproduction.com/
I'm with you, TRUNK ;) Still holding.
Cheers.
From a fundamental standpoint, AMEP is making an announcement any day on the Nash 1-c well, which is completed. It is expected to be a nice producer with 'substantial' flow, ...and the daily rate is expected to be released soon. Another well being worked is in the final stages of completion, it is drilled at an angle in the Barnett (not horizontal), and could pssible be the biggest producer yet for AMEP.
Charles Bitters, President of American Energy Production Inc. stated, "After several days of delays obtaining a down-hole assembly's for the uni-draulics jet pump, Bend Arch Petroleum Inc. began successfully producing the Barnett Shale well on Monday. Management believes it will take a week to ten days for the well to stabilize and have consistent oil and natural gas production rates. However, initial indications point to positive results. After only four hours the well was producing substantial amounts of natural gas. We will post results once the well has had a chance to stabilize therefore giving a clearer picture as to the future of the Nash 1-C well."
The installation of the uni-draulics jet pump on the Nash 1-C well instead of a conventional pumping unit will move more oil and produced water from the wells bore faster and more efficiently than the conventional pumping unit.
AMEP is in the current process of making the 'Golden Cross'. BTW, the last time AMEP made the Golden Cross ot went from .02 to .14, before there was any production. AMEP gross revenues were about a half million last Q, next Q expected to increase again.
I have been adding more on dips of this stock. I will keep holding, it's a no brainer.
Just how unprofitable a venture would it be for me to consider removing a couple grand from my Scottrade IRA and opening a non-ira acc't w/it? This would be for the purpose of getting into penny stocks. Seeing I now have the advantage of this board I thought it just might work. What do some of you who have been around for awhile think of this? TIA!
Art,
The short version - only commit what you wouldn't mind losing and feel comfortable "playing" with :D
The slightly longer version - we should all have a specific lifelong gameplan for our financial well being - properly managing our debts, assets, income and responsibilities (family, etc) to work toward our life goals - bass boat, retirement, travel, college funds for the kids, vacation homes, lap dances, whatever.....the more we can eliminate debt and increase assets, the closer we are to our financial goals, but age is a factor - a 20 year old has more earning years to replace financial losses than a 50 year old, and more time to take advantage of compounding.....and the sooner we can achieve financial freedom, the more time we will have to enjoy it......freeing ira money for pennies, aside from any disbursement tax/penalty implications, should only be considered in light of your global financial situation, age, income, financial goals and comfort level....remember the gambler's saying of "don't bet what you can't afford to lose"....
As for actually playing the pennies, develop a sound trading plan (plan the trade), try paper trading if you haven't done pennies yet, realize some of the pitfalls like wild price fluctuations, really fast price movement, liquidity and trouble getting orders filled, then stick to your trading plan (trade the plan) - you'll stay in the game longer and have a better chance of making your accountant sweat over all those capital gains.. >:D
Pennies can be a blast, but make sure your financial situation is strong and this won't affect it....best wishes on being profitable. ;)
Al.
Nice comments on AMEP.OB and general strategies, thank you !
AMEP.OB must close above $0.017 to be short term bullish again. It is possible for the stock to come down to the ascending trendline around $0.011 and one must be prepared for that scenario: that's why I have only 3.33% in this micro cap oil related stock. The upside is enormous but it is a risky play. I'm waiting for an oil rush, a speculative bubble in this sector in the coming months. It will be a tide that lifts all ships - the light ships will rise the most.
Looks like we made the cut.
Quote from: saffeysite1 on July 11, 2005, 05:41:11 PM
Looks like we made the cut.
Not much volume on our climb over .017, but hey I won't complain- any old white candle makes me happy
AMEP.OB closed above $0.017 :-*
This happened on a day the oil price was down a bit. Accumulation phase seems to be ending. The stock is now ready to charge higher again, I believe.
After yesterday white candle with stronger volume AMEP.OB is officially in a short term bullish mode. We'll probably see a new strike to the descending blue trendline which today stands around $0.025.
Nice to see that AMEP.OB held the $0.017 micro support level. The short term trend is bullish, the next resistance line is standing today at $0.025.
The two consecutive hammers on AMEP.OB and the close above $0.017 suggest we'll probably have a rally on AMEP.OB shares in the next few days. I guess the stock just needs a little help from oil prices.
Another hammer on AMEP.OB, the third in a row. This one had higher volume, with more than 7,000,000 shares changing hands. It looks like AMEP.OB is rejecting prices much lower than $0.017 and it is just a matter of time for the stock to take off on a white marubozu.
Today's action is very promising.. 4 million shares traded in the first hour and up 8%.. She may just pop today although a gradual climb like we've had the past week would help us keep the gains easier.. Level II looks real strong eveybody bringing in bids at .018
That on a down day on oil ... it sure looks promising, I hope it keeps the promise until the end of the session. A decisive climb above $0.017 will probably take this stock to the next resistance around $0.025.
She is goin B A N A N A S ;D
Not that this is a good thing or that I should be rewarded for putting all of my eggs in 1 basket.. But AMEP is currently 70% of my portfolio at an avg price of .0153 >:D
trading at 0.0021 nice pick Dave Up 24 %
NEWS???? If not why this stcok is up????
any idea
Oil is bullish, that's why. We have hurricanes coming left and right, People are striking at oil fileds in Iraq. Mexic accounts for 8% total oil for US. Rigs closed due to storms = AMEP. in play.
Quote from: laksateho on July 18, 2005, 03:22:29 PM
NEWS???? If not why this stcok is up????
any idea
We are waiting for the news.. on the last press release we got this
"With respect to AMEP's wholly owned investee Bend Arch Petroleum Inc., Nash 1-C Barnett Shale well. Management has been testing several uni-draulics jet pump down-hole assemblies to gain optimal results.
The third jet assembly will be installed on Thursday July 8th and Bend Arch Petroleum should have results the week of July 12. Though initial results are positive Bend Arch Petroleum believes there can be improvements that will increase production rates" Since the results weren't released last week they should be any day now and give the stock a spike which it currently has got now.. .024 Yeah!
And people quit smiting me cause I have 70% in the stock.. I'm an adult and can make my own decisions.. I can afford to lose it and I did not suggest anybody else do the same as I did..
from the last news release we also got this..
"PRI has increased oil production from the Olmos formation on the four test wells by as much as 300% for the month of June. "
So the news is probably Tue or Weds and from the looks of it someone likes it..
but you can read the whole press release here from July 6th it has all the goodies http://biz.yahoo.com/bw/050706/65289.html?.v=1
Thanks guys, now just wonder how far it will go
Trunk I applauded you...think thats awesome but make sure you get paid...looks really strong, congrats to all holding. :o ;)
Up 42 %
0.025 reached finally
Congrats David - This is a learning experience!!!
Thanks Elite, I sold a little under half of my position between .0245 and .0247 .0248 and .0249 just incase nothing of it happens.. If this continues for a few days then I will be filthy rich ;D
My Pie looks much better now after letting some shares go.. Hope I won't second guess me sells tommorrow.. On a technichal standpoint if this one takes off again tommorrow on the high volume does it fall into the paramaters of a G Pattern?
Quote from: David Randolph on July 16, 2005, 02:38:18 PM
Another hammer on AMEP.OB, the third in a row. This one had higher volume, with more than 7,000,000 shares changing hands. It looks like AMEP.OB is rejecting prices much lower than $0.017 and it is just a matter of time for the stock to take off on a white marubozu.
David,
I don't know how you do it but sure am glad you do. I think we got our white marubozu today!
31mil volume today. For those about to rock! No smites here.
David was Dead on with the technichal anylasis on this one.. He even told us as soon as it decisively climbed over .017 it would run right up to .025.. Amazing
applaud saffey and trunk both, just dont worry about smites :)
Nice work David !
-Jeff-
So now we can look for the pps to break the .028 barrier giving us a double bottom formation. If that happens it is off to the mid .04s... ;D
Thanks for your comments :D
AMEP.OB made the expected white marubozu to the $0.025 level. Now, is it going to breakout to higher levels?
It looks like the answer is yes ! You see, when the stock came down it didn't quite make it to the support line around $0.011, we've had a lot of hammers suggesting bargain hunting (I don't know if AMEP.OB has any fundamental value, Michael says it doesn't, but that's not at all the motive why I bought this stock in the first place).
The fact that the stock wasn't able to hit support before it rose again through resistance tells me demand is stronger than supply. Also, volume didn't dry up on the way down, and volume this time is higher than on the prior advance phase.
If AMEP.OB closes today above $0.025 the technical target of that breakout is $0.044, so if the stock starts rising above $0.025 today expect another mighty powerful white candle.
What is going on with AMEP today?!? :o
Still no news on Nash C-1...
Wait for that..
One doesn't have to check price of oil, oil-related stocks are down. (At least all of mine are!)
::)
I guess this is a good time to add?
http://www.stockhouse.com/news/news.asp?newsid=2845450&tick=AMEP
American Energy Production, Inc. (OTCBB: AMEP) - Extraordinary volume yesterday and today. Yesterday's volume of 32,402,000 shares was the highest volume in more than thirty days. Today, volume is already about half that about one hour into the trading day as this alert is issued. American Energy Production Inc. recently announced its wholly owned investee, Production Resources Inc. posted positive testing results after 8 months of testing various procedures utilizing AMEP HOA 800. PRI discovered a method of well treatment that combines the utilization of heat along with AMEP HOA-800 in a chemical process that has returned positive results
I just added back to my position at .021 hopefully it can move back up from here and we we can get some positive news tommorrow or thursday to move the stock
Oil Holders Index: OIH is up nearly 2 dollars, :) There is lot of money to be made in oil.
already bought 50,000 shares at 0.02
Now OIH is up more than 3 $ :)
Now OIH is up more than 4 $
Heck should have bought OIH :D
I guess we are seeing a bubble in the making.
I have it with bubbles as with the universe; I don't understand how it started and I don't know when it will end. It is just a fact of life.
I have done a lot of thinking based on David, EliteG and others messages and, even though it is tempting, I am going to wait on the sideline:
I don't invest in something I don't understand and as always it is the one who turn off the light who pays for the party (that is unless the host is very drunk or very smart!)
I hope you guys are going to make tons of money.
I will try to see if I can afford an economy ticket to visit you on your remote tropical Island in the Indian Ocean.
Mike
The guy that might had bought half a tulip bulb many years ago if he hadn't heard about buffett ;D
AMEP is making me seasick! ;D
UP - down - UP -down ~~~~~~~~~~~
I wish it could just get it's act together and shoot upwards.
Today I tried not to watch it, but it still made for some nail-biting.
And tomorrow???
Cheers.
My Pie looks retarded again :D I Had to stock back up on the shares I sold at yesterdays close.. The stock decided that if you are going to profit wildly off of it you shall not have weak hands.. nice recovery looms well for tommorrow
My Retarded Pie says I will either get filthy rich or fail trying
Yes, Michael, bubbles are for speculators, not for investors like you or Buffet. There's no danger in trading a bubble, if one knows it is a bubble ! (of course, the vast majority doesn't know that, or it wouldn't work)
Anyway, AMEP.OB made an amazing comeback yesterday on yet stronger volume. I don't know but I believe I did mentioned there was a resistance level at $0.025. It looks like the bears gave a fight at the resistance and profit taking kicked in.
But, profit taking was met by huge demand that came from the sidelines and AMEP.OB, which was pronounced short term dead, came back to like with a vengeance, recovering from a 17% intraday fall to a close unchanged.
I'm getting more and more convinced, in fact I'm almost absolutely sure, this stock will breakout from the $0.025 level and reach $0.045, the technical target of the hypothetical breakout, over the short to medium term (scroll down to see both charts).
Excellent analysis David. Applaud Again
Hi David,
There is one thing that puzzles me ??? This bubble is happening at the same time as the oil price is falling.
It could obviously be a classic inverted bubble with resulting hakumi kick ups ::) but it could also be there is a fundamental story here. After all the company has issued a couple of bullish press releases lately. I think I will use the weekend to try to understand the company.
That would be great Michael ! You're right, AMEP.OB is getting interest from investors even as oil price declines. But now it looks clear the stock needs motivation from a rising oil price to break the $0.025 resistance.
That will probably happen soon.
Just added below .019.
An opportunity to hold for the future.
-Jeff-
Also initiated position again
In at .019. hope this ones a winner
American Energy Production Inc. (AMEP) holds steady after it announced its wholly owned investee, Production Resources Inc. posted positive testing results after 8 months of testing various procedures utilizing AMEP HOA 800. PRI discovered a method of well treatment that combines the utilization of heat along with AMEP HOA-800 in a chemical process that has returned positive results. PRI has increased oil production from the Olmos formation on the four test wells by as much as 300% for the month of June. Management now plans on expanding the testing area to an additional 10 oil wells in the next 30 to 45 days.
I have bought more... ;)
Good morning !
la-onda, can you please tell me the source of that news, I couldn't find it on marketwatch.com. Thank you.
Bears were successful in defending the resistance line on AMEP.OB and now the stock is coming back down to test support again. Technically it is important for the stock not to close below $0.017 and start attacking resistance again. I believe this is what will happen and ultimately the stock will break the $0.025 area and shoot up to the $0.045 short term target.
that one is old news. From Wednesday July 6, 8:01 am
Like what I am seeing with this stock. I got in first several days ago in the .016 range and added at .0188 and .0186 today... This stock is showing some strength!!!
This could get fun pretty quick!!!!!
Thanks for your posts, laksateho and aitech61 :)
AMEP.OB made a small hammer on candlestick terms, which is a minor short term trend inversion signal. Perhaps 2 more hammers and we get a 40% rise like happened last Monday.
Support for AMEP.OB is $0.017 and resistance is $0.025.
The stock did rally intraday, but the advance fizzled at the end of the session. The chart wasn't ready in candlestick terms. More ready now. AMEP.OB will punch so much that resistance at $0.025 that it will ultimately break it, just a matter of time in my opinion. When it breaks $0.045 will be seen in the short term.
David,
When it punches through and gets to the .045 is the plan to sell at the .045 or hold for the bigger run with the oil bubble looming?
basanlas
I'll analyse it when and if it happens, but my plan is not to sell near those levels, but much higher.
One hammer today. Two more to go, then take off.
saffeysite said it all, another hammer today on AMEP.OB, and we know, from past experience, what that means: a powerful white marubozu is in the making !
Starting from an higher base it is possible to break through the $0.025 resistance level, we'll see.
Holding AMEP.OB for the medium term.
Added more :)
Nothing new on AMEP.OB yesterday, another day with a tail behind. Support is at $0.0175, resistance at $0.025.
Could this be day for a turnaround ?
Good morning !
Today I'm very late on the updates because of a general blackout on the internet access where I live. I've came to Ramsburg's house to do this.
Ok, here we go ...
AMEP.OB made a sell off yesterday probably because major oil companies did too, on earnings releases. Nothing that compromises the bullish trend on the sector.
Ascending support line for AMEP.OB today comes at $0.0177.
House passes big energy bill
By H. JOSEF HEBERT Associated Press Writer
http://cnews.canoe.ca/CNEWS/TechNews/Other/2005/07/29/1152474.html
I added today..... .0176 & .0178
I can only see big positives for AMEP from this bill. Also you might notice in the article that the bill does little to reduce the price of oil or so opponents say.. The oil industry gets breaks galore to enhance our domestic production of energy.....
This has AMEP written all over it... Randolph this IMHO adds to that bubble theory you have been talking about. The small boys will surely start seeing an abudance of investor attention with federal funds on the way. I agree $80 oil is on the way but with this bill it may not need to get there to start seeing some major moves......
Wow! Interesting recovery.. popped from .0175 to .0195 in no time flat after had been struggling all day.. Still Need more volume though to confirm the reversal
I have added more at 0.0195.
Looking for 0.025 resistance level
AMEP.OB touched exactly on support and bounced nicely. Were going to be on this ping pong between support and resistance levels until the stock decisively breaks one or another.
Considering fundamentals (that is, the oil price and the US government strong support for national oil production), I believe AMEP.OB will, in the end, break the $0.025 resistance level on the upside, and make a quick run to the $0.045 technical target of the breakout.
Mostly green in the portfolio today.
I think AMEP is ready to go!! Patience is paying off ( I hope)
Quote from: basanlas on August 01, 2005, 09:46:11 AM
Mostly green in th eprotfolio today.
I think AMEP is ready to go!! Patience is paying off ( I hope)
Agreed- Now If we can just get that killer news release Tommorrow or Weds with the Well production numbers we have been waiting on. then She will really take us for a flight
Oil closed at a new all time closing high and AMEP.OB continued to move towards resistance, away from support.
Support for tomorrow will be at $0.018 and resistance at $0.025. Where will AMEP.OB be quoted when oil reaches $80 a barrel?
This penny stock is increasing volume day by day, someday it will explode on the upside.
;)
American Energy Production Inc. Announces Success on Re-Start of Uni-Draulics Jet Pump on Bend Arch Petroleum Inc. Nash 1-C Barnett Shale Well
Tuesday August 2, 9:00 am ET
MINERAL WELLS, Texas--(BUSINESS WIRE)--Aug. 2, 2005--American Energy Production Inc. (OTCBB:AMEP - News) announced today its wholly owned investee Bend Arch Petroleum Inc. began re-start operations of a uni-draulics jet pump on the Nash 1-C Barnett Shale well.
Charles Bitters, President of American Energy Production Inc. stated, "Bend Arch Petroleum Inc. began successfully producing the Barnett Shale well on Friday, July 29, after exchanging the complete down hole jet assembly and production tubing. The Nash 1-C is still not stabilized but on Monday August 1, the well produced in excess of 20 barrels of high gravity oil and 100,000/cubic feet of natural gas. At today's market price of $60.00/barrel for oil and $8.00/mcf of natural gas this would be approximately $1600.00/day or $48,000.00/month or $570,000.00/year gross revenue. This will add a very nice piece to the Bend Arch Production Inc. income. The company will post more results once the well has a chance to stabilize therefore giving a clearer picture as to the future of the Nash 1-C well."
The installation of the uni-draulics jet pump on the Nash 1-C well instead of a conventional pumping unit will move more oil and produced water from the well bore faster and more efficiently than the conventional pumping unit.
Charles Bitters also stated, "Bend Arch Petroleum Inc. has accumulated over 7,000 acres of leases that have potential Barnett Shale production. Oil America Group Inc. of Dallas, Texas another 100% owned investee of AMEP plan to offer drilling partnerships to potential investors to drill Barnett Shale wells on the above mentioned properties in the near future. Oil America Group Inc. will begin offering these partnerships in the next two weeks. For more information contact Joe Christopher at Oil America Group Inc."
The preliminary well numbers are finally here.. I'm sure the market will like the report especially with the higher share price base to move up from here.. lets break that ascending triangle!
Thanks for posting the good news la-onda ;)
Technically AMEP.OB made an early morning rally to the $0.025 resistance level and then pulled back. Volume was pretty solid, of 22 million shares.
Something's got give this month, the support or the resistance. I bet, on volume, chart pattern behavior and oil price fundamentals, the resistance will break.
For today support will be at $0.0182 and resistance stands at $0.025.
AMEP.OB is still stuck between support and resistance lines. Support for today will be at $0.0185, resistance at the usual $0.025.
AMEP.OB clearly needs oil to break to new highs for it to break the resistance too.
The support mentioned was the exact low on AMEP.OB, before a minor recovery. The stock is technically perfect. I'm a bit afraid this breaks down you know, the rallies to resistance are being made with lower and lower volumes.
I won't sell anyway, because with such a low market cap I don't believe this stock won't push higher (a lot higher), with the current and upcoming bubble in oil prices, and with the favorable environment in Washington for national oil production.
Support for today is $0.0186, resistance $0.0249.
On the dips to low resistance I continue to accumulate. Oil and NG is no where near a top. I wouldn't be surprised to see the $80 level reached by years end.. NG is continuing to go up as well. NG will not experience its dip in August this time around. The summer heat has taken care of that....
China and India still in pursuit of the Wests ways seeing more and more vehicles on the road. The hurricane season is expected to be bad again this season. Any glitches in production and up oil goes.
IMHO anything under 2 cents is a major steal considering the stock traded over .05 cents last year with much cheaper oil prices. We could easily see a shareprice over 10 cents and form a base from there for additional upward momentum!!!
We shall see!!!!!
Thanks for your post aitech61 :)
AMEP.OB is still near support, this thing doesn't have much more time to decide: up a lot or down a little (I don't believe AMEP can go down a lot with the speculation around oil prices).
Even if the stock breaks the short term ascending trendline I will continue to hold it.
My bet is this stock will go up tenfold as oil reaches $80 a barrel and I'm willing to take some risk for this outcome to happen. Though I have just 3.33% of the 3 SOF Portfolio in it.
Have to read this excellent article about the Barnett Shale right in AMEP's own backyard
http://www.aapg.org/explorer/2002/07jul/barnett_shale.cfm
Thanks for the article TRUNK, very interesting indeed.
Regarding AMEP.OB, I was afraid this thing could happen. The stock broke slightly the ascending trendline, putting me and all other technical traders in doubt. But, if we consider after hours trading where more than 1 million shares of AMEP.OB were traded, the stock closed up 4%, clearly above the ascending trendline.
Yesterday I've made a mistake, selling ELN too soon, because of a milimmetrical break of the ascending trendline. I'm not going to do this mistake again, so I'll wait for a more definitive technical signal from AMEP.OB.
With oil pushing higher above $64 it doesn't make any sense for AMEP.OB to be down. I still believe AMEP.OB will be up 5 or 10 fold if oil makes it to $80. And I'm willing to take some risk to see if this outcome prevails, after all, I have just 3.33% of capital on this penny stock.
Still nothing definitive on the technical front for AMEP.OB. NY Crude futures closed at $63 a barrel and there's a bull market in oil.
I believe it is just a matter of time for AMEP.OB to push higher above the all important resistance level at $0.025. I'll hold the stock through tomorrow's session.
I didn't mind todays action so much. I am actually looking to load the truck at the 50 dma (.0174). I doubt it gets there but will have powder allocated for it. The 13dma crossed over the 50dma in mid June and it is not unusual to see a daily test of the 50dma.
Actually I have, in the past, made good money riding the bounce then propelling to higher highs (for AMEP to break through that .025 resistance). Oil prices will be a one of the major catalysts for this. I will get concerned if it dips below the 50dma on heavy volume. A quick crossover will not concern me..
If this was last year I may be a little more concerned. This year though, with the momentum of oil prices on an upward trend along with AMEP's latest events, I look at this as an opportunity. The news from July 6 and August 2 was quite positive especially after the new energy legislation being signed into law. Improving existing well production will be a major emphasis of many a oil producer out there.
Patience is the key to huge rewards on stocks like AMEP, while the wait may not be so long!! After the super PR's of July 6th and August 2, the next good PR could send AMEP off to the races.
We shall see!!!!
Press Release Source: American Energy Production Inc.
American Energy Production Inc. Announces Success on Re-Start of Uni-Draulics Jet Pump on Bend Arch Petroleum Inc. Nash 1-C Barnett Shale Well
Tuesday August 2, 9:00 am ET
http://biz.yahoo.com/bw/050802/25312.html?.v=1
American Energy Production Inc. Announces Positive Testing Results with AMEP HOA-800
Wednesday July 6, 8:01 am ET
http://biz.yahoo.com/bw/050706/65289.html?.v=1
Hope your right Aitech.. Amep is currenly the only stock I own.. 75% in Amep and 25% Cash
Call it intuition or call it stupidity, but I'd like to think I have a clue >:D
The buyers didn't hang around too long. Wonder what it's going to take to get this one moving. Shouldn't take $80 a barrell to see upward movement in this one.
Stocks like AMEP explodes, may be to either side.
With crude climbing, you may see gains like you would have seen on other big penny movers. Can't predict, but once the only performing stocks in mkt are oil and oil related you will find every tom, dick and harry flocking to them. Hope they [include me also] have not already done so. :)
Natural Gas has been going through the roof.. currently at 9.16 and no upward resistance and could move above $10 in a week or two
Oil $65 a barrel..
Anyday waiting for that pop to break .025 resistance this time
I am with you Trunk. I think when we break the .025 resistance it will be with a vengeance.
IMHO it is all just a matter of time...
I have been holding AMEP for as long as it has been on 3SOF, and I'm (to put it mildly :( ) getting a bit impatient with it.
Could the reason for the lack of movement be the relation to this:
http://www.timesonline.co.uk/article/0,,3-1727400,00.html
But maybe with the rising oil-prices, things will finally begin to happen with little AMEP...
"AP
Crude Futures Hit Record $65.19 in Asia
Thursday August 11, 2:00 am ET
By Gillian Wong, Associated Press Writer
Crude Futures Hit Record $65.19 a Barrel in Asian Trading on Gasoline Supply Fears
SINGAPORE (AP) -- Oil prices rose to a new high of $65.19 in Asian trading Thursday after the U.S. midweek inventories report showed a decline in gasoline stocks and amid persistent concerns that a string of refinery shutdowns in the U.S. will make it difficult for gasoline supplies to meet peak summer demand.
ADVERTISEMENT
Midmorning in Singapore, light, sweet crude rose 29 cents to $65.19 a barrel in Asian electronic trading on the New York Mercantile Exchange. On Wednesday, the contract rose $1.83 to close at $64.90 a barrel, after climbing to an intraday $65 high."
also still holding
updated chart
Quote from: cumulina on August 11, 2005, 02:31:36 AM
Could the reason for the lack of movement be the relation to this:
http://www.timesonline.co.uk/article/0,,3-1727400,00.html
Thats a different AMEP- That one provided Oil in the UN oil for Food scheme, but that AMEP is located in Panama, and called African Middle East Petroleum (AMEP) and is run by former head of the Un Boutrous Boutrous Gali's family, Our AMEP is called American Energy Products and run by Charles Bitters..
Oh........ :D
Thank you, TRUNK.
I don't get it, oil is up why this stock still red??? any idea??
could be the Nash 1-C Barnett Shale Well having problem??
Don't wurry ;D I sold mine today, (with almost 20% loss) so now it should start moving up!
Good luck to those still holding.
I still feel this stock is going to produce some nice returns. Just requires patience. We break through some resistance with volume downwards and I will re-evaluate. I believe there are forces that be that are accumulating this stock. Oil is as bullish as it gets and those companies having leases on proven ground of oil reserves and natural gas are going to be brought along for the ride in the bull market. Just a matter of time.
I like AMEP's, for lack of a better term, technology for improving well production.
There are many positives here which keep me quite optimistic...
We shall see!!!!!!
Heck No, I'm not selling- besides I bought all of my shares at .0132 .014 .015 and .016 sold a bunch several times at .0199 .0245 and others.. I've made out like a bandit on this stock in the past and it is currently 75% of my portfolio.. I am very comfortable with this stock and quite hopeful it will have many more days in the sun
Amep has proven itself to me that it is very easily capable of exploding to the upside on any whim and it only walks on the downside with tons of liquidity to get out as you please.. Always Lots of interest from buyers when this thing falls.. in short the explosive Rewards here far outweigh the conservative risk.
AMEP is much more than just a Microcap Oil Play, I hate to say this, but it is also a play on the 3stocksonfire website as well.. The more successful 3stocksonfire becomes the more people are exposed to this play.. New Members everyday, New exposure everyday.. and I'm sure the .02 cents oil stock is the most appealing to the average investor. I'm not sure the level of effect 3stocksonfire has in supporting the share price, but all exposure helps
Pretty simple, maybe
Trunk I hope you are right. I am not holding this stock but guys here have waited quite long for the fruit. With crude sky rocketing I assume I will soon be congratulating you on 100% gain. Goodluck.
lol.. Nice Icon Stocky..
paid over $60 to fill up the tank yesterday here in Atlanta, and Atlanta always has the cheapest pump prices in the nation.. that tank will last me 2 or 3 days at the most :(
Damn Land Rover needs the premium stuff and then gets 12 mpg... Who the hell sold me this Truck and why would they make something so uneconimical?..
I am unhappy about my own camry gulping 40$ everytime it happens to be at AM/PM. Though owning VLO and co. gives me slight satisfaction that I am adding to the EPS of those big guys.
Well, as usual, very interesting and amusement posts on AMEP.OB. TRUNK clarified that the AMEP on cumulina's article wasn't the same we're dealing here.
It's good to be back on the daily updates :D, but I had a bug on my database and needed to spend the whole Saturday building it up again (of course, the computer did it, not me, I was still in bed getting better). Because of this the chart is a bit different than the usual, since these are all new charts that I needed to annotate again.
Anyway, I'm still holding AMEP.OB, as you can always check on the 3 Stocks on Fire portfolio page, which you can find on the lateral menu of www.3stocksonfire.org.
The stock did break the ascending support on the downside, but that doesn't worry me much, as I've said in previous analysis. That ascending trendline was too steep. We all know oil is rising a lot, as expected, but that didn't fuel AMEP stock. That could be (and it is) a cause for concern, since if it doesn't go up with this kind of market in oil, when will it go up? Another thinking we could make was «is there something wrong with the company, and that's the explanation why it doesn't go up with oil?»
These are all legitimate thoughts, but from my market experience I believe this is not the case with AMEP. What's going on with AMEP.OB is that it is a penny stock, a micro cap stock. Penny stocks don't change daily with macro developments, and certainly not with the general market. They have a life of their own.
AMEP's thread is a very long one, but somewhere on this thread I've said that 50% of the move in a bull market is made in 10% of the time, and frequently that's the speculative bubble time. Now, these micro caps are left on the floor until just about a couple of months or weeks before the market top. They don't discount developments. They're forgotten. That's why they suddenly rise 5 or 10 fold or more, and that's the best sign you can get that the bull market (in this case the speculative bubble in oil) is near its end.
When all big and medium size caps are fully priced (or completely overpriced), investors turn, all at the same time, to these forgotten stocks, they're cleaning the dish (I don't know if you have this expression in English, but you know what I mean).
So, AMEP might be able to just stand here for some weeks or months and then rise 1000% in just 1 week or two. That's how it works.
But, no stock pick or stock strategy, being it very small or not, should be on a portfolio without a safety net. So, even believing this stock will go up a lot, I don't want to see it closing below the 50 day moving average, which is a good support suggested by aitech61 (I'll applaud him).
Results for the second quarter were out today after the close. Nothing special, of course being a BDC (Business Development Company) AMEP.OB still has no revenues, but I believe it will.
Net loss for the 6 months ending June 30, 2005, was reduced from $4,003,511 in 2004 to $661,246 this year.
Reading the report (or some of it, if I was to read it all it would take me all night) I understand that the medium term success of the company is not only connected to oil prices but also to the ability of its subsidiaries to actually produce and sell oil.
Off course, the higher the oil price the better the prospects for the company when it starts selling oil. But it must start, at least a little, before the bubble bursts.
We'll see ... in the meantime I'll hold the stock as long as it closes above the 50 day moving average, which tomorrow will stand at $0.0175.
AMEP 10Q NOTES, highlights, & comments from the full 10Q (additional notes)
I read the complete full version of the 10QSB several times and took notes. The following are my personal highlights, notes, and comments; refer to the 10Q and/or the AMEP CEO Charles Bitters for any further details and/or explanations:
Outstanding shares as of end of reporting Q: 302,030, 234
Last reporting Q was 298,030,234
An increase of 4 M shares.
Note: See 10Q re company converting to a BDC(Business Development Company) when evaluating the following sections:
AMEP expenses:
($114,822) total loss from operations
($91,761) total loss other expenses (interest expense)
Total Net Loss AMEP ($206,583) ... year ago ($702,071)
Net cashed used in operating activities: ($201,663) ...
year ago ($261,143)
Net cash used in investing activities:
($136,556) ... Year ago ($1,044,115)
Cost and fair value of AMEP investees: $2,733,342
Refer to 10Q; the 'fair value'* is based on the cost of the investee to AMEP (much is the original 'historical' cost)...
Production Resources Inc. (PRI) ... $1,284,598 (historical cost)
Oil America Group Inc. (OAGI) ...... $117,000( bought with 'restricted 144' shares)
Bend Arch Petroleum Inc. (BAPI).....$1,256,188
AMEP strategic Investments INC. .... $75,556
Total AMEP Investments in the investees: ...$2,733,342 (The four investees are wholly owned by AMEP).
*Consider the potential 'fair value' adjustment by an independent O&NG engineer, when AMEP can show a profit from just a few wells, of the potential of many on the 7,000 acres over the Barnett, plus the 193 PRI wells being brought back onto production with increases using HOA-800.
Do you think an Oil and NG company with 7,000 acres in the Barnett(BAPI) + 193 (PRI) oil wells being re-worked and put back into production + the current 2 Million in annual O&NG revenues (does not count the est $570,000 annual revenues from the vertical NASH 1-c well recently completed)is fair valued at $2,733,342? Add in Crane Carrier Potable Rig + NG compressors + Oil storage tanks + surface and downhole pumps + miles of owned sales natural gas lines ??? ...$2,733,342 is fair value?? A potentially big Upside advantage, IMHO.
Debt as of end of Q was ($18,153)lease payable
Bank notes payable ($17,464) [dated Mar 2001, for the previous shell company's computer equipment]
Bank loan for auto ($4,818) [final payment due Feb 2006]
Total convertible Debentures due Dec 1, 2005 ($335,665) [less $134,335 debt discount]
Total Debt: ($367,100)
($400,000) CD (before debt discount)
($22,284) total bank loans (auto + previous shell Co note)
($18,153) lease payable
Total: ($367,100), ....ie ($440,435) less $64,335 debt discount
10Q note concerning the BDC(Business Development Company), when AMEP becomes profitable(less than a year to profitability per the CEO note on the web site), ...per the 10Q:
98% of AMEP income will be distributed on a quarterly basis to AMEP stockholders (both income and net capital gains).
Most of the 10Q is old news, as the knowing posters have noted on the RB thread. Considering the quarterly report in it's entirety, it was a good report. IMHO, the next two Qs will show a turn around based on O&NG revenues with the additional new wells increasing the production; starting with the successful NASH 1-c, followed by two horizontal wells.
The most important activity for AMEP and it's shareholders will be the results of the next two cheap-to-drill re-entries on good heavy 5 1/2" casing that will turn horizontal when it reaches the Barnett formation. These two well will be deepened into the Barnett, and will likely be high volume horizontal wells of considerable frac length in the pay zone. The 'test' Nash 1-C well drilled vertically into the Barnett formation was a big success, when considering the following two horizontal wells will be much higher producers, per the independent DD on the big volume advantage of horizontal over vertical drilled wells.
From the Nash announcement (vertical well):
"At today's market price of $60.00/barrel for oil and $8.00/mcf of natural gas this would be approximately $1600.00/day or $48,000.00/month or $570,000.00/year gross revenue."
It is very likely IMHO, that these next two potentially higher producing horizontal wells that AMEP will be drilling, plus the Nash, will put AMEP over the top, ...and profitable. It is important to note that AMEP has 100% of the NWI (net working interest) on these next two horizontals going into the prolific Barnett formation. It is also extremely important to note, that AMEP is getting quantities of Oil with the NG; most Barnett wells are NG producers only per the extensive DD on Barnett wells. AMEP is very, very fortunate to have this type of highly desirable Barnett acerage (7,000 acres) that produces high grade Oil with the Natural Gas.
GL all AMEP longs, the next two wells will be of high interest, and make the patience pay off IMVHO.
BTW, I appreciate the technicals posted here by David Randolph and others.
... %^ greeneyedhawk
thanks greeneyedhawk! that was awesome, not sure how you got so much info on the company, but incredible dd and applauded your first post.
Indeed, well done. Applaud.
Nice chart should be nice gainer by yearend.
XX
Not a good look for the opening (.0178/.0179). May hit David's exit point, or perhaps take a nice bounce off that point and finally start an upward trend. This stock is definitely trying my patience. Hanging in there for now.
Quote from: atalltexan on August 16, 2005, 09:26:24 AM
This stock is definitely trying my patience. Hanging in there for now.
Mine too and I have it in both my accounts.
P
Shaking out the weak hands is one thing, but there must some underling issue with this company that we're not seeing for it to continue to fall in the face of record oil prices.
I'm holding all of mine.. Nite has been buying everything up.. just taking out the trash, but I'm willing to wait longer term
Ugly selloff, but looking for a pivot bounce point $0.013
Couldn't resist. Bought additional at .0138. Will balance out my cost on this holding.
Intraday bounced $0.013 (bottom white line) and broke downtrend line (upper white line). Lets see how rest of the day this behaves, probably a good buy Texan.
Great graph AussieTrader!
What soft are you using?
It's quotetracker, I believe. It's a free software, I love it too. Go to www.quotetracker.com and download if you want (I believe aussie has some paid features).
If AMEP.OB could close above $0.0175 this would be an amazing reversal day ... we'll see, I'll come to evaluate by the close.
Dave, thanks for the info about quotetracker!
Bye the way, hoe much do you pay per trade for every trade made for 3SOF?
Do you have a account in USA?
AMEP RTQ .0163, MM nicely cleaned out the weak hands and tight stop losses, a healthy move for the next leg up.
Those seeking forward revenue guidance on the AMEP RB board for wells scheduled to be drilled, and/or re-worked for production in this Q and future Qs, do not understand this O&NG business. You cannot make O&NG revenue projections until a well is completed and stabilized on the production line for numbers.
Those holding strong, or adding shares, until the next two 100% NWI horizontal wells are completed will have their patience highly rewarded. The successful vertical Nash well, plus the two horizontal wells scheduled for drilling, will give AMEP the numbers to be profitable, IMVHO and the DD.
GL all AMEP longs.
... %^ greeneyedhawk
Sold AMEP.OB @ 0.0153
David will update this trade later.
best regards,
Quote from: phabrux on August 16, 2005, 11:08:00 AM
Dave, thanks for the info about quotetracker!
Bye the way, hoe much do you pay per trade for every trade made for 3SOF?
Do you have a account in USA?
I have several accounts. One in Portugal, another with www.lowtrades.com and yet another with www.tradingdirect.com. Some trades are made through Ameritrade too (Ramsburg has an account there). I pay $10 for every trade made for the 3 SOF.
Quote from: Ramsburg on August 16, 2005, 04:03:25 PM
Sold AMEP.OB @ 0.0153
David will update this trade later.
best regards,
According to plan, there was nothing I could do but to sell the stock. I said:
QuoteWe'll see ... in the meantime I'll hold the stock as long as it closes above the 50 day moving average, which tomorrow will stand at $0.0175.
So many pages of work and thoughts ended up with a 22% loss on AMEP.OB (I'm happy I had just 3.33% of total capital invested in this penny stock). It's sad, but hey, who said the market was fair? :P
I've had some warnings this trade wouldn't work out:
1) Volume was getting weaker and weaker on each attempt at the $0.025 resistance level.
2) Oil was up and the stock was not.
3) Break of the ascending trendline.
Anyone going back to read this thread will notice my wife was right all the time, it looks like her place isn't just the kitchen ;D
I took my loss, my lesson and paid for it, now it's time to move on to another speculative venture. Good luck to those who continue to own the stock.
Hold up! What Am I Missing here?
approximately $409,775 for the 2nd quarter in revenues with just $42 oil
now oil is running $66 a barrel so conservatively revenues will be 2.5 million + for the year
Amep Market Cap is just 4.5 Million at todays closing price...
We got word that within a week they are starting 3 new wells... ?? surely this will bring some nice press releases.
Obviously the market didn't like the 10Q and the production numbers, but I don't think many people read.. just reacted to the market and a penny stock does what a penny stock does
I'm not selling.. I do think by the end of the year we will still hit 4 cents a share.. 1 killer news release and in this oil climate thats all she wrote..
In the meantime we could even return back to a penny, but I'm not selling...
NG continues to make new record highs. Now over $10 for: Nov, Dec, Jan, Feb, Mar.
DrillBit's projections of double digits for NG across the board is becoming a reality. These record NG and Oil prices are helping AMEP to become profitable in a considerable way. CB could not have picked a better time in history to bring a start up Oil & NG company to profitability. Barnett Shale NG wells produce 20-30 years or more per independent DD. AMEP has 7,000 acres over a 100% blanket covering of the highly prolific Barnett Shale formation. AMEP is very fortunate to also have high grade oil flowing out of it's Barnett wells. AMEP's wholly owned Bend Arch will next be drilling it's first two horizontal wells in the Barnett. Wholly owned OAG will add three more. The next two horizontals will likely make AMEP profitable, if you consider that these horizontal wells should produce a nice multiple of the vertical Nash 1-c well just completed in the Barnett.
Nash 1-c results: "At today's market price of $60.00/barrel for oil and $8.00/mcf of natural gas this would be approximately $1600.00/day or $48,000.00/month or $570,000.00/year gross revenue."
GL all AMEP longs.
... %^ greeneyedhawk
Commodity Futures Price Quotes For
NYMEX Henry Hub Natural Gas
Commodity market prices and quotes are updated continuously during market hours.
(Price quotes for NYMEX Henry Hub Natural Gas delayed at least 30 minutes as per exchange requirements)
Month
Click for chart Session Pr.Day Options
Open High Low Last Time Sett Chg Vol Ticks Sett OpInt
Sep 05 9.54 9.88 9.44 9.76 14:47 9.752 +0.212 25775 39255 9.54 58207 Call Put
Oct 05 9.61 9.88 9.461 9.78 14:46 9.779 +0.218 16065 9480 9.561 87978 Call Put
Nov 05 9.95 10.22 9.84 10.12 14:45 10.124 +0.191 4637 3762 9.933 53856 Call Put
Dec 05 10.32 10.55 10.225 10.5 14:27 10.479 +0.177 3650 3338 10.302 35352 Call Put
Jan 06 10.59 10.81 10.495 10.71 14:25 10.734 +0.166 2384 3452 10.568 32925 Call Put
Feb 06 10.57 10.73 10.46 10.67 14:47 10.699 +0.161 1210 1556 10.538 20419 Call Put
Mar 06 10.32 10.53 10.235 10.43 14:29 10.463 +0.161 4733 1939 10.302 40537 Call Put
Apr 06 8.81 8.95 8.77 8.83 14:21 8.863 +0.091 2265 1175 8.772 20785 Call Put
May 06 8.7 8.7 8.65 8.65 14:28 8.631 +0.084 794 692 8.547 20303 Call Put
Jun 06 8.73 8.73 8.53 8.68 14:28 8.662 +0.084 18 545 8.578 7266 Call Put
Jul 06 8.77 8.77 8.57 8.73 14:29 8.706 +0.083 7 39 8.623 12055 Call Put
Aug 06 8.81 8.81 8.76 8.76 14:28 8.745 +0.083 93 80 8.662 10477 Call Put
Sep 06 8.79 8.79 8.71 8.75 14:01 8.72 +0.08 11 278 8.64 9006 Call Put
Oct 06 8.72 8.81 8.69 8.71 14:22 8.745 +0.078 825 292 8.667 19512 Call Put
Nov 06 9.18 9.18 9.06 9.07 13:05 9.105 +0.078 66 171 9.027 9182 Call Put
Dec 06 9.46 9.46 9.46 9.46 10:53 9.445 +0.083 175 174 9.362 9163 Call Put
Jan 07 9.73 9.73 9.655 9.655 14:24 9.695 +0.088 39 103 9.607 10040 Call Put
Feb 07 - 9.635 9.7 9.58 11:10 9.68 +0.088 0 51 9.592 2926 Call Put
Mar 07 9.5 9.5 9.48 9.48 13:23 9.495 +0.088 200 2 9.407 7478 Call Put
Jun 07 7.977 7.977 7.977 7.977 11:49 8.01 +0.063 0 54 7.947 2355 Call Put
Dec 07 - - - 8.8 - 8.8 +0.058 0 27 8.742 4171 Call Put
FYI... %^ greeneyedhawk
Symbol: Markets Detailed Quote Depth/Level II Options Charts News Profile Filings Historical Symbol Lookup powered by
quotemedia.com
History For American Energy Production Inc Aug 17 12:48 AM EDT
Date Open High Low Close Volume Change Change %
08/16/05 0.018 0.155 0.013 0.015 32,274,700 0.003 -16.393%
08/15/05 0.019 0.019 0.018 0.018 7,392,900 0.000 -2.660%
08/12/05 0.018 0.019 0.018 0.019 10,461,300 0.000 2.174%
08/11/05 0.019 0.019 0.018 0.018 8,570,800 0.001 -3.158%
08/10/05 0.019 0.019 0.019 0.019 8,923,700 0.000 1.604%
08/09/05 0.019 0.019 0.018 0.019 9,860,800 0.000 1.081%
why is highest for today is 0.155? is this real or somebody just pressed a wrong button?
FYI AMEP:
American Energy Production Inc. Announces 2nd Qtr. Production Revenues for Two Investees
Tuesday , August 16, 2005 09:00 ET
MINERAL WELLS, Texas, Aug 16, 2005 (BUSINESS WIRE) --American Energy Production Inc. (OTCBB:AMEP) announced today the 2nd quarter revenues of its two wholly owned investees, Production Resources Inc. and Bend Arch Petroleum Inc.
American Energy Production Inc. investee, Production Resources Inc., sold approximately 1,274 barrels of oil in the 2nd quarter for total net estimated oil revenue of $63,695.
Bend Arch Petroleum Inc., in the 2nd quarter, sold approximately 3,341 barrels of oil with estimated revenues of $157,090 and natural gas sales of 31,604 MCF with approximate gross revenue of $189,078. Total gross revenues for Bend Arch Petroleum and Production Resources Inc. totaled approximately $409,775 for the 2nd quarter.
"Production revenues for the 2nd quarter were off a little from the 1st quarter due to prices of oil and natural gas in April and May when the oil posted price was only $42.00/bbl., and natural gas spot prices were around $4.50/MCF. Also, the natural gas purchasers had to do maintenance repair work on the gas transportation line and Bend Arch had to shut the oil and gas wells in for almost a week," stated Charles Bitters, president of American Energy Production Inc.
Charles Bitters, also stated, "Oil America Group is within one week of starting its second Limited Drilling Partnership. Joe Christopher, president of Oil America Group Corp. is very excited about the prospects in the 3-well Horizontal Barnett Shale Project." For more information contact
[email protected] or 972-386-0601.
Statements contained in this release, which are not historical facts, may be considered "forward-looking statements" and are based on current expectations and the current economic environment. We caution the reader that such forward-looking statements are not guarantees of future performance. Unknown risks, uncertainties, as well as other uncontrollable or unknown factors could cause actual results to materially differ from the result, performance, or expectations expressed or implied by such forward-looking statements.
After yesterday's downward "adjustment", seems to have made a new base around .0150 and is climbing slowly but steadily. Added to my holdings yesterday on dip.
I didn't like the action today at all....
After buying yesterday at .0135 and swing trading selling and reducing my position, I thought I would wait and see another day. Well I have seen enough..
I am all but out of the stock... To bad, you win some and you lose some....
I see SVSE potentially testing its 50dma and see very reason for it to bounce nicely. Natural Gas is becoming quite bullish with double digit prices forth coming...
AVLN is consolidating quite well.
FDEI is doing well also..
My other Oil/Natural Gas holdings doing well are EPEX, CHK, and PETD.
Good Luck to all!!!!!
Additional NOTES, highlights, & comments from the full 10Q (additional notes).
I am reposting my notes, with new comments, for anyone who has not studied the lengthy full 10Qsb. It was a good 10Q when read in it's entirety. Bashers are saying that AMEP is in deep debt, ...not so; the opposite in fact, read for yourselves the facts filed with the SEC.
I read and studied the complete full version of the 10QSB several times and took notes. The following are my personal highlights, notes, and comments; refer to the 10Q and/or the AMEP CEO Charles Bitters for any further details and/or explanations:
Outstanding shares as of end of reporting Q: 302,030, 234
Last reporting Q was 298,030,234
An increase of 4 M shares.
Note: See 10Q re company converting to a BDC(Business Development Company) when evaluating the following sections:
AMEP expenses:
($114,822) total loss from operations
($91,761) total loss other expenses (interest expense)
Total Net Loss AMEP ($206,583) ... year ago ($702,071)
Net cashed used in operating activities: ($201,663) ...
year ago ($261,143)
Net cash used in investing activities:
($136,556) ... Year ago ($1,044,115)
Cost and fair value of AMEP investees: $2,733,342
Refer to 10Q; the 'fair value'* is based on the cost of the investee to AMEP (much is the original 'historical' cost)...
Production Resources Inc. (PRI) ... $1,284,598 (historical cost)
Oil America Group Inc. (OAGI) ...... $117,000( bought with 'restricted 144' shares)
Bend Arch Petroleum Inc. (BAPI).....$1,256,188
AMEP strategic Investments INC. .... $75,556
Total AMEP Investments in the investees: ...$2,733,342 (The four investees are wholly owned by AMEP).
*BDC's are valued based on the collective value of their wholly owned(in AMEP's case) investees. Consider the potential 'fair value' adjustment by an independent O&NG engineer, when AMEP can show a profit from just a few wells, of the potential of many on the 7,000 acres over the Barnett, plus the 193 PRI wells being brought back onto production with increases using HOA-800.
Do you think an Oil and NG company with 7,000 acres in the Barnett(BAPI) + 193 (PRI) oil wells being re-worked and put back into production + the current near 2 Million in annual O&NG revenues (does not count the est $570,000 annual revenues from the vertical NASH 1-c well recently completed)is fair valued at $2,733,342? Add in Crane Carrier Potable Rig + NG compressors + Oil storage tanks + surface and downhole pumps + miles of owned sales natural gas lines ??? ...$2,733,342 is fair value?? A potentially big Upside advantage, IMHO.
Calculate how many O&NG wells that AMEP can drill on 7,000 acres of 100% blanket coverage of the huge and prolific Barnett Shale formation, with a spacing of 40 acres, 80, or even more, .....that is a lot of wells that will produce gas, and Oil in AMEP's case. The Barnett is the hottest formation in the US on shore, ...there is a reason.
Debt as of end of Q was ($18,153)lease payable (bashers say AMEP is deep in debt, that is simply not true).
Bank notes payable ($17,464) [dated Mar 2001, for the previous shell company's computer equipment]
Bank loan for auto ($4,818) [final payment due Feb 2006]
Total convertible Debentures due Dec 1, 2005 ($335,665)
Total Debt is $367,102 counting CD:
($400,000) CD (before debt discount of $64,335)
($22,284) total bank loans (auto + previous shell Co note)
($18,153) lease payable
Total: ($367,102), ....ie ($440,435) less $64,335 debt discount
10Q note concerning the BDC(Business Development Company), when AMEP becomes profitable(less than a year to profitability per the CEO note on the web site), ...per the 10Q:
"98% of AMEP income will be distributed on a quarterly basis to AMEP stockholders (both income and net capital gains)".
Most of the 10Q is old news, as the knowing posters have noted on the RB thread. Considering the quarterly report in it's entirety, it was a good report. IMHO, the next two Qs will show a turn around based on O&NG revenues with the additional new wells increasing the production; starting with the successful NASH 1-c, followed by two horizontal wells with 100% NWI(Net Working Interest) by wholly owned Bend Arch, ...and that followed by three horizontal wells by wholly owned OAG. Total of 5 horizontals are scheduled for drilling.
The most important activity for AMEP and it's shareholders will be the results of the next two cheap-to-drill re-entries on good heavy 5 1/2" casing that will turn horizontal when it reaches the Barnett formation. These two well will be deepened into the Barnett, and will likely be high volume horizontal wells of considerable frac length in the pay zone. The 'test' Nash 1-C well drilled vertically into the Barnett formation was a big success, when considering the following two horizontal wells will be much, much higher producers, per the independent DD on the big volume advantage of horizontal over vertical drilled wells.
From the Nash announcement (vertical well):
"At today's market price of $60.00/barrel for oil and $8.00/mcf of natural gas this would be approximately $1600.00/day or $48,000.00/month or $570,000.00/year gross revenue."
It is very likely IMHO, that these next two potentially higher producing horizontal wells that AMEP will be drilling, plus the Nash, will put AMEP over the top, ...and profitable. It is important to note that AMEP has 100% of the NWI (net working interest) on these next two horizontals going into the prolific Barnett formation. It is also extremely important to note, that AMEP is getting quantities of Oil with the NG; most Barnett wells are NG producers only per the extensive DD on Barnett wells. AMEP is very, very fortunate to have this type of highly desirable Barnett acerage (7,000 acres) that produces high grade Oil with the Natural Gas.
GL all AMEP longs, the next two wells will be of high interest, and make the patience pay off IMVHO.
Technically, this looks like the last bottom under .02, as the way is clear for several good news events to bring in new buyers.
... %^ greeneyedhawk
I finally bowed up and took my losses on AMEP today
75% of my portfolio was in Amep so a very valuable lesson has been learned the hard way.. Must Diversify, sure everyone always says you have to diversify-- but really you have to experience the negative impacts of not diversifying on your own for that epiphany to set in.. gambled and lost big on this one.. But I still have more than I started with when I got in the market 3 months ago so no harm no foul.. lesson learned! And off to learn more and make some cash
Oh, TRUNK. So sorry for you.
I guess that's the school of hard knocks?
I also stayed in too long, but fortunately with a smaller portion.
I have found that one (of my many) weaknesses is that I sit and glare with a "Polyanna'ish look" at the stocks doing well, and ignoring the ones doing horrible.
Once in a while I wake up, and discustedly sell a looser or two with a good size loss.
In this way I have managed to get a nice 40% loss! ::)
Clever, huh?
I do try to learn from others, and one thing is diversification, but not more than I can still manage to keep an eye on things.
Another is: Don't buy in a frenzy, and don't sell in panic!
What we are also learning on this site: forget about intraday movements. Those are for daytraders. I'm neither clever enough nor fast enough to be a daytrader! ;D
I'm not too proud of my losses, but if I learn something from them...it hasen't been a total loss.
Hope you have more luck with whatever you have left.
Cheers!
AMEP, I added 2M shares on Friday with highest buy of .0143. Three of the buys were 500K blocks. I usually don't post my buys, but wanted to express my confidence with my cash. I’ve been on vacation the last 2 weeks, but did take a break to post on the AMEP 10Q after it was released, …which I thought was good, and clarified the near lack of debt, among other things. Could not pass up adding at this share price. I think some of the sell off after the 10Q was from lack of understanding of how a BDC reports. One example is that AMEP wholly owned investee corporations do not report their revenues on AMEP’s 10Q. AMEP has four investees. Unfortunately that initial sell-off after the release caused the stock SP to drop below technical support, further damaging the SP with additional technicians selling; …so it goes … however I thought it presented an excellent buying opportunity to add, considering the risk/reward was tilted to reward IMO, …so I did.
Any DD at all will tell you that AMEP is worth a multiple of the current Market Cap of$ .0152 X 302,030,234 OS = $ 4,590,859 total MC, if the large range of valuable assets are added together: ie Bend Arch Petroleum Inc’s 7,000 prime acres of 100% blanket coverage of the Texas Barnett Formation(the largest on-shore hydrocarbon source in the US and a major Texas NG producer,) plus Production Resources Inc’s 193 oil wells with pumps being re-worked to bring the field back into production with HOA-800(“PRI discovered a method of well treatment that combines the utilization of heat along with AMEP HOA-800 in a chemical process that has returned positive results. PRI has increased oil production from the Olmos formation on the four test wells by as much as 300% for the month of June. Management now plans on expanding the testing area to an additional 10 oil wells in the next 30 to 45 days.”) plus unreported revenues on the AMEP 10Q generated by all it’s wholly owned investees. Then add on the value of the infastructure and equipment ’paid for’: there are the miles of wholly owned NG sales pipelines, numerous Oil tanks, numerous Oil pumps above ground and downhole, Natural Gas compressors, and a commercial truck with a Portable Crane Carrier Rig (paid for also) for re-working and servicing Oil and NG wells, etc, etc. All the above yielding a $4.6M Market Cap??? With these energy prices the future is bright for AMEP to become profitable, ...and easier. Something does not add up, and it is the low SP component of the Market Cap, IMVHO.
See previous post on the 10Q for additional details.
Mark this post, I am either going to make money on this stock with a very good percentage gain, or watch it go bankrupt. If AMEP goes under, I will not only lose money, but self impose a ban from posting on this site ever again , lol…………. It will do one or the other, it will not flat line at this SP.
Good luck, DD, and technical analysis on AMEP.
… %^ greeneyedhawk
Technical analysis. See AMEP iHub post 989 for three charts for technical analysis. Note the strong bullish move the last time AMEP bounced off the 200 day MA, .0130 to .0252 in July, almost a double. AMEP has once again just bounced off the 200 day MA.
FYI... %^ greeneyedhawk
AMEP DD Oil and Gas ...
Devon is by far my favorite energy company. It is a solid energy company, with great Barnett Shale natural gas(NG) production and reserves. The problem for me is that Devon (DVN) is $57.68 per share. A bit pricy for me, and the company is already a mature company. I had been looking for a high risk/reward speculative Oil and Natural Gas investment with high reserves in the Barnett Shale, like AMEP, that has much room to grow, and grow the SP, currently at .0145. The reason I like Devon so much is that it is the biggest player in the Barnett Shale formation, they bought out Mitchell Energy, which pioneered the slick water frac technique that was able to make the tight Barnett Shale produce in volume.
The Barnett Shale was just recently declared the largest on shore hydrocarbon source and reserves of NG in the US by the independent USGS, a federal agency; and the formation is mostly all in Texas(domestic, and therefore safe). Since that USGS report, the lease price has exploded all over the Barnett. They are now drilling inside the city limits of Ft Worth, because the formation is so prolific in NG, and produce for decades. It is the hottest formation in the US, on shore.
I am invested in AMEP, and AMEP is a high risk/reward investment with 7,000 acres over the Barnett Formation. I have been accumulating shares for over a year now. Like BIPH, ABEW, and HISC, I still have every share of AMEP I have bought so far. I trade other stocks to pay the bills, ...but not these four. I have a multi-bagger going on all these but AMEP, I believe AMEP will be the next to run.
AMEP technically made the Golden 50/200 MA Cross recently. and has bounced off the 200MA four times since. I think it is now ready to move up. Last time AMEP made the 50/200 MA crossing it was a 9 bagger while buying leases, since has retreated,...but now has Oil and Natural Gas revenues that are increasing.
AMEP is a Business Development Company (BDC), and has 4 wholly owned investess in the energy business. One of AMEP's wholly owned investees, Bend Arch inc, has 7,000 acres that are a 100% blanket coverage over the Barnett, that is well over a 300 foot thick formation throughout the leases. The beauty of AMEP's Barnett leases, is that they were acquired before the land rush, and were obtained relatively cheap. They own miles of NG sales and collection pipelines. Another important advantage to these leases is that they produce Oil with the NG, while most Barnett Shale gas wells only produce NG. Unlike most formations which have a relative short production life, the Barnett Shale wells are expected to produce 20 to 30 years, or more, per the independent DD, USGS, and including Devon's statements, because the formation is so vast in size and thickness, and it is THE source rock for the hydrocarbons. They return to near original production when re-fraced, per the DD.
Below is the recent announcement by AMEP on the results of a vertical well drilled down into the Barnett, AMEP is following this well up with 2 100% NWI horizontal wells, that will be cheaply done because the wells are re-entries and will be deepened into the Barnett formation and go horizontal from there; horizontal wells typically produce a multiple of a vertical in the same formation:
MINERAL WELLS, Texas--(BUSINESS WIRE)--Aug. 2, 2005--American Energy Production Inc. (OTCBB:AMEP - News) announced today its wholly owned investee Bend Arch Petroleum Inc. began re-start operations of a uni-draulics jet pump on the Nash 1-C Barnett Shale well.
Charles Bitters, President of American Energy Production Inc. stated, "Bend Arch Petroleum Inc. began successfully producing the Barnett Shale well on Friday, July 29, after exchanging the complete down hole jet assembly and production tubing. The Nash 1-C is still not stabilized but on Monday August 1, the well produced in excess of 20 barrels of high gravity oil and 100,000/cubic feet of natural gas. At today's market price of $60.00/barrel for oil and $8.00/mcf of natural gas this would be approximately $1600.00/day or $48,000.00/month or $570,000.00/year gross revenue[NOTE, NG is now over $10 for NOV, DEC, JAN, FEB, MAR, ...and rising; apply that figure to this announcement]. This will add a very nice piece to the Bend Arch Production Inc. income. The company will post more results once the well has a chance to stabilize therefore giving a clearer picture as to the future of the Nash 1-C well."
The installation of the uni-draulics jet pump on the Nash 1-C well instead of a conventional pumping unit will move more oil and produced water from the well bore faster and more efficiently than the conventional pumping unit.
Charles Bitters also stated, "Bend Arch Petroleum Inc. has accumulated over 7,000 acres of leases that have potential Barnett Shale production. Oil America Group Inc. of Dallas, Texas another 100% owned investee of AMEP plan to offer drilling partnerships to potential investors to drill Barnett Shale wells on the above mentioned properties in the near future. Oil America Group Inc. will begin offering these partnerships in the next two weeks. For more information contact Joe Christopher at Oil America Group Inc."
AMEP has 100% Net working Interest(NWI) on this vertical well, and 100% NWI the next two horizontals that will follow. OAG, another 100% wholly owned investee, is raising funds to drill 3 more horizontals behind Bend Arch's two horizontals. AMEP gets a no cost free ride on OAG's 3 horizontal wells, and will receive 25% NWI after the drilling costs are paid. Keep in mind that these wells produce for 20-30 years or more, so it is a very good deal for AMEP, IMHO, ...and no risk to AMEP shareholders.
AMEP has a total of 5 potentially high producing horizontal wells scheduled for drilling into the Barnett.
Another 100% wholly owned investee PRI, has 193 heavy oil wells with working pumps, that are being re-worked and treated to increase the heavy oil flow, and brought back into production. These wells and lease were obtained when oil was real cheap, ... and now it is not. Only a few wells have been re-worked so far, a big potential when the entire field has been re-worked, treated, and pumping oil into the tanks for sales. PRI has just announced that they have developed their treatment, and are now ready to expand the operation. At todays prices, these 193 wells will be nice revenue generators:
"American Energy Production Inc. Announces Positive Testing Results with AMEP HOA-800
Wednesday July 6, 8:01 am ET
MINERAL WELLS, Texas--(BUSINESS WIRE)--July 6, 2005--American Energy Production Inc. (OTCBB: AMEP - News) announced today its wholly owned investee, Production Resources Inc. posted positive testing results after 8 months of testing various procedures utilizing AMEP HOA 800. PRI discovered a method of well treatment that combines the utilization of heat along with AMEP HOA-800 in a chemical process that has returned positive results. PRI has increased oil production from the Olmos formation on the four test wells by as much as 300% for the month of June. Management now plans on expanding the testing area to an additional 10 oil wells in the next 30 to 45 days.
Charles Bitters, President of American Energy Production Inc. stated, "PRI has been working extremely hard on achieving the desired results with AMEP HOA-800 and now believe its time to start expanding this treatment program. There is still room for improvement, but I believe PRI can now benefit because of current record high oil prices and increased production rates from the Olmos heavy oil sand field. This oil field is very difficult to produce because of the tight sand and the compaction of the heavy oil in the sand, still these are very exciting results."
Management cannot discuss the details and/or formulations being used with AMEP HOA-800, but PRI believes the heat treatment once perfected can possibly be sold to other oil operators. The Company will keep investors informed of the expanded test results.
Update to investors.
Also on June 28, 2005 AMEP announced that wholly owned investee Bend Arch Petroleum Inc. is in the process of filing permits to re-enter another well in the Barnett Shale formation located on its 12 well Palo Pinto Project. This well could be our most significant to date and a major milestone for the company due to the 1000 to 1500 horizontal lateral line that will be drilled in the Barnett Shale. In most scenarios a horizontal well will produce more oil and natural gas than a vertical well. The Company is extremely excited about the potential for this Barnett Shale well. Bend Arch Petroleum is in a great position to benefit from record high prices for oil and natural gas prices because the Company has accumulated over 7,000 acres of leases that have potential Barnett Shale production."
The CEO has stated in writing, that he expects AMEP to become profitable in less than a year now. It appears that Bend Arch will be able to do that alone if the next two 100% NWI horizontal wells are successful. Since they are over a 100% blanket coverage, and because the vertical NASH 1-c Barnett well was so successful, these horizontals are expected to be high producers. 100% Wholly owned Bend Arch will have to cut AMEP a profit check, for AMEP to show a profit, ...and I believe they will be able to do just that after the next two horizontals are completed and producing.
IT IS IMPORTANT TO NOTE, AMEP wholly owned investees are shareholders of AMEP, they were acquired with AMEP shares, so it is extemely important to the investees to make AMEP profitable, and increase the SP. All wholly owned AMEP investees are working hard to do just that.
Wholly owned PRI, should be able to follow Bend Arch with a profit check sometime in the future, if the re-work program continues to succeed, and expand to all the other wells (note some of the 193 wells will be used to inject the treatment, and therefore will not be producers).
I think energy prices are not going to retreat to the $30 bbl range, and that energy will be an important play in the stock markets for decades to come. IMVHO, Devon (DVN) for a safe investment in the Barnett; and AMEP for a high risk/reward investment in the Barnett. Based on recent AMEP developments, and the CEO's quest to make AMEP profitable in less than a year, I think it is now tilted towards high reward, in the high risk/reward category. AMEP's tiny Market Cap of only 4.3 Million$$, is less value than one of Bend Arch's leases and production, IMVHO.
Good luck in what ever you decide, and if you want to play it safe, buy Devon; but if you have some high risk/reward funds, check out AMEP.
Disclosure, long holds: BIPH(overweight), ABEW, HISC, and AMEP.
I have a multi-bagger going on all these but AMEP, AMEP is next IMVHO.
... %^ greeneyedhawk
Appears the posts here on AMEP quit about the time I added 2 M shares at .0141, several posted they sold out. Am I alone here. ... buying against the heard movement.
Technically it just recently made the Golden 50/200 MA cross. Since then it keeps bouncing off the 200 MA on the dips , now it appears to have turned up moving towards the 50 MA. Time will tell ...
GL all.
... greeneyedhawk
AMEP continues to make gains after bouncing off the 200 MA, now has turned up on volume ...eyeing the 50 MA next, per the trend.
Good luck all AMEP longs.
... %^ greeneyedhawk
I havnt sold yet. I am with you.
i'm still in too...it should run all week
From another board. Dont know to much about the company but looks pretty good.
Hi fellow stock holders,I just wanted to inform you that around 5:30pm est today I received a phone call from Joe Christopher from the Oil America group in reference to some questions I had ask via the AMEP web page and I left my number and he called to address any concerns I may have and brief me on some of the history AMEP has and where he believes we are heading.We spoke of many related subjects including the current hurricane situation.Per Joe Christopher AMEP now has over 7000 acres of leases in the Barnett area and he also stated that this area alone in fact has thee largest natural gas and oil as yet untouched in the United States and told me that Mr Bitters has be accumulating property here since the 80's and now I see why.One simple mathematical equation he brought to my attention is the value of the leases alone,some speculate $6000 an acre but he used the figure of only $1000 per acre.By using this figure alone that would put AMEP's value well over $5.5 million by itself without any gas or oil.He also mentioned another site in Texas but I forgot the name,where they are extracting oil from a sand base and told me that their intake has tripled from 2 to 6 barrels now,I think that was per hour but I was in a 3 way conversation and missed it.The history on Mr. Bitters alone was quite interesting and he is definitely and "oil and gas" man! He made it quite clear that they are literally drilling now and there is no where better in the country and when I ask him if the Big Boys are there he replied "every company is now interested in Barnett now especially due to the natural gas which is now predicted to be over 3 TRILLION CUBIC FEET" (Thats 2 trillion more then we first speculated)!!!Mr.Christopher also said that "if we were to get on the AMEX then things will look a lot differant"...I did not respond and I simply wondered why he would even mention the AMEX so it makes me wonder just what they may be working on now.
People I feel even more confident now that this stock will be extremely successful and soon the PPS will reflect it so.Here is a contact link so you to can ask questions and feel free to share them here!
http://www.americanenergyproduction.com/contact.html
good luck to all and I feel we have a winner for sure now!
Netman, Soxguy, and higherstocks, glad to see you folks hanging in there long, patience will pay big on this one, I think. Higherstocks, thanks for passing on your conversation with Joe Christopher, of AMEP's wholly owed OAG. I have talked to him several times myself, and found him to be very open to questions he could help with.
Holding AMEP long for a significant percentage gain. Technically looks stronger every day since the SP bounced off the 200 MA, I am looking for it to cross the 50 MA this week, a bullish move if so...we will see soon enough.
Long holds BIPH, ABEW, HISC, and AMEP. Up a multi-bagger on all but AMEP, AMEP is next, IMVHO.
GL all AMEP longs.
... %^ greeneyedhawk
Financial News & Assets: With a total net income of (207)K, AMEP profitability is within sight, IMVHO. The next two scheduled horizontal wells should do the trick, accumulating at these low SPs until then. SP is WAY undervalued IMO, resulting in the tiny $5 Million Market Cap. AMEP's assets and Oil & NG revenues cannot be bought for less than a multiple of the $5 Million Market Cap.
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.
2) Wholly owned PRI's 193 wells and working pumps project, just getting underway.
3) Miles of owned NG sales and collection pielines.
4) Crane Carrier Portable Rig, to re-work and treat the PRI 193 well project.
5) Oil storage Tanks.
6) Numerous above ground and downhole Oil pumps.
7) NG compressors.
8) Steel casing inventory.
9) Oil revenues.
10) Natural Gas (NG) revenues.
Etc, etc, etc.
You cannot but these assets for less than a serious multiple of the current $5 Million Market Cap. AMEP SP component of the Market Cap is seriously undervalued, That is a fact.
GL all AMEP longs
... %^ greeneyedhawk
Up 17.54 %
David,
You had no way of knowing Katrina was coming, but are you prepared to admit you were right about this one? :D Is the wild speculation gonna drive this up as you once thought, or are we gonna hit the same wall at .024 wall it always does? My stubborness to sell has cost me more money than I would like to care to admit, but this time it worked to my benefit for a change. Occasionally luck will defeat wisdom, but wisdom is much more dependable.
Yes its the luck which is pushing the price and volume. There was no way that Katrina was coming
Technically, after bouncing off the 200 MA several times, and passing the support test, it turned up and now has crossed the 50 MA. Three white candlesticks in a row, on very high volume, over 50M today alone, .......Very bullish move on Volume. Yet only 302M OS per recently released 10Q, the OS is slowly turning over at a higher SP. AMEP is basing a much higher SP here folks. Bullish trend.
Unfortunately, this is early in the Hurricane season, ....it's possible, if not likely, to get another threat in the Gulf. Worth thinking about that consequences on energy prices.
Fortunately for AMEP, with 7,000 acres in the Barnett-the largest on shore reserves of NG in the US, NG has made the biggest percentage gains in energy prices ....by far.
AMEP will be profitable within a year, per the CEO note on the web site, under "about", adjust for date. My DD says he will do it with the next two horizontal wells, that AMEP has 100% Net Working Intrest (NWI).
GL all AMEP longs.
... %^ greeneyedhawk
GL all longs.
... %^ greeneyedhawk
AMEP is on a run, up 25% so far. I was in at .022 and was in red big way. Anybody calculated the target yet?
P
MINERAL WELLS, Texas--(BUSINESS WIRE)--Sept. 1, 2005--American Energy Production, Inc., (OTCBB:AMEP - News) announced today that AMEP Strategic Investments, Inc., an investee, has purchased an 8,000 foot capacity Ideco drilling rig from Aramdrill in Mexico. This acquisition allows American Energy Production, Inc., and its' investees, Bend Arch Petroleum and Oil America Group, Inc., to redefine their long range exploration and development strategy for the 7,000 acres of Barnett Shale prospects currently owned by Bend Arch Petroleum, Inc
Some news on why we are "running" today,
GL to us all still holding was in at 0.0184 finally seeing green ::)
Added.
It may just break thru this time. ;D
Already reached 100 millin in volume has broken the barriers
0.03 barrier broken on 129 million volume
52% increase in price today
Now that we broke thru 0.250 with volume anyone think original exit point of 0.04
is still possible?
David,
Like to see you get back in AMEP.
You deserve it. ;)
The timing of the AMEP news and recent events may make AMEP one of your finest selections. Just beginning, IMO.
Hi,
We can never be sure with the pennies.
But many people were waiting for confirmation of the breakout.
Now it will show up on many filters.
With the Gulf catastrophe, and AMEP getting a rig, it has the combination of:
- Breakout
- Record Volume
- News
- Hot Sector
- Hype
- Long term Chart Sets Some Targets
It will move much higher on the momentum of the combination above.
Never straight up as profit takers will exit along the way.
Just an opinion. ;)
David Randolph, you are the direct reason I signed up with "3-Stocks on Fire". I get around the net on AMEP, because I hold a lot of the stock, and want to keep current with both the fundamentals AND the technicals.
You sir, off all the numerous posts from a wide variety of message boards, did the most outstanding job with the techniocals. Thank You. I just watched and picked up on a few things from your reads, I even understood, from a technical standpoint, why you sold when it barely broke support. I wish it had held a little more above the 200 MA for technical traders sake, ...but at least it did turn in that area.
That said, I want to add my voice to the many here that would like to see you follow up your great calls, and foresight on the potential of AMEP.
David, it is still a 3 cent stock. ......AMEP's assets far outweigh the current tiny MC and SP.
You were right, ....get back in, we selfishly need your technicals on AMEP.
GLTY David Randolph ...It's 'Still Early' with AMEP's SP, ...the news today was a dynamic shift in the potential with the acquisityion of the Big Rig. AMEP will have legs, IMVHO.
... %^ greeneyedhawk
BTW, how do you post a chart here? Like iHub? TIA.
Just added at .0266.
;)
Confident in the new support level.
Willing to wait and see what the new Rig can do for them.
I have add more at 0,027!
It is very reassuring to see on AMEP daily chart, a nice "double bottom" pattern around 0,0245.
Lets hope we will see more of this nice bullish setup!
American Energy Production Inc., Mineral Wells
Charles Bitters, 210-410-8158
www.americanenergyproduction.com
Or
Oil America Group Corp.
Joe Christopher, 972-386-0601
[email protected]================================
Called and they value the real estate at over 7 Million alone.
Do the math on the cap. Worth much more than 3 cents.
They expect 2 Million plus in Revenue this year.
They are getting 160 acres for oil and gas.
Private investors are financing the deal (not stock sale),
Nice part is that they do not Drill offshore.
Hurricanes are not a threat.
Will hold to watch this progress.
I am a RB poster. Just found out about this place and signed up immediately as i saw some familiar names.
Entry price: $0.031 (185K shares) and not worried!!
I thought friday would open differenly but it did not. But as i said I am not worried. This company has all the right ingrediants for a huge run.
$0.12 is where I am unloading half! ;D ;D
AMEP MM,
Gave you the first applaud for the Conan O'Brien attachment.
Hilarious. ;D
Oil is global. So Fridays events of releasing the reserves, European aid, and pipelines coming back hurt AMEP.
Think about how much more oil will be worth that we had to tap reserves.
AMEP chart is extremely bullish. The close was nice.
Ramsburg and David, any thoughts ?
Quote from: fill_the_gap on September 03, 2005, 11:15:46 AM
AMEP MM,
Gave you the first applaud for the Conan O'Brien attachment.
Hilarious. ;D
Oil is global. So Fridays events of releasing the reserves, European aid, and pipelines coming back hurt AMEP.
HAHAHA...Thanks!
As I said I have nothing to worry about! I am pretty happy with my entry price. In a couple of weeks 3 cents would look so cheap you wish you had picked up more. AMEP is real and it is underpriced considering its assets and its future potential. Right now I am contemplating whether I should pick up more and put everything in one basket or not! ;D ;D
Read this if you have not read it already! Barnett is one hot spot for oil giants!! There is a very good chance you see Shell in our area soon. JMHO!
________________________________________________________________
By Christopher Edmonds
RealMoney.com Contributor
8/29/2005 8:13 AM EDT
Altough a number of companies are fighting for the title of King of the Barnett Shale, chatter suggests there may be a new Chief coming to the region.
One of the trendy North American natural gas plays, the Fort Worth Basin in North Texas (also known as the Barnett Shale), is sizzling with drilling activity as large independents like XTO Energy (XTO:NYSE - news - research - Cramer's Take), Devon Energy (DVN:NYSE - news - research - Cramer's Take), EOG Resources (EOG:NYSE - news - research - Cramer's Take) and Chesapeake Energy (CHK:NYSE - news - research - Cramer's Take) work with new horizontal drilling and fracturing techniques to find gas in tight rock formations.
Now, one of the majors appears to have an interest. At a recent gathering of industry executives in Houston, murmurs resurfaced that Royal Dutch Shell (RD:NYSE ADR - news - research - Cramer's Take) is looking for opportunities in the Barnett. Shell's reserve challenges and quest for additional natural gas assets makes the Barnett an intriguing candidate: an easy-to-understand play, relatively easy drilling and a good group of peers from which to learn the intricacies of the play.
The attractiveness of the Barnett lies in the prolific nature of the wells and their attractive economics. To date, there is about 1.2 billion cubic feet per day produced from more than 3,800 wells, or about 300 thousand cubic feet per day per well. Wells are drilled between 4,000 and 11,000 feet at a cost between $400,000 and $2.6 million per well. Both vertical and newer horizontal drilling is taking place in the region.
Chief Candidate
Although there are a number of ways Shell might enter the Barnett, one option would be through the purchase of a company focused on the Barnett Shale. One option would be privately held Chief Oil & Gas, a Dallas-based company with more than 200,000 acres in the Barnett Shale.
While sources close to Shell's decision-making process indicate that no decision has been made, there are projections that Chief could command a price of nearly $1.2 billion, or roughly $6,000 per acre. In addition to acreage, Chief has production north of 100 million cubic feet of natural gas per day and, according to its press releases, has six rigs under contract and more than 100 wells currently producing in the region.
________________________________________________________________
AMEP IS DIRT CHEAP RIGHT NOW!!!
AMEP DD #1 ...
NOTES, highlights, & comments from the full 10Q recently released on Aug 15th.
I am reposting my notes, with new comments, for anyone who has not studied the lengthy full 10Qsb. It was a good 10Q when read in it's entirety. Bashers are saying that AMEP is in deep debt, ...not so; the opposite in fact, read for yourselves the true facts filed with the SEC.
Refer to the 10QSB and/or the AMEP CEO Charles Bitters for any further details and/or explanations:
Outstanding shares as of end of reporting Q: 302,030, 234
Last reporting Q was 298,030,234
An increase of 4 M shares.
Note: See 10Q re company converting to a BDC(Business Development Company) when evaluating the following sections, AMEP as a BDC has four wholly owned investees:
AMEP expenses:
($114,822) total loss from operations
($91,761) total loss other expenses (interest expense)
Total Net Loss AMEP ($206,583) ... year ago ($702,071)
Net cashed used in operating activities: ($201,663) ...
year ago ($261,143)
Net cash used in investing activities:
($136,556) ... Year ago ($1,044,115)
Cost and fair value of AMEP investees: $2,733,342
Refer to 10Q; the 'fair value'* is based on the cost of the investee to AMEP (much is the original 'historical' cost)...
Production Resources Inc. (PRI) ... $1,284,598 (historical cost)
Oil America Group Inc. (OAGI) ...... $117,000( bought with 'restricted 144' shares)
Bend Arch Petroleum Inc. (BAPI).....$1,256,188
AMEP strategic Investments INC. .... $75,556
Total AMEP Investments in the investees: ...$2,733,342 (The four investees are wholly owned by AMEP).
*BDC's are valued based on the collective value of their wholly owned(in AMEP's case) investees. Consider the potential 'fair value' adjustment by an independent O&NG engineer, when AMEP can show a profit from just a few wells, of the potential of many on the 7,000 acres over the Barnett, plus the 193 PRI wells being brought back onto production with increases using HOA-800.
Do you think an Oil and NG company with 7,000 acres in the Barnett(BAPI) + 193 (PRI) oil wells being re-worked and put back into production + the current near 2 Million in annual O&NG revenues (does not count the est $570,000 annual revenues from the vertical NASH 1-c well recently completed)is fair valued at $2,733,342? Add in owned and paid for 'Crane Carrier Portable Rig' + NG compressors + Oil storage tanks + surface and downhole pumps + miles of owned sales natural gas lines, and now a money making big 8,000 ft capacity Ideco Rig ??? ...$2,733,342 is fair value?? A potentially big Upside advantage, IMHO.
Calculate how many O&NG wells that AMEP can drill on 7,000 acres of 100% blanket coverage of the huge and prolific Barnett Shale formation, with a well spacing of 40 acres, 80, or even 160, (80 IMVHO).....that is a lot of wells that will produce gas, and Oil in AMEP's case. The Barnett is the hottest formation in the US on shore, ...there is a reason. And with 1st Sept's great news on the new Ideco Big Rig bought by AMEP, the 7,000 acres can be exploited for production right away.
Debt as of end of Q was ($18,153)lease payable (bashers say AMEP is deep in debt, that is simply not true).
Bank notes payable ($17,464) [dated Mar 2001, for the previous shell company's computer equipment]
Bank loan for auto ($4,818) [final payment due Feb 2006]
Total convertible Debentures due Dec 1, 2005 ($335,665)
Total Debt is $367,102 counting CD:
($400,000) CD (before debt discount of $64,335)
($22,284) total bank loans (auto + previous shell Co note)
($18,153) lease payable
Total: ($367,102), ....ie ($440,435) less $64,335 debt discount
10Q note concerning the BDC(Business Development Company), when AMEP becomes profitable(less than a year to profitability per the CEO note on the web site), ...per the 10Q:
"98% of AMEP income will be distributed on a quarterly basis to AMEP stockholders (both income and net capital gains)".
Most of the 10Q is old news, as the knowing posters have noted on the RB thread. Considering the quarterly report in it's entirety, it was a very good report. IMHO, the next two Qs will show a turn around based on O&NG revenues with the additional new Bend Arch and PRI wells increasing the production; starting with the successful NASH 1-c, which was just completed and did not contribute to the revenues lastQ, followed by two horizontal wells with 100% NWI(Net Working Interest) by wholly owned Bend Arch, ...and that followed by three horizontal wells by wholly owned OAG. Total of 5 horizontals are scheduled for drilling with AMEP's newly acquired Ideco 8,000 ft capacity Big Rig. Then add in the wells PRI will treat with HOA-800 and bring on line this Q from the 193 well project.
The most important activity for AMEP and it's shareholders will be the results of the next two cheap-to-drill re-entries on good heavy 5 1/2" casing that will turn horizontal when it reaches the Barnett formation. Drilling to be done on time with AMEP's owning a rig, and not have to wait on contractors in extremely high demand. These two wells will be deepened into the Barnett, and will likely be high volume horizontal wells of considerable frac length in the pay zone. The 'test' Nash 1-C well drilled vertically into the Barnett formation was a big success, when considering the following two 100% NWI horizontal wells will be much, much higher producers, per the independent DD on the big volume advantage of horizontal over vertical drilled wells.
From the Nash announcement (vertical well) on Aug 2nd:
"At today's market price of $60.00/barrel for oil and $8.00/mcf of natural gas this would be approximately $1600.00/day or $48,000.00/month or $570,000.00/year gross revenue."
(Now Oil is higher than $60.00, and NG increased from $8.00 to +$11.00 since the above announcement, this vertical well will approach grossing nearly a million a year if there are any further increases in energy prices)
It is very likely IMHO, that these next two potentially higher producing horizontal wells that AMEP will be drilling, plus the Nash, will put AMEP over the top, ...and profitable. It is important to note that AMEP has 100% of the NWI (net working interest) on these next two horizontals going into the prolific Barnett formation. It is also extremely important to note, that AMEP is getting quantities of Oil with the NG; most Barnett wells are NG producers only per the extensive DD on Barnett wells. AMEP is very, very fortunate to have this type of highly desirable Barnett acreage (7,000 acres) that produces high grade Oil with the Natural Gas.
GL all AMEP longs, the next two horizontal wells to be drilled next with the newly acquired big Ideco Rig will be of high interest, and make the patience, ,,,and SP pay off big IMVHO.
Technically, this looks bullish for multiple gains, see technicals on AMEP iHub board, as the way is clear for moves much higher, IMVHO and the technical read. Look at the 3 Yr chart, the SP is coming off a saucer bottom earlier this year, the SP is still historically low. Fundamentally AMEP's cold hard assets and Oil and NG revenues, FAR outweighs the tiny Market Cap, and certainly the $2.7M 'Fair Value' assigned by the 10Q (that will change drastically UP, when the CEO decides to have an independent Oil and NG engineering firm come in and re-evaluate the current and true values of all four of AMEP's investees, ...big upside 'surprise' potential on that news making event).
Thursday's news on AMEP's purchase of a big 8,000' capacity Ideco Rig could not be more bullish for AMEP, and the 7,000 acres in the highly prolific Barnett to be developed independently ...and in these times of energy shortages. Don't forget about the wholly owned PRI 193 oil wells and pumps project, that is just getting underway, huge upside potential there, where AMEP's PRI will use AMEP's owned and paid for 'Crane Carrier Portable Rig' to re-work and start bring into production from the PRI 193 wells lease.
Going UP, ...MC & SP cheap, it's still early.
GL all AMEP longs
... %^ greeneyedhawk
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 undisputeable 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.) Conservatively 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 of 11, which the Barnett is the deepest, thus more than meets 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
.
AMEP DD #3:
AMEP DD Oil and Gas for new eyes...
Devon is by far my favorite energy company. It is a solid energy company, with great Barnett Shale natural gas(NG) production and reserves. The problem for me is that Devon (DVN) is $57.68 per share. A bit pricy for me, and the company is already a mature company, also DVN sustained hurricane damage from some of it's assets. I had been looking for a high risk/reward, tilted toward high reward, speculative Oil and Natural Gas investment with high reserves in the 'Barnett Shale Formation', ...like AMEP, that has much room to grow it's revenues, and grow the extremely low Market Cap and resulting SP. The reason I like Devon so much is that it is the biggest player in the Barnett Shale formation, they bought out Mitchell Energy, which pioneered the slick water frac technique that was able to make the tight Barnett Shale formation produce Natural Gas (NG) in big volume.
The Barnett Shale was just recently declared the largest on shore hydrocarbon source and reserves of NG in the US by the independent USGS, a federal agency; and the formation is mostly all in Texas(domestic, and therefore safe). It was the largest NG producing formation, on shore, in the US last year. Since that USGS report, the "Barnett Shale" lease price has exploded all over the Barnett, with good leases valued from $2,000 - $6,000 per acre, depending on other assets and production with the leases. AMEP has 7,000 Barnett acres, that are 'Prime' because they also produce Oil with the Gas. Oil companies are now drilling inside the city limits of Ft Worth because the formation is so prolific in NG, and produce for decades. It is the hottest formation in the US, on shore, ...there is a reason $$$. Well inside Texas boundaries, AMEP is safe from hurricane events, and being a US domestic company is an additional comfort.
AMEP is a Business Development Company (BDC), and has 4 wholly owned investess in the energy business. One of AMEP's wholly owned investees, Bend Arch inc, has 7,000 acres that are a 100% blanket coverage over the Barnett, that is well over a 300 foot thick formation throughout the leases. There are a total of 11 payzones, including the highly prolific Marble Falls formation. The beauty of AMEP's Barnett leases, is that they were acquired before the 'Barnett' land rush, and were obtained relatively cheap. They own miles of NG sales and collection pipelines and numerous NG compressors. Another important advantage to these leases is that they produce Oil with the NG, while most Barnett Shale gas wells only produce NG. Unlike most formations which have a relative short production life, the Barnett Shale wells are expected to produce 20 to 30 years, or more, per the independent DD, USGS, and including Devon's own statements, because the formation is so vast in size and thickness, and it is THE source rock for the hydrocarbons. It is very important to note that they return to near original production when re-fraced, per the DD ...a big deal and an important fact when DDing AMEP's future prospects.
Below is the recent announcement by AMEP on the results of a vertical well drilled down into the Barnett, AMEP is following this well up with two 100% NWI (Net Working Interest) horizontal wells, that will be cheaply done because the wells are re-entries and will be deepened into the Barnett formation and go horizontal from there; horizontal wells typically produce a multiple of a vertical in the same formation:
----------------------------
MINERAL WELLS, Texas--(BUSINESS WIRE)--Aug. 2, 2005--American Energy Production Inc. (OTCBB:AMEP - News) announced today its wholly owned investee Bend Arch Petroleum Inc. began re-start operations of a uni-draulics jet pump on the Nash 1-C Barnett Shale well.
Charles Bitters, President of American Energy Production Inc. stated, "Bend Arch Petroleum Inc. began successfully producing the Barnett Shale well on Friday, July 29, after exchanging the complete down hole jet assembly and production tubing. The Nash 1-C is still not stabilized but on Monday August 1, the well produced in excess of 20 barrels of high gravity oil and 100,000/cubic feet of natural gas. At today's market price of $60.00/barrel for oil and $8.00/mcf of natural gas this would be approximately $1600.00/day or $48,000.00/month or $570,000.00/year gross revenue[NOTE, NG is now over $10 for NOV, DEC, JAN, FEB, MAR, ...and rising; apply that figure to this announcement]. This will add a very nice piece to the Bend Arch Production Inc. income. The company will post more results once the well has a chance to stabilize therefore giving a clearer picture as to the future of the Nash 1-C well."
The installation of the uni-draulics jet pump on the Nash 1-C well instead of a conventional pumping unit will move more oil and produced water from the well bore faster and more efficiently than the conventional pumping unit.
Charles Bitters also stated, "Bend Arch Petroleum Inc. has accumulated over 7,000 acres of leases that have potential Barnett Shale production. Oil America Group Inc. of Dallas, Texas another 100% owned investee of AMEP plan to offer drilling partnerships to potential investors to drill Barnett Shale wells on the above mentioned properties in the near future. Oil America Group Inc. will begin offering these partnerships in the next two weeks. For more information contact Joe Christopher at Oil America Group Inc."
-------------------------
AMEP has 100% Net working Interest(NWI) on this vertical well, and 100% NWI the next two horizontals that will follow. OAG, another 100% wholly owned investee, is raising funds to drill 3 more horizontals behind Bend Arch's 2 horizontals. AMEP gets a no cost free ride on OAG's 3 horizontal wells, and will receive 25% NWI after the drilling costs are paid. Since AMEP will do the drilling with the new Ideco rig, AMEP will retain the drilling profits charged to OAG, instead of going to a contractors deep pocket. Keep in mind that these wells produce for 20-30 years or more, so it is a very good deal for AMEP, IMHO, ...and no risk to AMEP shareholders.
AMEP has a total of 5 potentially high producing horizontal wells scheduled for drilling into the Barnett with the newly acquired Ideco rig. PLUS it will be AMEP collecting the drilling profits from drilling OAG's three wells, ...adding cash for other AMEP needs, instead of a drilling contractor collecting the profits ... a very important 'new fact', since AMEP acquired the big IDECO rig.
"This drilling rig will become another significant profit center for the AMEP companies. Rigs with a drilling capacity of 8,000 feet are currently netting $10,000.00 per day."
Another 100% wholly owned investee PRI, has 193 heavy oil wells with working pumps, that are being re-worked and treated to increase the heavy oil flow, and brought back into production. These wells and lease were obtained when oil was real cheap, ... and now it is not. Only a few wells have been re-worked so far, a big potential revenue generator, when the entire field has been re-worked, treated, and pumping oil into the tanks for sales. PRI has just announced that they have developed their treatment, and are now ready to expand the operation. At todays crude prices, these 193 wells will be nice steady revenue generators:
------------------------------
"American Energy Production Inc. Announces Positive Testing Results with AMEP HOA-800
Wednesday July 6, 8:01 am ET
MINERAL WELLS, Texas--(BUSINESS WIRE)--July 6, 2005--American Energy Production Inc. (OTCBB: AMEP - News) announced today its wholly owned investee, Production Resources Inc. posted positive testing results after 8 months of testing various procedures utilizing AMEP HOA 800. PRI discovered a method of well treatment that combines the utilization of heat along with AMEP HOA-800 in a chemical process that has returned positive results. PRI has increased oil production from the Olmos formation on the four test wells by as much as 300% for the month of June. Management now plans on expanding the testing area to an additional 10 oil wells in the next 30 to 45 days.
Charles Bitters, President of American Energy Production Inc. stated, "PRI has been working extremely hard on achieving the desired results with AMEP HOA-800 and now believe its time to start expanding this treatment program. There is still room for improvement, but I believe PRI can now benefit because of current record high oil prices and increased production rates from the Olmos heavy oil sand field. This oil field is very difficult to produce because of the tight sand and the compaction of the heavy oil in the sand, still these are very exciting results."
Management cannot discuss the details and/or formulations being used with AMEP HOA-800, but PRI believes the heat treatment once perfected can possibly be sold to other oil operators. The Company will keep investors informed of the expanded test results.
Update to investors.
Also on June 28, 2005 AMEP announced that wholly owned investee Bend Arch Petroleum Inc. is in the process of filing permits to re-enter another well in the Barnett Shale formation located on its 12 well Palo Pinto Project. This well could be our most significant to date and a major milestone for the company due to the 1000 to 1500 horizontal lateral line that will be drilled in the Barnett Shale. In most scenarios a horizontal well will produce more oil and natural gas than a vertical well. The Company is extremely excited about the potential for this Barnett Shale well. Bend Arch Petroleum is in a great position to benefit from record high prices for oil and natural gas prices because the Company has accumulated over 7,000 acres of leases that have potential Barnett Shale production."
-------------------------
The CEO has stated in writing, that he expects AMEP to become profitable in less than a year now (see the CEO's note under "about" and "update" on AMEP's web site). It appears that Bend Arch will be able to do that alone if the next two 100% NWI horizontal wells are successful (especially with the Bullish News that AMEP now has a Big IDEC Rig ...no waiting to start the drilling program). Since they are over a 100% blanket coverage, and because the vertical NASH 1-c Barnett well was so successful, these horizontals are expected to be very high producers. 100% Wholly owned Bend Arch will have to cut AMEP a profit check, for AMEP to show a profit, ...and I believe they will be able to do just that after the next two horizontals are completed and producing. Helping will be PRI adding revenues with each well treated, re-worked and brought onto production and Oil sales.
IT IS IMPORTANT TO NOTE, AMEP wholly owned investees are shareholders of AMEP, they were acquired with AMEP shares, so it is extemely important to the investees to make AMEP profitable, and increase the SP. All wholly owned AMEP investees are working hard to do just that.
Wholly owned PRI, should be able to follow Bend Arch with a profit check sometime in the future, if the re-work program continues to succeed, and expand to all the other wells (note some of the 193 wells will be used to inject the treatment, and therefore will not be producers).
Sept 1st Bullish News development for AMEP, with it's newly formed wholly owned investees purchase of a Big IDECO Rig:
-------------------------
MINERAL WELLS, Texas--(BUSINESS WIRE)--Sept. 1, 2005--American Energy Production, Inc., (OTCBB:AMEP - News) announced today that AMEP Strategic Investments, Inc., an investee, has purchased an 8,000 foot capacity Ideco drilling rig from Aramdrill in Mexico. This acquisition allows American Energy Production, Inc., and its' investees, Bend Arch Petroleum and Oil America Group, Inc., to redefine their long range exploration and development strategy for the 7,000 acres of Barnett Shale prospects currently owned by Bend Arch Petroleum, Inc.
Charles Bitters, President of American Energy Production, Inc., said, "The Company is very excited about the acquisition of the Ideco Drilling Rig. To locate a rig of this type in the current demand driven environment is a small miracle. There just are not any rigs of this quality for sale. Because of the recent record prices for crude oil and natural gas, it is almost impossible to schedule a rig. The current rig availability is at best six months and more often than not, one year. This is the perfect drilling rig for the productions horizons the Company is interested in exploiting.
"The Barnett Shale was the largest natural gas producing field in the United States last year and is currently one of the hottest energy plays in the world, attracting such companies as XTO, Devon and Quicksilver. This rig has the capacity to drill horizontal Barnett Shale wells with lateral sections of up to 3,000 feet. Bend Arch Petroleum can re-enter several Barnett Shale and Marble Falls prospects while Oil America Group is selling limited partnership drilling programs in the Barnett Shale. Now there will not be any delay while waiting for other drilling rig contractors."
This drilling rig will become another significant profit center for the AMEP companies. Rigs with a drilling capacity of 8,000 feet are currently netting $10,000.00 per day. If this drilling rig operates approximately 200 days per year the gross income would be $2,000,000.00 per year. Bend Arch Petroleum, Inc., and Oil America Group should be able to participate in an additional twenty (20) oil and gas wells in the next year because of the availability of this drilling rig. Twenty new oil or gas wells producing the equivalent of only 20 barrels of oil per day would generate a gross income of approximately $6,000,000.00 per year.
Initial inquiries for the Oil America Group Limited Drilling Partnership have been overwhelming. Joe Christopher and his corporate counsel have submitted the documents for final approval. They should begin taking partnership subscriptions in early September. Potential investors will be notified when the program receives final approval.
--------------------------
I don't think energy prices are going to retreat to the $30 bbl range, and NG to the $4 range. Energy will be an important play in the stock markets for decades to come, with shortages and speculators driving the prices ever higher. Based on recent AMEP developments and IDECO rig acquisition, and the CEO's quest to make AMEP profitable in less than a year, I believe AMEP will get a lot of attention in the markets for months and years to come.
GL all AMEP longs.
Disclosure, long holds: BIPH, ABEW, HISC, and AMEP.
... %^ greeneyedhawk
"Bend Arch Petroleum, Inc., and Oil America Group should be able to participate in an additional twenty (20) oil and gas wells in the next year because of the availability of this drilling rig."
Think about it, do the simple math.
Good luck and DD all.
... %^ greeneyedhawk
Nice job Hawk!!!
Makes my 0.031 entry look even better just reading your DD! ::)
Quote from: AMEP_MM on September 04, 2005, 08:51:42 AM
Nice job Hawk!!!
Makes my 0.031 entry look even better just reading your DD! ::)
I sold all of AMEP on Friday, Do you think a renentry would be good at this time (tesusday)?
TIA
As i mentioned before I am contemplating whether I should put all my eggs in AMEP basket right now!
Coming weeks should give us a hell of a ride. Charts and fundamentals dont lie. I see easy money here.
Ofcourse I dont want you buying as i need to free up some cash before putting all my eggs in AMEP basket!
HOA-800 additive, SEE Comments below this DD announcement.
---------------------------
American Energy Production Inc. Announces Positive Testing Results with AMEP HOA-800
Wednesday July 6, 8:01 am ET
MINERAL WELLS, Texas--(BUSINESS WIRE)--July 6, 2005--American Energy Production Inc. (OTCBB: AMEP - News) announced today its wholly owned investee, Production Resources Inc. posted positive testing results after 8 months of testing various procedures utilizing AMEP HOA 800. PRI discovered a method of well treatment that combines the utilization of heat along with AMEP HOA-800 in a chemical process that has returned positive results. PRI has increased oil production from the Olmos formation on the four test wells by as much as 300% for the month of June. Management now plans on expanding the testing area to an additional 10 oil wells in the next 30 to 45 days.
Charles Bitters, President of American Energy Production Inc. stated, "PRI has been working extremely hard on achieving the desired results with AMEP HOA-800 and now believe its time to start expanding this treatment program. There is still room for improvement, but I believe PRI can now benefit because of current record high oil prices and increased production rates from the Olmos heavy oil sand field. This oil field is very difficult to produce because of the tight sand and the compaction of the heavy oil in the sand, still these are very exciting results."
Management cannot discuss the details and/or formulations being used with AMEP HOA- 800, but PRI believes the heat treatment once perfected can possibly be sold to other oil operators. The Company will keep investors informed of the expanded test results."
----------------------------
IMVHO, I think some investors are overlooking the above AMEP wholly owned PRI, and already drilled 193 PRI heavy Oil well project, with working pumps. AMEP's wholly owned Bend Arch, with it's 7,000 acres in the Barnett is getting 80% of the attention by new eyes with new revenue projections, especially with the news that AMEP will develop the 7,000 acres independently with it's just acquired big Ideco Rig. Note that PRI can use the 'Crane Carrier Portable Work-over Rig' to service these wells and bring them back into production and pumping Oil, while Bend Arch drills into the Barnett Shale and the Marble Falls formations, and multiple other pay zones (Up to 11 Oil and/or NG pay zones exists on Bend Arch's leases) with the just acquired Ideco Rig. Please note that not all of the 193 PRI Oil wells will be producers, about one in five will be used to inject the heated HOA-800 treatment. That said, pullout a calculator and apply a conservative 'X' barrels per day to 154 Oil wells. It is a significant number, that should be attainable in relatively short time period, since additional drilling is not required, and AMEP will not have to wait on a servicing rig, as it owns it's own Crane Carrier portable work over rig. BTW, when I recently talked to CB, the CEO, I asked him how much was he getting for PRI's heavy Oil, he told me PRI got $60 a barrel on the last load delivered, Texas has refineries that process heavy oil, and now pay good prices. When these wells were shut in, heavy oil was not in high demand and only paid a few bucks per barrel, thus CB got a good deal when picking up this 193 well project at a very cheap price. When PRI develops it's 154 wells, the revenues will be VERY significant. Do the simple math.
GL all AMEP longs.
... %^ greeneyedhawk
Bought more at 0.026 and happy with it!
Can't say that I am as happy with the picture this morning. I am in at the high .02's, and today's action makes the .025/.026 area look more like a ceiling than a new base.
GUYS, I hope the best for you- I do. But please read pages 1-14. This stock does not have what it takes; At least not for the mild stomach stock trader. We all sat on this stock for 2 months and anytime it went up, it came down lower and lower. Becareful, this stock does not run with the rest of its oil brothers. Maybe better news has come out recently for you. Good luck AMEP holders.
puenthouse, I disagree with your general assessement of AMEP. Last Thursday's good news of AMEP's acquisition of a big Ideco rig, to develop the 7,000 acres of 100% blanket coverage of the Barnett Shale Formation, the largest on shore(that is good) Natural Gas (NG) reserves in the US, drastically changed AMEP's dynamics for developing revenues quickly.
I talked to the CEO recently, and he re-affirmed that he believes AMEP will acheive profitability in less than a year now, especially since the big rig acquisition will mean there will not be any drilling delays due to waiting on a contract rig, like most other junior oil companies will, ...and are now, doing.
The next two wells will be AMEP's first high producing horizontal wells into the prolific Barnett Shale formation, with 100% NWI for AMEP done cheaply on a re-entry with the bigger 5 1/2'' caseing. These two wells, if successfully completed - and I think they will be, will make AMEP profitable, IMHO and per the DD.
GL all.
... %^ greeneyedhawk
Bought more at $0.0231 and EXTREMELY happy with it! ;D ;D ;D
I am going to buy as much as i can on the dips!
I WILL BE RICH VERY SOON! ;D ;D ;D
To whoever it is that is giving me negative rating: I COULD NOT CARE LESS!! ;D ;D ;D
;D ME AND AMEP BOTH RICH SOON! ;D YOU CAN SHOVE YOUR RATING UP YOUR ARSE ;D
Thanks for all the love!!!I LOVE YOU TOO! ;D ;D ;D
LOL...Keep them coming..!!
P.S:Tommorow we should see the new leg up. I am ready for a ride to 5 cents before going over 10 cents.
Amep....
I have not smite you, but you, in this thread, makes me yearn for October 1. So I will be patient until then. What in the charts makes it possible to see .05, much less .10 soon? Please enlighten me.......I am eager to learn.
RJ
Hawk, is it possible that you are pumping this stock just a tad too
vigorously? I appreciate your enthusiasm and I own a chunk of this
too. But your constant detailed pumping may scare some potential
investors away.
When someone questions some aspect of this company I would think
it appropriate to answer them. However, when you go overboard with
it...well...uh...it begins to look like you may be part of a pump 'n dump
scheme. Consider backing off just a little, okay? :-\
WOW, smitted 5 times just for telling you guys to be careful on this one. Thanks AMEP holders.
Don't take it personally, I think these smiters should have the courage to post why they smite, but they don't, they're cowards.
Let's stay focused, folks. The best thing about this site is that it isn't (or wasn't) like yahoo. Facts rule here. Let us all strive to keep it that way.
So, emotions and pumping aside, where do folks see this technically ? Wasn't able to maintain the new base at .025 and is currently down for the 3rd day in a row, to .021. Looking for it to bounce off .02 ?
Quote from: RJ on September 06, 2005, 09:28:02 PM
Amep....
I have not smite you, but you, in this thread, makes me yearn for October 1. So I will be patient until then. What in the charts makes it possible to see .05, much less .10 soon? Please enlighten me.......I am eager to learn.
RJ
Market cap for AMEP does not make any sense considering its potential and its holdings.So one concludes AMEP SP must go up. Looking at the charts you see that you have a minor resistance level which was set in April 2004 at 5 cents. Next resistance level which is a slitely stronger one you see is at 10 cents and that is our next stop before running wild.
Hope this clears the picture on how I made those calls.
PS: Keep those smites coming people! I like being the bad boy on the block! ;D ;D
Another point i would like to make:
Keep looking for stocks that break a long term trend. AMEP tops that list. We have broken a long term downward trend. This puppy has come out to break the all time highs of 30-40 cents.
JMHO!
AMEP UPDATE:
Bottom is in at 0.02.11:05 AM Wed. Sept. 7,05 start of our new leg up(0.0202 was the price at the time).
Go ahead and book mark this. Smite me later for being wrong.
It had a gap to fill near .002.
Will not sell here.
Oil will be back up shortly.
More of an issue now with tapping the reserves. :o
Amep....
I thank you for your answer. Now I know. Maybe in the future you might consider giving a small/brief explanation up front next time so that some of us do not feel we are in a Yahoo or Google message board. . There is a large number of us "Newbies" here and as you can see, we are very eager to learn and understand so that we may at some point contribute something profitable to the group. I applauded you and reduced the "smites" by one.... ;) :)
Again, thank you
RJ
Perhaps .02 will prove to be a bottom on the current run (sure hope so). The current opening indication is upward (.0215/.022).
With oil back up long enough...,
AMEP may unfold a nice full G spot patern in the next few sessions IMHO
http://biz.yahoo.com/bw/050916/165403.html?.v=1
American Energy Production Inc. Announces Oil Drilling Rig Arrives in Mineral Wells, Texas
Friday September 16, 11:37 am ET
MINERAL WELLS, Texas--(BUSINESS WIRE)--Sept. 16, 2005--American Energy Production Inc. (OTCBB:AMEP - News) announced today the Ideco drilling rig purchased by Investee AMEP Strategic Investments Inc. from Aramdrill in Mexico has arrived in Mineral Wells, Texas.
ADVERTISEMENT
Charles Bitters, President of American Energy Production Inc., said, "The Company is very excited with the delivery of the Ideco drilling Rig from Mexico City to Mineral Wells. To locate a rig of this type in the current demand driven environment and go through Mexico and U.S. Customs without any major problems is no small feat. There just are not any rigs of this quality for sale. Because of the recent record prices for crude oil and natural gas, it is almost impossible to schedule a rig. This is the perfect drilling rig for the productions horizons the Company is interested in exploiting." The Company will immediately begin checking out the drilling rig and mud pump engines and add the support equipment necessary to begin drilling operations. This drilling rig should be in the field drilling in the next three weeks. AMEP will continue to inform shareholders as work progresses.
The Barnett Shale was the largest natural gas producing field in the United States last year and is currently one of the hottest energy plays in the world, attracting such companies as XTO, Devon and Quicksilver. This rig has the capacity to drill horizontal Barnett Shale wells with lateral sections of up to 3,000 feet. Bend Arch Petroleum can re-enter several Barnett Shale and Marble Falls prospects while Oil America Group is selling limited partnership drilling programs in the Barnett Shale. Now there will not be any delay while waiting for other drilling rig contractors.
This Drilling Rig will become another significant profit center for the AMEP companies. Rigs with a drilling capacity of 8,000 feet are currently netting $10,000.00 per day. If this Drilling Rig operates approximately 200 days per year the gross income would be $2,000,000.00 per year. Bend Arch Petroleum Inc. and Oil America Group should be able to participate in an additional twenty (20) oil and gas wells in the next year because of the availability of this Drilling Rig. Twenty new oil or gas wells producing the equivalent of only 20 barrels of oil per day would generate a gross income of approximately $6,000,000.00 per year.
Initial inquiries for the Oil America Group Limited Drilling Partnership have been overwhelming. Joe Christopher and his corporate counsel have submitted the documents for final approval. They should begin taking partnership subscriptions in early September. Potential investors will be notified when the program receives final approval. For more information contact:
[email protected] or 972-386-0601.
Statements contained in this release, which are not historical facts, may be considered "forward-looking statements" and are based on current expectations and the current economic environment. We caution the reader that such forward-looking statements are not guarantees of future performance. Unknown risks, uncertainties, as well as other uncontrollable or unknown factors could cause actual results to materially differ from the result, performance, or expectations expressed or implied by such forward-looking statements.
--------------------------------------------------------------------------------
Contact:
American Energy Production Inc., Mineral Wells
Charles Bitters, 210-410-8158
www.americanenergyproduction.com
or
Oil America Group Corp.
Joe Christopher, 972-386-0601
[email protected]
AMEP GOOD NEWS!!American Energy Production, Inc. Announces Increased Oil Production from Investee Production, Resources Inc.
Tuesday September 20, 9:00 am ET
MINERAL WELLS, Texas--(BUSINESS WIRE)--Sept. 20, 2005--American Energy Production Inc. (OTCBB:AMEP - News) announced today its wholly owned investee, Production Resources, Inc. posted significant oil production increases after several months of testing various procedures utilizing AMEP HOA 800. PRI discovered a method of well treatment that combines the utilization of heat along with AMEP HOA-800 in a chemical process that has returned positive results. PRI has increased oil production from the Olmos formation on the 12 test wells by as much as 500% for the month of August. Plans are being implemented to expand the testing area to an additional 25 oil wells in the next 45 days. In august PRI produced 987 barrels of oil at gross sales of approximately $55,000.00
Charles Bitters, President of American Energy Production, Inc. stated, "This is the best month for oil production and revenues that PRI has done since AMEP bought the Company. PRI has been working extremely hard on achieving the desired results with AMEP HOA-800 and now believe its time to start expanding this treatment program. There is still room for improvement, but I believe PRI can now benefit because of current record high oil prices and increased production rates from the Olmos heavy oil sand field. This oil field is very difficult to produce because of the tight sand and the compaction of the heavy oil in the sand; still these are very exciting results."
Management cannot discuss the details and/or formulations being used with AMEP HOA- 800, but PRI believes the heat treatment once perfected can possibly be sold to other oil operators. The Company will keep investors informed of the expanded test results.
Update to investors.
http://www.americanenergyproduction.com/projects_1.html
Also on June 28, 2005 AMEP announced that wholly owned investee Bend Arch Petroleum, Inc. is in the process of filing permits to re-enter another well in the Barnett Shale formation located on its 12 well Palo Pinto Project. This well could be our most significant to date and a major milestone for the company due to the 1000 to 1500 horizontal lateral line that will be drilled in the Barnett Shale. With the purchase of a 8,000 foot drilling rig by AMEP Strategic Investments Inc., another investee of American Energy Production Inc., this will be the first well the drilling rig will be moved to. In most scenarios a horizontal well will produce more oil and natural gas than a vertical well. The Company is extremely excited about the potential for this Barnett Shale well. Bend Arch Petroleum is in a great position to benefit from record high prices for oil and natural gas prices because the Company has accumulated over 7,000 acres of leases that have potential Barnett Shale production.
FYI... %^ greeneyedhawk
My prediction turned out to be right no the money. But you people chose to smite me instead and keep me off this board! That's ok!
Take a look at MRKL.OB!!!!
HUGE REVERSAL IN THE MAKING!!!
D.RANDOLPH IF YOU ARE READING THIS TAKE A CLOSE LOOK AT IT IN DETAIL!
Disclosure: Entry price for MRKL $0.042
Good Prediction!!!!! Let me applaud u
Quote from: AMEP_MM on September 20, 2005, 12:18:15 PM
My prediction turned out to be right no the money. But you people chose to smite me instead and keep me off this board! That's ok!
Take a look at MRKL.OB!!!!
HUGE REVERSAL IN THE MAKING!!!
D.RANDOLPH IF YOU ARE READING THIS TAKE A CLOSE LOOK AT IT IN DETAIL!
Disclosure: Entry price for MRKL $0.042
;D All right! ;D
I'm in with a VERY small amount in both AMEP and MRKL.
AMEP "owes" me some :D
Cheers.
Just sold half of my position in AMEP. Loaded more of MRKL at .04!
D. Randolph if you are reading this take a close look at it.
Damn parabloic rally before the close.
Dont forget MRKL. Buy at these levels you wont regret.
Very happy with AMEP :), but not with MRKL. :(
What is your reason for recommending that one (MRKL) , AMEP_MM?
Quote from: cumulina on September 21, 2005, 04:19:53 PM
Very happy with AMEP :), but not with MRKL. :(
What is your reason for recommending that one (MRKL) , AMEP_MM?
Same reason I had for AMEP. AMEP was underpriced considering its assets and its potential. It had to run.
MRKL is not underpriced. IT'S OVERSOLD!!! Take a look at its assets:
http://www.pinksheets.com/quote/print_filings.jsp?url=%2Fredirect.asp%3Ffilename%3D0001324468%252D05%252D000020%252Etxt%26filepath%3D%255C2005%255C05%255C23%255C&symbol=MRKL
Almost $8 mil in cash...$13 million in current assets
Revenue(9 month) of over $46 mil
And the company has a $6 milion marketcap!? That's a joke!
But there is a reason for this oversold price. There is dilution going on to pay for one of the loans through converion.
Trust me people once this conversion is done you wont see MRKL below 15 cents. It's a joke.
So load up while you can!
From the technical stand point charts are indicating an oversold price. RSI level is too low. MRKL is bound to make a rebound. And when it does be sure it will be a big one. ;D ;D
Quote from: AMEP_MM on September 21, 2005, 07:30:34 PM
Quote from: cumulina on September 21, 2005, 04:19:53 PM
Very happy with AMEP :), but not with MRKL. :(
What is your reason for recommending that one (MRKL) , AMEP_MM?
Same reason I had for AMEP. AMEP was underpriced considering its assets and its potential. It had to run.
MRKL is not underpriced. IT'S OVERSOLD!!! Take a look at its assets:
http://www.pinksheets.com/quote/print_filings.jsp?url=%2Fredirect.asp%3Ffilename%3D0001324468%252D05%252D000020%252Etxt%26filepath%3D%255C2005%255C05%255C23%255C&symbol=MRKL
Almost $8 mil in cash...$13 million in current assets
Revenue(9 month) of over $46 mil
And the company has a $6 milion marketcap!? That's a joke!
But there is a reason for this oversold price. There is dilution going on to pay for one of the loans through converion.
Trust me people once this conversion is done you wont see MRKL below 15 cents. It's a joke.
So load up while you can!
I think its dangerous to follow this fundamental analysis reasoning alone for entry on MRKL. Until it shows technical signs of life (price moving back up with volume) we may not have the full fundamental picture (someone always knows more) and therefore no telling when MRKL will stop its descent if ever. I hope it sky rockets for those in it, goodluck.
Meanwhile since this is the
AMEP thread: She is looking fantastic! I bought in today (http://www.3stocksonfire.org/trading/index.php?topic=1374.465) and am looking for great things. Lets see what shes got. :)
Yeap...Catching a falling knife has its danagers i agree. And yes AMEP does look awesome!
Just make sure you have MRKL under your radar. I will keep you guys posted if reversal takes place and when it gets confirmed. There is money to be made there. BIG money.
Oh btw make sure you take a look at these slides that were presented at a homeland security confrence today.
http://www.investorideas.com/forums/Media/HDS3/mrkl/Markland.htm
Take note of their revenues and their projected growth.
MRKL IS ONE OF THE VERY FEW >>>>>REAL<<<<< COMPANYS THAT HAS >>>REAL<<<< SUBCIDARIES WITH >>>>REAL<<< REVENUES IN OVER THE COUNTER MARKET. The best part about it is that it is priced at an amazingly low price of $6 million!!!
Too good to be true...I know!!!
BINGO BANGO!!!!NEWS OUT TODAY 8:00AM!!!
http://biz.yahoo.com/bw/050922/225147.html?.v=1
WATCH OUT FOR MRKL!!!!!!!!!!!!!!!
I will be watching MRKL ;) thx and applaud AMEP_MM
do you know whats the deal with the subsidaries.. fully owned?
EOIR, the company that got the contract today, is owned 100% by MRKL. MRKL also owns GENEX and owns 98% of Technest Holdings((98% is subject to change within the next few months it could go as low as 75%)
Dont foget to watch and listen to this confrence presentation that was held yesterday:
http://www.investorideas.com/forums/Media/HDS3/mrkl/Markland_files/frame.htm
GOD DAMN IT...I AM GOOOOOOOOOOOOOOOOOOOOOOOD!!! ;D ;D
Anyone see any more upside or do you think stock retraces after storm passes?
was in at 0.184 but exited at .022, when it started coming back down.
asposted .02 was the bottom, Good call on that.
AMEP has been a little tricky to call in past allways seem to retrace after large move up.
Thanks for any insight guys, Mark
Amep is done for the week. 0.05 is the temporary resistance above. It needs volume to get passed 0.05 and volume is not there anymore. Profit taking on way before close today and on friday.
P.S: dont forget the MRKL reversal ;D
AMEP_MM I am not yet convince about that, instead I believe
it could go higher, check the tread below....
http://www.3stocksonfire.org/trading/index.php?topic=1374.msg22582#msg22582
Yeap. I still believe there will be profit taking before the close which will lead to profit taking on friday.
I believe its not yet the time to sell AMEP... This volume, and this breakout suggests continuation...
Lets see ;)
any comments? up 18% today.
I don't know..just saw how active the stock was and it broke .06...so i bought in at .0595...hope i did something smart :)
Anyone else jump in or still holding?
thanks and good luck!
julia
I'm still holding and waiting to see today's last hour action and the close.
If it's going strong in the close I'll hold more but if it's weak then I'll sell.
I wish some TA expert can draw some reasonable target but if not I'll just follow my gut.
Good luck to you.
My first attempt at a chart...lets see if its massive :)
AMEP giddy up ;D
julia
still have 400kshares of my original position at .025 and I repurchased my 200k shares I sold at .0535 at .056 for a total of 600k. As usual I will probably get slaughtered, but as I always do, " I have a feeling about this one." :o
Big jump today---tried to find sone news didn't see any.
Anybody find a reason why big jump today?
October 1, 2005
American Energy Production: Short Squeeze of the Year
American Energy Production Inc. (OTC: AMEP) is a prime example of a major short squeeze in progresss. On February 22, 2005, the company's shares hit a long term base when company management discontinued the Form 2-E offering which disclosed that the company received $1,820,000 of proceeds from the offering through the sale of 171,000,000 million shares. With an increase in outstanding shares to near 306,171,168 million, the company's shares took a dive to the sub-penny level, but finally bottomed out because the company was seeking alternative financing that was less dilutive. Eventually, good news about the company started to come out, including the most recent in which American Energy's subsidiary, Production Resources Inc. posted significant oil production increases on twelve test wells by as much as 500% for the month of August. Coupled with massive volume, the shares took a massive swing north in the month of September. It seems obvious to many traders that someone had aggressively shorted the stock, believing that it was just another dilutive penny stock scam. But with good news and volume, those same market makers who had shorted the stock were now climbing the bid to cover their shares.
posted by Ant & Sons @ 10/01/2005 10:54:00 AM 0 comments
Barnett Shale's rise can't offset declines
http://www.dfw.com/mld/dfw/business/12445062.htm
HIGHLIGHTS:
"The Barnett Shale natural-gas field in North Texas, which was opened to full production in 1999 and now has almost 4,000 wells, again stood out among Texas fields by increasing production by almost 17 percent. The field extends around Fort Worth from Wise to Johnson and Hood counties."
"Railroad Commission figures show that the field, concentrated in Wise, Denton and Tarrant counties, produced 210.2 billion cubic feet of gas through June of this year against 179.5 billion cubic feet a year ago, when the Barnett Shale field became Texas' largest producing field. In 2004, the Barnett Shale field produced 369 billion cubic feet of natural gas."
"Barnett Shale production is expected to keep growing as new pipelines and processing plants enable producers to pursue plans to drill in Johnson, Parker and Hood counties."
Gas Field is Hot, But Rigs Are Sparse
http://www.rigzone.com/news/article.asp?a_id=25234
HIGHLIGHTS:
...In midsummer this year, Patterson-UTI of Snyder, which owns about one-third of the nation's oil- and gas-drilling rigs, quoted day rates of $12,000 to $13,000 for rigs during July and August. Chairman Cloyce Talbott said the rate is likely to reach $15,000 during the fourth quarter.....
"...If you're an established producer with relationships with the driller and some contracts, you'll be able to get equipment," Lowe said. "If not, you'll have a tough time."....
--------------------
"si hoc legere scis nimium eruditiones habes."
Heres the picture imo,AMEP is worth .21 to .25 right now based on known assets and without any production of ONG or NG numbers included,when we reach the .20's if we have had no news or production rev numbers we should stay flat or bounce back and forth a little,but I am betting by then we will have a few PR's to add to the known assets and then increase the base value of AMEP therefore raising the base target PPS.From talks coming directly from the company and its investee's we have already at least estimated tripled production or even more,when the numbers comes in I think we all (including me)will be surprised.
congrats to all longs >:D
I was posting my AMEP DD on this tread, but on Sept 7th, 'velasis' accused me of pumping the stock. It was not pump "to the Moon, or buy. buy, buy," but results from a 1 1/2 years of research and numerous phone calls and mail that I was willing to share on this thread. There is a difference between pump and good thorough DD, ...go back and look at my posts. I am a serious investor, and posted my two million add at an average of .0141 made in August. That said I ceased sharing the DD on this thread ...I don't need the bash.
On sept 7th when velas posted that I was pumping, AMEP was in the .02 range, now less than a month later, it is about to beak into the .10 range. I guess it was not pump, ...huh velasis?
Let's see what this week brings, and yes there are real reasons for the move ................
GL AMEP longs.
... %^ greeneyedhawk
Hey Greeneyed1,
Your DD on the RB board is second to none my friend. Most on 3sof appreciate the in depth type stuff you post. Don't let one critic stop you. If anybody wants in depth analysis on AMEP outside of Davids initial speculations, I highly reccomend Greens posts on RB, Drillbit as well.
If you are right about AMEP, I will owe you in a big way. Keep on digging and posting.
While I add my congrats for anyone who's done well with AMEP, I have some troubling questions regarding this company, which are outlined in a separate thread:
http://www.3stocksonfire.org/trading/index.php?topic=2561.0
oicpecnoc, if your research has provided satisfactory answers to the questions I raise (particularly with reference to "HOA 800"), I'd appreciate hearing them.
hey greeneyedhawk...been lurking on RB and watching you and Drillbit deal out some real DD,please keep it up and I even used some on HSM board,I won't post on RB anymore,far too many squirrels in that cage.Looks like AMEP has become a day traders dream stock,they will surely enter early tomorrow and gap it up again and lately we have only had one red day a week so lets hope today is the day!And don't forget..we are now in week 3 and should get that PR on the new wells! Remeber last PR? 3 weeks!
heres a good post by birdo...kinda gives us a reality check I guess...LOL
A 3% loss after two days of 28% and 21% gains is a good day in my book, not much retracement there.
also Berlin is over .12 euros now!
look at the two year chart,I'll have to post the link...seems to me this has happened before in both directions,strong instant drop or increase near EOD. Also this ir more then After hours consolidation and if you have an offshore account you can trade after hours.
16:35:16 0.133 450900 OTCBB
16:29:38 0.098 15000 OTCBB
16:27:14 0.113 40000 OTCBB
16:02:17 0.102 100000 OTCBB
16:01:06 0.093 30000 OTCBB at Ask
15:59:56 0.094 98000 OTCBB
15:59:53 0.093 50000 OTCBB
15:59:52 0.093 31300 OTCBB
15:59:52 0.093 10200 OTCBB
15:59:52 0.093 85000 OTCBB
http://host.businessweek.com/businessweek/Historical_Quotes.html?Button= Get+Quotes&Format=0&Type=5&Symbol=AMEP&StartDate=10/03/05&EndDate=10/03/05
Hello Robt,
These are valid questions. I don't have the answers. This started as a momo trade, and I just kept on playing it. My complex mind is using the following formula.
High Oil and NG prices x lot of potential production = potential big profits.
Based on your posts, you are saying there is a good chance that if that profit is achieved it will all go to cb. Could be.
Could also be the shareholders will see some of it. Good risk/reward at .02/.03, maybe not so much at .10 Time will tell. Tomorrow I will probably sell some to recover my initial investment, and let the rest ride for free, and see where the story goes. David seems to agree with you, so you have someone wiser than I on your side.
Good luck with your trades.
AMEP DD #4 ...for New Eyes:(#4 of 5)
DD re EST AMEP REVENUES based on WELL SPACING, and also est revenues when all the leases are developed by Wholly owned Bend Arch, OAG, and PRI.
I talked to the CEO recently about the spacing on the horizontals, which typically produce about three or four times the amount of a vertical in the Barnett Shale. He said it would not be 40, more likely 80 or 160. I am figuring on the conservative figure of 160, which will make this stock valued in dollars, not pennies, after the 7,000 is covered with horizontals at 160 acre well spacing. I am also figuring 2 wells(5%) down at all times for servicing, and re-fracing to return the production back to near the original volume, per numerous DD sources.
A spacing of 160 acres, yields 43 wells less 2 wells for servicing for a total of 41 full time producers. I am figuring $2M gross per well at a VERY CONSERVATIVE $9 for NG ($14 now), $55 oil ($66 now). That gives a figure of $82M annual gross revenues from the Bend Arch leases alone when developed (on the conservative figure).
-----------------------
That does not count gross revenues from the 193 PRI existing well project, which will be substantial when the project is completed, and that should not take all that long now that the technique has been established, because drilling is not involved. I am estimating that 154 of the 193 wells will be producers, as one in five wells will be used to enter the HOA-800 treatment into the formation. I am figuring 7 wells (+5%) will be down at a time for servicing, leaving an average of 147 wells producing at any time.
The recent announcement, is that the HOA-800 treatment has been achieving as much as a 500% increase in the oil production from the 12 well test as of August.
It looks like CB will achieve his quest to bring AMEP to profitability with the help of PRI now that the program is finally going to be expanded to the existing 193 wells and working pumps program ...and fast, as no drilling is required.
This announcement finally gives us data to make some meaningful projections. Figures based on current well production spread over 12 wells gives sufficient average data for making estimated projections based on 12 well producing 987 barrels in 31 days. The average is 2.65 barrels per day, per well.
Now the program will expand to another 25 wells in the next 45 days. That will be a little better than a +200% increase in PRI wells in production in just 45 days. In 45 days the total HOA-800 treated wells will be 37. That gives 37 wells X 2.65 barrels X 30 days X $60 per barrel(what PRI got on last load) = 2,941 bbl X $60 = $176,460 per month from RPI only. That would be $529,380 gross revenues per next Quarter from wholly owned PRI ONLY, for 37 of the 193 well program. Note; one in 5 wells are used to inject the HOA-800 treatment. Figure a max of 154 producers.
Est Gross Revenues from PRI when field is completely treated:
Like I calculated, PRI has a net of approximately 154 producing wells of the 193 total, when the entire field has been treated. As one in five is used to inject the treatment.
154 wells X 2.65 barrels per day = 408 barrels per day PRI
408 barrels per day X 30 days = 12,240 bbl per Month.
12,240 X $55 (conservative) = $673,200 per month PRI
$673,200 X 3 Months = $2,019,600 per Quarter PRI (ONLY!)
$2,019,600 X 4 Quarters = $8,078,400 Annual gross Rev
That is over $8,000,000 from PRI only.
This MC and SP is so undervalued, the hard figures say so.
Profitability for AMEP is approaching fast.
Wholly owned Bend Arch will do even better, ...the NASH 1-c was not in the last Q.
AMEP longs, IMO the dynamics have really changed at AMEP with the big Ideco Rig acquisition, .....and now the 193 existing well PRI program will spread until the entire field has been treated. That is big news for Q increases in sales of Oil and NG.
-------------snip------yesterday's good news------
Production Resources, Inc. posted significant oil production increases after several months of testing various procedures utilizing AMEP HOA 800. PRI discovered a method of well treatment that combines the utilization of heat along with AMEP HOA-800 in a chemical process that has returned positive results. PRI has increased oil production from the Olmos formation on the 12 test wells by as much as 500% for the month of August. Plans are being implemented to expand the testing area to an additional 25 oil wells in the next 45 days. In august PRI produced 987 barrels of oil at gross sales of approximately $55,000.00
Charles Bitters, President of American Energy Production, Inc. stated, "This is the best month for oil production and revenues that PRI has done since AMEP bought the Company. PRI has been working extremely hard on achieving the desired results with AMEP HOA-800 and now believe its time to start expanding this treatment program. There is still room for improvement, but I believe PRI can now benefit because of current record high oil prices and increased production rates from the Olmos heavy oil sand field. This oil field is very difficult to produce because of the tight sand and the compaction of the heavy oil in the sand; still these are very exciting results."
Management cannot discuss the details and/or formulations being used with AMEP HOA- 800, but PRI believes the heat treatment once perfected can possibly be sold to other oil operators. The Company will keep investors informed of the expanded test results.
------------------------------- snip---
THEREFORE in conclusion on TOTAL est O&NG gross revenues:
My estimated total gross revenues for the 7,000 acres + 193 PRI well project, totals $82,000,000 + $8,078,400 = $90,078,400 gross revenues annually for AMEP.
------------------------------
That said I really believe energy prices will continue to rise over the next several years, with HUBBERT's PEAK production world wide at hand; and China, India, and South East Asia gobbling up energy in order to fuel their growing economies. If that happens the above estimated figures are calculated too low.
You must also consider that CB/CEO will be adding Barnett acreage as the company becomes profitable, ...as CB will grow this company.
All the above IMVHO, and are my VERY CONSERVATIVE estimated figures on $9 NG and $55 Oil, you may want to adjust upward to reflect todays prices, and projections for this winter.
GLTY all AMEP longs.
... %^ greeneyedhawk "GOT GAS?" Get AMEP for relief ;^)
American Energy Production Inc. Announces 20% Increase in 3rd Quarter Production Revenues for Two Investees
10/27/2005 07:00
American Energy Production Inc. (OTCBB: AMEP) announced today 3rd quarter production revenues for it's two wholly owned investees, Production Resources Inc. and Bend Arch Petroleum Inc.
American Energy Production Inc. investee, Production Resources Inc., sold approximately 2761 barrels of oil in the third quarter for total net oil revenue of $97,617.00.
Bend Arch Petroleum Inc. sold 2782 barrels of oil and 26,431 MCF of natural gas for approximate total gross revenue of $436,281. Total approximate gross revenues for Bend Arch Petroleum Inc. and Production Resources Inc. totaled $533,898.
Charles Bitters, President of American Energy Production Inc. stated, "Oil and Gas revenues in the 3rd quarter increased approximately 20% from the 2nd quarter even though Bend Arch Petroleum Inc has not been able to fracture stimulate several oil and gas wells due to a lack of water caused by the severe drought in the north Texas area. In fracture stimulating a well the amount of slick water required is over 5,000 barrels per well."
Mr. Bitters also stated, "After a few delays with mechanics and part order delays, we are pleased to announce that all drilling rig and mud pump engines started and ran without any major problems or repairs. The derrick should be raised in the next few days and then the drilling rig will be moved to a location on a Bend Arch Petroleum lease to drill a 3100 foot natural gas well and test out the rig."
Statements contained in this release, which are not historical facts, may be considered "forward-looking statements" and are based on current expectations and the current economic environment. We caution the reader that such forward-looking statements are not guarantees of future performance. Unknown risk, uncertainties, as well as other uncontrollable or unknown factors could cause actual results to materially differ from the result, performance, or expectations expressed or implied by such forward-looking statements.
That announcement should read 30% increase instead of 20%, if you check the math. I am expecting a corrective announcement, possibly Fri morning, or Mon at the latest.
BTW, I am travling to Mineral Wells Texas to watch the newly acquired Ideco drilling rig make it's first spud for AMEP. I will be there for a week for observation and detailed DD purposes starting next Tuesday.
Note that AMEP only lost $207K last Q, See Aug 31st News "AMEP Financials." The independent Barnett Shale DD, and historical well records of other companies in the Barnett, indicates that each new high production horizontal well should produce at least $2M per year, ..... per well. AMEP has 7,000 acres with 100% blanket coverage of the Barnett Shale formation below. AMEP will drill 20 wells per year with the new Ideco drilling rig, starting next week. AMEP looks to be profitable in short order.
GL all longs.
... %^ greeneyedhawk
Hi, Hawk. Any update on AMEP based on your trip? Are you still comfortable with the progress?
AMEP UPDATE: re-posted for my fellow AMEP longs, just wanted to let you know the bashers on the AMEP RB board that say that I am selling are lying, see for yourself the 16 Nov 'Scottrade' buys at the bottom of this post, where I copied my 654,249 shares of AMEP buys/add for today. I would think these buys 'speaks volumes' about how I feel about AMEP prospects, I'm putting my hard earned money on the line based on non-material information of what I saw and heard. The bashers that say I'm dumping apparently cannot read. Anyone is welcome to spend their dime, as I did, and go see the entire operations, ...anyone. Although I do not have to, I am sharing my DD here with many friends and a few relatives; and if anyone does not care to believe, they are welcomed to skip my posts. Once again I say to everyone who reads this post, do your own DD; do not solely rely on what a long, short, pumper, basher, fundamentalist, chart technician, or I may post, ...it's your money, make it your own DD.
Like everyone else, I am waiting on 'AMEP NEWS' of the start of the drilling program, or web site photos of the rig with it's derrick raised and ready to drill (see referenced drillin4oil RB post #48940).
---------re-post from earlier ----------
I told Charles Bitter's that I would wait until he post pictures on the newly acquired Ideco H-40 rotary drilling rig, before I posted my pictures and the corresponding notes. However I feel this one post would be OK, just to let everyone know that all I saw, and heard, was highly positive, and that I was still accumulating AMEP shares. This will be my only post, until the rig pictures are made available on the AMEP web site.
BTW, I am not involved with any of the limited partnerships, as that is a tax break for individual earning profits directly from Oil and NG sales. I feel the stock will return more bang for the buck, to the average investor like myself. I 'may' however reconsider in the future, since I am over-weighted in the stock; and would like the cash flow, while keeping the stock shares. Regardless, I will not be selling a share this year, and I still have every share of AMEP that I have ever bought. I do not plan on selling any shares until AMEP is trading in the dollars range, which I expect next year, based on ramping revenues from the drilling program, and AMEP turning a nice profit.
The rig is ready to go except for a torque converter that required re-building. I helped Mr. Bitters deliver that torque converter to a shop in Ft.Worth last Thursday afternoon while eleven experienced AMEP rig hands were busy with other minor tasks at hand, and I expect to hear it has been returned and installed at any time. Once that is done, the derrick will be raised and the rig will be photographed, and then will ready for drilling. All the engines and the turn table "runs like new", and that was how the experienced rig hands described it, "runs as smooth as a sewing machine" as another one said to me.
I am currently working with 'Rocky' on about 20 pictures and comments that will be posted on his fine "Unofficial AMEP Web Site". He will release those pictures right after AMEP releases theirs.
Based on the size and condition of the rig, plus seeing some of the wells that are currently producing, and seeing how knowledgeable and hard working the management and rig hands are, prompted me to continue to add to my position. Seeing the 3-D acquisition in the field was highly encouraging too, and will highly increase AMEP chances for drilling high producing horizontals in the Barnett formation, without hitting a fault/fracture that may run into Ellenberger formation below the Barnett, and bringing in water.
I thought it would only be fair to let my fellow longs know that I am still buying based on the above. I bought 1,405,000 shares this Monday, and a smaller, but additional amounts throughout the week. I plan on buying a few more too, to try and round out the position before the drilling program starts.
FWIW, I have also advised my family and close friends to buy now too, ... and they have.
GL all.
... %^ greeneyedhawk
(Note date below is settlement date, not trade date.)
Up Date Buy/add on Nov 16th for 654,249 shares:
Current Open Orders & Real-Time Executions
Today's Real-Time Executions
Action Quantity Name Symbol Price Total Order Account type Time executed Settlement Date
BOUGHT 50000 AMERICAN ENERGY PRODUCTION INC AMEP 0.044 2218.00 XWA609320051116 11:32:15 AM 11/21/05
BOUGHT 5000 AMERICAN ENERGY PRODUCTION INC AMEP 0.044 221.10 XWA609320051116 11:32:43 AM 11/21/05
BOUGHT 50000 AMERICAN ENERGY PRODUCTION INC AMEP 0.044 2211.00 XWA609320051116 11:33:13 AM 11/21/05
BOUGHT 8500 AMERICAN ENERGY PRODUCTION INC AMEP 0.044 375.87 XWA609320051116 11:35:02 AM 11/21/05
BOUGHT 15500 AMERICAN ENERGY PRODUCTION INC AMEP 0.048 754.72 XAA522620051116 12:46:38 PM 11/21/05
BOUGHT 10000 AMERICAN ENERGY PRODUCTION INC AMEP 0.048 482.40 XAA522620051116 12:47:03 PM 11/21/05
BOUGHT 5000 AMERICAN ENERGY PRODUCTION INC AMEP 0.0495 255.74 XTB800520051116 01:14:25 PM 11/21/05
BOUGHT 100000 AMERICAN ENERGY PRODUCTION INC AMEP 0.0495 4974.75 XTB800520051116 01:14:27 PM 11/21/05
BOUGHT 161666 AMERICAN ENERGY PRODUCTION INC AMEP 0.05 8123.71 XTB800520051116 01:14:45 PM 11/21/05
BOUGHT 50000 AMERICAN ENERGY PRODUCTION INC AMEP 0.0495 2494.38 XGA700920051116 01:17:29 PM 11/21/05
BOUGHT 333 AMERICAN ENERGY PRODUCTION INC AMEP 0.0495 16.56
XGA700920051116 01:17:33 PM 11/21/05
BOUGHT 5000 AMERICAN ENERGY PRODUCTION INC AMEP 0.0495 255.74 XMA000120051116 01:22:34 PM 11/21/05
BOUGHT 13550 AMERICAN ENERGY PRODUCTION INC AMEP 0.0495 674.08 XMA000120051116 01:22:41 PM 11/21/05
BOUGHT 11250 AMERICAN ENERGY PRODUCTION INC AMEP 0.048 549.70 XLB935720051116 01:32:27 PM 11/21/05
BOUGHT 10000 AMERICAN ENERGY PRODUCTION INC AMEP 0.048 489.40 XPB321520051116 01:38:26 PM 11/21/05
BOUGHT 1200 AMERICAN ENERGY PRODUCTION INC AMEP 0.048 57.89
XPB321520051116 01:39:44 PM 11/21/05
BOUGHT 23950 AMERICAN ENERGY PRODUCTION INC AMEP 0.049 1186.42 XRA945220051116 02:09:23 PM 11/21/05
BOUGHT 90000 AMERICAN ENERGY PRODUCTION INC AMEP 0.0495 4484.28 XHA029720051116 02:51:59 PM 11/21/05
BOUGHT 10000 AMERICAN ENERGY PRODUCTION INC AMEP 0.0495 497.47 XHA029720051116 02:55:59 PM 11/21/05
BOUGHT 33300 AMERICAN ENERGY PRODUCTION INC AMEP 0.0495 1656.59 XHA029720051116 03:01:12 PM 11/21/05
FYI & FWIW.
... %^ greeneyedhawk
Quote from: greeneyedhawk on November 17, 2005, 01:21:53 AM
AMEP UPDATE: re-posted for my fellow AMEP longs, just wanted to let you know the bashers on the AMEP RB board that say that I am selling are lying, see for yourself the 16 Nov 'Scottrade' buys at the bottom of this post, where I copied my 654,249 shares of AMEP buys/add for today. I would think these buys 'speaks volumes' about how I feel about AMEP prospects, I'm putting my hard earned money on the line based on non-material information of what I saw and heard. The bashers that say I'm dumping apparently cannot read. Anyone is welcome to spend their dime, as I did, and go see the entire operations, ...anyone. Although I do not have to, I am sharing my DD here with many friends and a few relatives; and if anyone does not care to believe, they are welcomed to skip my posts. Once again I say to everyone who reads this post, do your own DD; do not solely rely on what a long, short, pumper, basher, fundamentalist, chart technician, or I may post, ...it's your money, make it your own DD.
Like everyone else, I am waiting on 'AMEP NEWS' of the start of the drilling program, or web site photos of the rig with it's derrick raised and ready to drill (see referenced drillin4oil RB post #48940).
---------re-post from earlier ----------
I told Charles Bitter's that I would wait until he post pictures on the newly acquired Ideco H-40 rotary drilling rig, before I posted my pictures and the corresponding notes. However I feel this one post would be OK, just to let everyone know that all I saw, and heard, was highly positive, and that I was still accumulating AMEP shares. This will be my only post, until the rig pictures are made available on the AMEP web site.
BTW, I am not involved with any of the limited partnerships, as that is a tax break for individual earning profits directly from Oil and NG sales. I feel the stock will return more bang for the buck, to the average investor like myself. I 'may' however reconsider in the future, since I am over-weighted in the stock; and would like the cash flow, while keeping the stock shares. Regardless, I will not be selling a share this year, and I still have every share of AMEP that I have ever bought. I do not plan on selling any shares until AMEP is trading in the dollars range, which I expect next year, based on ramping revenues from the drilling program, and AMEP turning a nice profit.
The rig is ready to go except for a torque converter that required re-building. I helped Mr. Bitters deliver that torque converter to a shop in Ft.Worth last Thursday afternoon while eleven experienced AMEP rig hands were busy with other minor tasks at hand, and I expect to hear it has been returned and installed at any time. Once that is done, the derrick will be raised and the rig will be photographed, and then will ready for drilling. All the engines and the turn table "runs like new", and that was how the experienced rig hands described it, "runs as smooth as a sewing machine" as another one said to me.
I am currently working with 'Rocky' on about 20 pictures and comments that will be posted on his fine "Unofficial AMEP Web Site". He will release those pictures right after AMEP releases theirs.
Based on the size and condition of the rig, plus seeing some of the wells that are currently producing, and seeing how knowledgeable and hard working the management and rig hands are, prompted me to continue to add to my position. Seeing the 3-D acquisition in the field was highly encouraging too, and will highly increase AMEP chances for drilling high producing horizontals in the Barnett formation, without hitting a fault/fracture that may run into Ellenberger formation below the Barnett, and bringing in water.
I thought it would only be fair to let my fellow longs know that I am still buying based on the above. I bought 1,405,000 shares this Monday, and a smaller, but additional amounts throughout the week. I plan on buying a few more too, to try and round out the position before the drilling program starts.
FWIW, I have also advised my family and close friends to buy now too, ... and they have.
GL all.
... %^ greeneyedhawk
(Note date below is settlement date, not trade date.)
Up Date Buy/add on Nov 16th for 654,249 shares:
Current Open Orders & Real-Time Executions
Today's Real-Time Executions
Action Quantity Name Symbol Price Total Order Account type Time executed Settlement Date
BOUGHT 50000 AMERICAN ENERGY PRODUCTION INC AMEP 0.044 2218.00 XWA609320051116 11:32:15 AM 11/21/05
BOUGHT 5000 AMERICAN ENERGY PRODUCTION INC AMEP 0.044 221.10 XWA609320051116 11:32:43 AM 11/21/05
BOUGHT 50000 AMERICAN ENERGY PRODUCTION INC AMEP 0.044 2211.00 XWA609320051116 11:33:13 AM 11/21/05
BOUGHT 8500 AMERICAN ENERGY PRODUCTION INC AMEP 0.044 375.87 XWA609320051116 11:35:02 AM 11/21/05
BOUGHT 15500 AMERICAN ENERGY PRODUCTION INC AMEP 0.048 754.72 XAA522620051116 12:46:38 PM 11/21/05
BOUGHT 10000 AMERICAN ENERGY PRODUCTION INC AMEP 0.048 482.40 XAA522620051116 12:47:03 PM 11/21/05
BOUGHT 5000 AMERICAN ENERGY PRODUCTION INC AMEP 0.0495 255.74 XTB800520051116 01:14:25 PM 11/21/05
BOUGHT 100000 AMERICAN ENERGY PRODUCTION INC AMEP 0.0495 4974.75 XTB800520051116 01:14:27 PM 11/21/05
BOUGHT 161666 AMERICAN ENERGY PRODUCTION INC AMEP 0.05 8123.71 XTB800520051116 01:14:45 PM 11/21/05
BOUGHT 50000 AMERICAN ENERGY PRODUCTION INC AMEP 0.0495 2494.38 XGA700920051116 01:17:29 PM 11/21/05
BOUGHT 333 AMERICAN ENERGY PRODUCTION INC AMEP 0.0495 16.56
XGA700920051116 01:17:33 PM 11/21/05
BOUGHT 5000 AMERICAN ENERGY PRODUCTION INC AMEP 0.0495 255.74 XMA000120051116 01:22:34 PM 11/21/05
BOUGHT 13550 AMERICAN ENERGY PRODUCTION INC AMEP 0.0495 674.08 XMA000120051116 01:22:41 PM 11/21/05
BOUGHT 11250 AMERICAN ENERGY PRODUCTION INC AMEP 0.048 549.70 XLB935720051116 01:32:27 PM 11/21/05
BOUGHT 10000 AMERICAN ENERGY PRODUCTION INC AMEP 0.048 489.40 XPB321520051116 01:38:26 PM 11/21/05
BOUGHT 1200 AMERICAN ENERGY PRODUCTION INC AMEP 0.048 57.89
XPB321520051116 01:39:44 PM 11/21/05
BOUGHT 23950 AMERICAN ENERGY PRODUCTION INC AMEP 0.049 1186.42 XRA945220051116 02:09:23 PM 11/21/05
BOUGHT 90000 AMERICAN ENERGY PRODUCTION INC AMEP 0.0495 4484.28 XHA029720051116 02:51:59 PM 11/21/05
BOUGHT 10000 AMERICAN ENERGY PRODUCTION INC AMEP 0.0495 497.47 XHA029720051116 02:55:59 PM 11/21/05
BOUGHT 33300 AMERICAN ENERGY PRODUCTION INC AMEP 0.0495 1656.59 XHA029720051116 03:01:12 PM 11/21/05
FYI & FWIW.
... %^ greeneyedhawk
Posted here......no need to do a re-write.
http://www.3stocksonfire.org/trading/index.php?topic=1272.90
Looking good.................. 8)
AMERICAN ENERGY PROD (OTC BB:AMEP.OB) Delayed quote data
Last Trade: 0.063
Trade Time: 2:24PM ET
Change: 0.013 (26.00%)
Prev Close: 0.05
Open: 0.05
Bid: 0.06 x 5000
Ask: 0.063 x 5000
1y Target Est: N/A
Day's Range: 0.049 - 0.064
52wk Range: 0.01 - 0.26
Volume: 12,648,944
Avg Vol (3m): 26,331,500
Market Cap: 19.03M
P/E (ttm): N/A
EPS (ttm): -0.006
Div & Yield: N/A (N/A)
Press Release Source: American Energy Production Inc.
American Energy Production Inc. Releases Update to Shareholders on the Progress of the Ideco Drilling Rig
Friday November 18, 8:00 am ET
MINERAL WELLS, Texas--(BUSINESS WIRE)--Nov. 18, 2005--American Energy Production Inc. (OTCBB:AMEP - News) announced an update to shareholders on the most recent progress of the Ideco drilling rig purchased by Investee AMEP Strategic Investments Inc. The refurbishing of the Ideco oil drilling rig is now complete. The mud pump engines and the draw works engines are running with no problems. The company is extremely happy with these results. Overhauling two torque converters on the draw works engines are completed and re-installed and ready to operate. Pressure washing and new paint on the rig is also complete. The derrick will be raised ASAP and pictures of the drilling rig will be posted on the websites of AMEP and Oil America Group.
Bend Arch Petroleum Inc. will move the drilling rig to Bend Arch Petroleum Inc., 12 well property, and drill a 3,100 foot developmental well. This well will have four to five potential natural gas formations that could produce 200,000 to 300,000 cubic feet of natural gas per day, however there are no guarantees the well will be commercial.
In a recent news announcement, the extensive 3-D seismic study on 2500+ acres, consisting of two tracts, in Central and North Central Palo Pinto County, Texas for Bend Arch Petroleum Inc. will be completed this weekend. The purpose of the seismic evaluation is to prepare the way for the re-entry and deepening of two existing wells by Bend Arch Petroleum Inc. into the Barnett Shale formation with horizontal lines and two proposed new joint venture horizontal Barnett Shale wells to be drilled by Oil America Group over the next few months. As stated previously this 3-D seismic shoot will take some of the guess work out of staking locations for the horizontal Barnett shale wells.
As previously announced AMEP has posted its best 3rd quarter ever. With the Ideco drilling rig becoming operational and our Production Resources Inc. oil properties having great success with AMEP HOA 800 our forward-looking guidance looks positive for a strong 4th quarter and 1st quarter of 2006.
Statements contained in this release, which are not historical facts, may be considered "forward-looking statements" and are based on current expectations and the current economic environment. We caution the reader that such forward-looking statements are not guarantees of future performance. Unknown risks, uncertainties, as well as other uncontrollable or unknown factors could cause actual results to materially differ from the result, performance, or expectations expressed or implied by such forward-looking statements.
Contact:
American Energy Production Inc.
Charles Bitters, 210-410-8158
www.americanenergyproduction.com
or
Oil America Group Inc.
Joe Christopher, 972-386-0601
[email protected]--------------------------------------------------------------------------------
Source: American Energy Production Inc.
AMEP DD #4 ...for New Eyes:(#4 of 5) ***Revised December 12, 2005.
This AMEP DD regarding ESTIMATED AMEP REVENUES is based on estimated well spacing, and estimated formation production of natural gas and oil, when all of the 7,000 acres of the Barnett Shale leases are developed by AMEP’s who lly owned BAP and OAG, with SI’s newly acquired Ideco H-40 drilling rig; and when wholly owned PRI completes it’s 193 heavy oil well program.
During my recent visit to AMEP in Mineral Wells Texas, I talked to the CEO Charles Bitters about the estimated spacing on the horizontal and vertical wells. A most important item that I was made aware of, is that the Texas Railroad Commission (TRRC) allows well spacing that can overlap if the wells are producing from completely different formations (horizons). So my previous DD #4 figures, for the amount of wells that can be drilled on Bend Arch’s 7,000 acres, based on a flat 160 acre well spacing for the horizontals, was grossly underesti mating the number of wells that will be drilled on these leases. For example, a vertical well into the Strawn Sands formation could be near another vertical well in the Bend Conglomerate formation, which could be near a horizontal well into the Barnett Shale formation, which could be near another horizontal well in the Marble Falls formation, etc. There are a total of 11 hydrocarbon pay zone formations on these leases.
The upper production formations, mostly sandstone and limestone, are reservoir rock horizons from hydrocarbons seeping from the Barnett shale source rock below, and are found throughout the Barnett leases. These leases are being held without expiration by the currently producing wells in these upper formations. No one upper formation covers the entire leases; some have the Strawn, and/or the Bend Conglomerate, and/or the Caddo, and/or Duffer, etc, most have several upper pay zones. For example, the lease in Comanche County, East of Gorman, has the Duffer as the upper pay zone (Google “Duffer limestone oil gas formation”) which is not present on the other leases. Mr. Bitters’ plan was to buy leases that were already producing in the upper zones to hold the leases, gain revenues cheaply, while planning the exploitation of the deeper and more prolific Marble Falls and Barnett Shale formations. Many geologist believe that these prolific upper pay zones, are a primary indicator of potentially high production from the source rock below, the Barnett Shale formation on AMEP’s leases.
Although the TRRC commonly a llows a 40 acre spacing on these upper formations, for this DD I am conservatively figuring a 60 acre spacing, a 50% cushion. That spacing calculates the number of potential verticals at 116 wells for the 7,000 acres(that includes the present producing wells). I am also estimating a very conservative 250,000 cubic feet of NG per day. Although some of these wells are gas only, and some are gas and oil; I am conservatively ‘not’ figuring any of the oil that some of these wells will produce. I am also very conservatively figuring natural gas at $9 per 1,000 cubic feet (million BTU). That calculates out to $2,250 per well per day, or $787,500 per year, per well, for only 350 days (15 days for servicing), or $91,350,000 per year when the entire upper zones only on the properties are drilled and developed. Keep in mind that these upper zones can overlap in well spacing, which these figures do not reflect, I do not have enough data at this point in time to figure the overlaps, actual results will yield that data later on in the drilling program. Therefore these figures could be very conservative in a considerable way.
On the other hand, the Barnett Shale and the Marble Falls Limestone are a 100% blanket coverage under the leases, which is bullish since these two formations are by far potentially the biggest producers of both NG and the light grade condensate oil coming out with the NG. Future high production horizontal wells are planned for these two formations. The Barnett Shale and the Marble Falls also have the lion’s share of the hydrocarbon reserves on AMEP’s leases. The independent US government agency USGS says:
“Fort Worth, Texas, is built on top the Barnett Shale natural gas field, a field so vast that the U.S. Geological Service estimates that the field contains some 26 trillion cubic feet of yet to be discovered natural gas. Estimates are that as much as 160 billion cubic feet of natural gas are in place per square mile in the Barnett Shale formation. "The Barnett Shale formation," has rightfully emerged as the largest natural gas field in Texas and one of the most important natural gas fields in the nation."
The newly acquired 3-D survey and analysis will shed additional light on the various production zones capabilities, and the extent of the in-ground reserves, as well as show faults and fractures that are to be avoided in most cases.
Horizontals with long laterals, typically produce about five or ten times the amount of a vertical in the Barnett Shale per various sources that I have talked to and read. The TRRC will likely allow at least a 160 acre spacing. Mr Bitters told me that some of the major producers in the Barnett are ‘experimenting’ with much closer spacing with the blessing of the TRRC, however he said that they were getting some so close that they were taking some of the pressure off their own neighboring wells. Mr. Bitters indicated he has no intention of pushing the production envelope or getting greedy, since there will be plenty of future AMEP wells at the 160 acre spacing that will produce for a long time, possibly 20 to 30 years, and some geologist and petroleum engineers say they will produce much longer than that. An important factor that is highly favorable for Barnett horizontal wells, is that they come back to near original production when re-fraced, that is a fact based on the current technology and actual experience from producers in the Barnett.
Special note concerning a future horizontal into the Marble Falls limestone formation; AMEP will be the first to drill a horizontal in this formation as far as Mr. Bitters knows. This will ‘not’ be done early on in the drilling schedule, as the horizon tal in the Marble Falls Limestone is somewhat experimental, and that can wait until higher cash flows are established from the Barnett wells scheduled first for horizontal entries. Currently one of AMEP’s best producers of NG and light condensate oil is a vertical into the Marble Falls. Mr. Bitters said there was a good chance that some of the Marble Falls horizontal wells could equal, or possibly out produce some of the Barnett Shale horizontals based on what they have coming out of the vertical Marble Falls well (which BTW needs to be re-fraced when rains fill the ponds, like so many other AMEP wells currently producing, to bring the production back up.) Mr. Bitters believes a good high-pressure frac will be the key to yielding high production NG and condensate oil from the Marble Falls (and the Barnett too).
Another interesting fact concerns the Ellenberger Dolomite formation (Google Ellenberger oil gas formation). Although in most cases the Ellenberger, which is right below the Barnett, is to be avoided because it is a water bearing formation. However under certain circumstances the Ellenberger formation can be a big oil and NG producer from ‘highs’ in the formation, ‘if’ your lease is lucky enough to have such highs. Since oil and gas floats on top of water, these highs, particularly if it is a rare and ancient reef as sometimes found, can be like hitting the jackpot in the patch. The drilling technique is to use 3-D data and simply drill a deep vertical into the highest point of the formation. The deep pressures from the weight of the earth above, plus the water below the oil and gas, pushes the oil and gas to the surface typically with a strong force. These can be very high production vertical wells, but require drilling deep. That said, I am not figuring in any Ellenberger wells, ‘if’ that happens, it will be a nice bonus.
I am figuring on the conservative spacing figure of 160 acres per Barnett horizontal, and also a 160 acre spacing for the Marble Falls. I am also figuring 2 wells(5%) in each formation will be down at all times for servicing, and re-fracing to return the production back to near the original volume, per numerous DD sources.
A spacing of 160 acres, yields 43 wells per Barnett formation, and another 43 wells per Marble Falls formation, less 4 wells for s ervicing, for a total of 41 wells in each formation, or 82 full time horizontal producers.
Based on the various historical data figures, including vertical wells already drilled into the Barnett and Marble Falls on AMEP leases, it is estimated that these wells will produce 2.5 million cubic feet of gas per day, and 500 barrels of light grade condensate oil per day; however I am taking the conservative figures of 1 million cubic feet of gas per day, and 300 barrels of oil per day.
I am figuring gross per well at a VE RY CONSERVATIVE $9 for NG , and $55 for oil. That yields $9,000 per day per well in natural gas, and $16,500 for the light grade condensate oil (which actually pays a premium, but being conservative I am staying with $55 oil). At 350 days, that calculates out to $3,150,000 for NG, and $5,775,000 for oil per horizontal well, or $8,925,000 per horizontal well for the NG and oil.
That calculates out to $365,925,000 per year for the Barnett alone, after all the wells are drilled and developed. Conservatively, I am cutting that figure in half for the Marble Falls, but will re-figure after a horizontal is drilled and developed in that formation. That conservatively yields $182,962,500 for the NG and oil in the Marble Falls per year, after all the wells are drilled and developed.
That does not count gross revenues from the 193 PRI existing well project, which will be substantial when the project is completed, and that should not take all that long now that the technique has been established, because drilling is not involved. I am estimating that 154 of the 193 wells will be producers, as one in five wells will be used to enter the HOA-800 treatment into the formation. I am figuring 7 wells (+5%) will be down at a time for servicing, leaving an average of 147 wells producing at any time.
The recent announcement, is that the HOA-800 treatment has been achieving as much as a 500% increase in the oil production from the 12 well test as of August. It looks like CB will achieve his quest to bring AMEP to profitability with the help of PRI now that the program is finally going to be expanded to the existing 193 wells and working pumps program ...and fast, as no drilling is required.
This announcement f inally gives us data to make some meaningful projections. Figures based on current well production spread over 12 wells gives sufficient average data for making estimated projections based on 12 well producing 987 barrels in 31 days. The average is 2.65 barrels per day, per well.
Now the program will expand to another 25 wells in the next 45 days. That will be a little better than a +200% increase in PRI wells in production in just 45 days. In 45 days the total HOA-800 treated wells will be 37. That gives 37 wells X 2.65 barrels X 30 days X $50 per barrel (reduced to $50 from $55 because it is heavy oil) = $147,075 per month from RPI only for the 37 wells. Note; one in 5 wells are used to inject the HOA-800 treatment. Figure a max of 154 producers. Est Gross Revenues from PRI when field is completely treated:
Like I calculated, PRI has a net of approximately 154 producing wells of the 193 total, when the entire field has been treated, as one in five is used to inject the treatment.
154 wells X 2.65 barrels per day = 408 barrels per day PRI
408 barrels per day X 30 days = 12,240 bbl per Month.
12,240 X $50 (conservative) = $612,000 per month PRI
$612,000 X 3 Months = $1,836,000 per Quarter PRI only.
$7,344,000 annually from PRI (which should be completed in a relatively short time since no drilling is required).
Grand Totals:
The total annual estimated revenues after AMEP has developed the entire leases it now holds is:
116 Verticals in the upper zones = $91,350,000
41 horizontal wells in the Barnett Shale = $365,925.000
41 horizontal wells in the Marble Falls = $182,962,500
PRI 154 producing heavy oil wells = $7,344,000
AMEP gross annual revenues after all the leases are drilled and developed = $647,581,500
AMEP longs, IMO the dynamics have really changed dramatically at AMEP with the Ideco H-40 drilling rig acquisition, considering the significant NG and oil reserves in the ground under AMEP leases.
I really believe energy prices will continue to rise over the next several years, with HUBBERT's PEAK production world wide at hand; and China, India, and South East Asia gobbling up energy in order to fuel their growing economies. If that happens the above conservative estimated figures are probably calculated too low.
You must also consider that CEO will be adding Barnett acreage as the company becomes profitable, ...as Mr Bitters will grow this company.
All the above IMVHO, and are my VERY CONSERVATIVE estimated figures on $9 NG and $55 Oil ($50 heavy oil for PRI) you may want to adjust upward to reflect today’s prices, and projections for this winter. GLTY all AMEP longs.
... %^ greeneyedhawk
Greeneyedhawk,
I appreicate the information. Please keep posting. I am holding long.
Thanks
Lalitha
Amep up 18% near close some thing is cooking
I think PR is on the way probably tommorow
AMEP Natural Gas & Oil closed up 18%. AMEP is starting to break out above the trend line. Also with the drilling permit now approved, I'm expecting 'NEWS' anyday now that the drilling program has officially started, with the first spud made by AMEP's own acquired drilling rig. The Ideco drilling rig is now being set up on the drilling site over the conductor hole, (the conductor hole already completed).
AMEP is a natural gas and oil company with it's own drilling rig, and 100 percent blanket coverage of 7,000 AMEP acres of prime Barnett Shale formation, the largest and most prolific Natural Gas in ground reserves in the US, on-shore.
GLTY.
... %^ greeneyedhawk
BTW, can someone tell me how to post a chart on 3stocksonfire, (apparently not like iHub)TIA
under your textbox from your reply, you can click the 'additional options...' feature, then you can attach a file!
go ahead and try!
any news ? but it is up 22%
Is it the flag break out which may explain the 28% up of AMEP.ob or else could that be link to the big increase of the NY Brent today, up 3% to 66$?
Perhaps both!
AMEP, UP + 20%, breaking out above the 50MA, continuing the up trend on a technical reversal started last week on no news.
AMEP is an Oil and Natural Gas production company. Newly acquired and wholly owned drilling rig has been set up on site now, drilling permit granted, mud pits and tanks being prepped, expecting drilling news soon.
... %^ greeneyedhawk
Hi greeneyedhawk,
QuoteNewly acquired and wholly owned drilling rig has been set up on site now, drilling permit granted, mud pits and tanks being prepped, expecting drilling news soon.
about oil and gaz compagny,
does AMEP.ob need to own the field were they work?
I just like to know more about the all subject.
Can you devellop about the all bizness of oil and gaz exctraction, the subject is so hot on those days!
Thanks.
AMEP Good NEWS! AMEP Oil and Natural Gas Drilling NEWS:
American Energy Production Inc. Announces Investee Bend Arch Petroleum Inc. Begins Drilling Operations with Ideco H-40 Drilling Rig
Wednesday January 18, 8:00 am ET
MINERAL WELLS, Texas--(BUSINESS WIRE)--Jan. 18, 2006--American Energy Production Inc. (OTCBB:AMEP - News) announced today the beginning of drilling operations by Bend Arch Petroleum Inc. with its Ideco H-40 drilling rig.
Surface casing has been set and cemented on Bend Arch Petroleum 12 well Palo Pinto lease Hart #8 well. The H-40 drilling rig will begin drilling out from under surface pipe on Thursday January 19. Originally this well was scheduled to be a 3,500 foot Strawn sand natural gas well to test several shallow sands and also to evaluate the Ideco H-40 drilling rig. However, after beginning drilling operations management decided a deeper test to the top of the Ellenberger formation would be a more viable use of resources for two reasons.
The first reason is the Company recently completed an extensive 3-D seismic study on 2500+ acres, consisting of two tracts, in Central and North Central Palo Pinto County, Texas and to help evaluate the
3-D seismic shot, a sonic log needs to be run to the top of the Ellenberger formation to help tie the mapping of the faults together. The second reason to drill a deeper test well is the possibility that a Barnett Shale or Marble Falls formation or a Bend Conglomerate formation well can be successful. After electric logging is completed the well will be evaluated to determine if the well will be horizontally drilled in the Barnett Shale formation.
For more information, please log on to our website: www.americanenergyproduction.com.
FYI and DD.
... %^ greeneyedhawk
Hi Pharubx, You asked:
"about oil and gaz compagny,
does AMEP.ob need to own the field were they work?"
I just like to know more about the all subject.
Can you devellop about the all bizness of oil and gaz exctraction, the subject is so hot on those days!
Thanks."
Almost without exception, Oil and NG (Natural Gas) companies lease the land they drill and develop. The leasee gets a nice royalties on the sales, plus an upfront per acre payment. Usually the leasees royalties are between 15% to 35%(but not always), depending on too many factors to list here, but in AMEP's case the leases included giving AMEP working wells in the shallower formations, pumps, pipelines, oilstorage tanks, NG compressors, etc. so their royalties are at the top end. 'Unproven' leases, with no 3-D, no Oil and NG assets, no equipment, no NG pipelines on or leading to the property, no working wells with zero Oil and NG income,... will bring closer to the low end.
AMEP has an exceptionally good lease contract. The leases do not have to be renewed periodacially, because the production from the uppper formations holds the leases, while AMEP goes a little deeper for the lucrative Marble Falls, and the prolific Barnett Shale NG and high grade 'condensate oil' with their newly acquired drilling rig. Also the upper formations were poorly developed by the previous owner, and AMEP can develop many new, and higher production wells in the upper Strawn and Conglomerate formations. These wells are 'low cost' to drill and are done quickly as compared to the deeper horizontals AMEP will put into the Barnett, and later on the Marble Falls.
GLTY Pharubx,
... %^ greeneyedhawk
Thursday, February 23 2006 8:30 AM, EST
American Energy Production Inc. Announces Major New Development and Strategic Acquisition
MINERAL WELLS, TX -- (MARKET WIRE) -- 02/23/06 -- American Energy Production Inc. (OTC BB: AMEP) is pleased to announce investee Bend Arch Petroleum has acquired another drilling rig in a joint venture agreement with Armadrill USA, a subsidiary of Aramadrill Mexico.
The acquisition consists of a Challenger 360 Drilling Rig capable of drilling to a depth of 6,000 feet as well as drilling horizontal wells in the Barnett Shale. In today's environment this deal greatly expands the business plan of Bend Arch Petroleum Inc. Profit potential for Bend Arch Petroleum Inc. will be greatly enhanced. Not only does this give the company the ability to use the rig on Bend Arch Petroleum's own drilling projects but management will now be able to contract the rig to other oil and natural gas operators for high drilling prices. The Challenger 360 rig will enable Bend Arch Petroleum to acquire working interests in other wells increases our diversification with drilling oil and natural gas wells and also producing oil and gas wells. Discussions are already underway on several drilling projects.
Charles Bitters, President of American Energy Production Inc., stated, "With the exception of the purchase of our Ideco H-40 Drilling Rig, this is the most significant development of our company to date. I believe this deal greatly improves our future balance sheet and will make the drilling operation more efficient. I believe we are positioning The Company to be a major player in the Barnett Shale natural gas play. Also, the alliance Bend Arch Petroleum Inc. and Armadrill USA have formed will enable Bend Arch Petroleum to buy drilling equipment out of Mexico that is not available in the United States at this time."
Like the Ideco H-40 rig, the Armadrill rig needs some preparation work. The rig is already in Bend Arch Petroleum yard in Mineral Wells, Texas, and is being worked on daily. Management looks forward to the announcement of our first drilling contract or first Company project in the Barnett Shale.
AMEP Major NEWS, acquires 2nd Drilling rig: AMEP will fly!
American Energy Production Inc. Announces Major New Development and Strategic Acquisition
Thursday February 23, 8:30 am ET
MINERAL WELLS, TX--(MARKET WIRE)--Feb 23, 2006 -- American Energy Production Inc. (OTC BB:AMEP.OB - News) is pleased to announce investee Bend Arch Petroleum has acquired another drilling rig in a joint venture agreement with Armadrill USA, a subsidiary of Aramadrill Mexico.
The acquisition consists of a Challenger 360 Drilling Rig capable of drilling to a depth of 6,000 feet as well as drilling horizontal wells in the Barnett Shale. In today's environment this deal greatly expands the business plan of Bend Arch Petroleum Inc. Profit potential for Bend Arch Petroleum Inc. will be greatly enhanced. Not only does this give the company the ability to use the rig on Bend Arch Petroleum's own drilling projects but management will now be able to contract the rig to other oil and natural gas operators for high drilling prices. The Challenger 360 rig will enable Bend Arch Petroleum to acquire working interests in other wells increases our diversification with drilling oil and natural gas wells and also producing oil and gas wells. Discussions are already underway on several drilling projects.
Charles Bitters, President of American Energy Production Inc., stated, "With the exception of the purchase of our Ideco H-40 Drilling Rig, this is the most significant development of our company to date. I believe this deal greatly improves our future balance sheet and will make the drilling operation more efficient. I believe we are positioning The Company to be a major player in the Barnett Shale natural gas play. Also, the alliance Bend Arch Petroleum Inc. and Armadrill USA have formed will enable Bend Arch Petroleum to buy drilling equipment out of Mexico that is not available in the United States at this time."
Like the Ideco H-40 rig, the Armadrill rig needs some preparation work. The rig is already in Bend Arch Petroleum yard in Mineral Wells, Texas, and is being worked on daily. Management looks forward to the announcement of our first drilling contract or first Company project in the Barnett Shale.
FYI and DD,
... %^ greeneyedhawk
News must be comming spike up in volume & price late in day. Too bad we didn't get news early like somebody did. Maybe they got the new Riggs on site and working....
Like I thought somebody got the word early as usual !...
AMEP -- American Energy Production, Inc.
Com ($0.0001)
COMPANY NEWS AND PRESS RELEASES FROM OTHER SOURCES:
American Energy Production Inc. Announces Update on Bend Arch Petroleum Hart #1 Natural Gas Well
MINERAL WELLS, TX, Mar 28, 2006 (MARKET WIRE via COMTEX) -- American Energy Production Inc. (OTC BB: AMEP) announced successful completion of drilling operations by Bend Arch Petroleum's Ideco H-40 drilling rig, Phantom Rig I on the Hart # 8 natural gas well. The drilling depth of the Bend Arch Petroleum's Hart # 8 reached 3,257 feet, the target depth of the original well plan to test the Keechi Farms Strawn sand.
The Hart # 8 natural gas well was electrically logged on March 12 and petroleum engineers determined the well bore has five potential oil and natural gas formations. 5 1/2' casing was cemented to the total depth of 3,257 feet. The Hart # 8 well has been acidized in the Keechi Farms Strawn sand and on Monday, March 27, the well was fractured stimulated. Management and treating company engineers determined the frac job was successful and now the frac water has to be recovered to determine the natural gas flow rate. The frac fluid should be recovered in four to seven days.
The Ideco Phantom Rig I will be moving to a second well on the Palo Pinto 12 well project and a location with a Ellenberger or a Mississippi reef high determined by the extensive seismic shoot recently completed by Bend Arch Petroleum Inc. will be the target. The seismic mapping determined the location to be 70+ feet high to other Ellenberger formations in the area. The new well will be drilled into the Ellenberger Formation and then electric logs will determine if the unusually high formation will be a successful oil or natural gas producer. The Barnett Shale formation is above the Ellenberger formation and engineers will determine if a horizontal completion is also available in the Barnett Shale since this location is approximately 1,000 feet from the Murphy #1 Barnett Shale well that has produced over $1,000,000.00 since July of 2004.
Charles Bitters, President of American Energy Production Inc., stated, "The Company is very excited with the opportunities that the Phantom Rig I will give Bend Arch Petroleum and Oil America Group to drill and participate in many new natural gas wells and oil wells. We believe the Company will expand its operations dramatically in the next few months."
About American Energy Production, Inc.
American Energy Production Inc. is a Business Development Company. A BDC company is regulated under the 1940 SEC act. That act set out procedures by which a Company, once it establishes a majority position in a Company, can make a series of further investments in its 'investee.' A BDC company does not consolidate financial statements with its investees and each investee operates independently.
The value of a BDC is derived by adding the value of each of the investees. In the case of AMEP, each investee's oil and gas leases and producing properties and equipment will be evaluated by a oil and gas appraiser and then the independent members of the Board of Directors of AMEP will use this information along with other relevant facts and arrive at a value of each investee and the complete BDC.
For more information, please log on to our website: www.americanenergyproduction.com.
Statements contained in this release, which are not historical facts, may be considered "forward-looking statements" and are based on current expectations and the current economic environment. We caution the reader that such forward-looking statements are not guarantees of future performance. Unknown risk, uncertainties, as well as other uncontrollable or unknown factors could cause actual results to materially differ from the result, performance, or expectations expressed or implied by such forward-looking statements.
American Energy Production Inc.
Charles Bitters
210-410-8158
www.americanenergyproduction.com
Or
Oil America Group Inc.
Joe Christopher
972-386-0601
[email protected]
Good call TD! Applaud!
Technicaly it's in good shape too , broke out of symmetrical triangle yesterday with above avg volume, followed by news today . small gap this morning and tight trading with sustained volume, which is good sign for continuation IMHO. added at open today for trading purpose.
glta ;D
QuoteHi Pharubx, You asked:
"about oil and gaz compagny,
does AMEP.ob need to own the field were they work?"
I just like to know more about the all subject.
Can you devellop about the all bizness of oil and gaz exctraction, the subject is so hot on those days!
Thanks."
Almost without exception, Oil and NG (Natural Gas) companies lease the land they drill and develop. The leasee gets a nice royalties on the sales, plus an upfront per acre payment. Usually the leasees royalties are between 15% to 35%
Thanks for your input greeneyedhav, I only saw your answer today!
I am certain that I am not the only one that has noticed the volume and price movement the last few days....and now we have just broke .10.......buying before the news maybe?? :o
AMEP closed UP 54 percent. This news release below regarding the companies assets is why. For some time the SP should trend up, in order to catch up with the new NAV ( Net Asset Value) just now entering on the books for AMEP in the newly released 10-K and next day press release, a huge NAV increase, the NAV is how a Business Development Company (BDC) like AMEP is valued:
-------------------- snip -------------------------------------------------------
Press Release Source: American Energy Production Inc.
American Energy Production Inc. Reports Fourth Quarter and 2005 Full Year Financial Results
Wednesday April 19, 2:22 pm ET
Stockholder Equity Increased 954% in 2005
MINERAL WELLS, TX--(MARKET WIRE)--Apr 19, 2006 -- American Energy Production Inc. (OTC BB:AMEP.OB - News) announced today the filing of it annual 10-K financial report ending December 31, 2005.
2005 Financial and Operational Highlights:
-- Net Income increased from (-$5,049,995) in 2004 to a positive
$13,920,315 in 2005
-- Operating expenses decreased $939,415 in 2005
-- Interest expense decreased to $595,125 in 2005 from $3,820,828 in 2004
-- Cash flow increased to $471,339 in 2005 from $268,665 in 2004
-- Net asset value at beginning of period $.01; Net asset value at end of
period $.05.
-- Total stockholders equity increased to $18,577,714 in 2005 from
$1,946,766 in 2004
Charles Bitters, President of American Energy Production Inc., said, "The Company is very pleased with the progress of AMEP and its wholly owned investees Bend Arch Petroleum Inc., Production Resources Inc. and Oil America Group Corp. The annual financial report shows the building of an oil company one lease and one oil or natural gas well at a time, while cutting debt and liabilities as the Company grows. AMEP assets have increased to $18,577,714 with the acquisition of oil and gas leases, drilling rigs, oil and gas production equipment and rolling stock the investees have accumulated in 2004 and 2005. The investees have positioned themselves to take full advantage of the historically high oil and natural gas prices."
2006 OUTLOOK
American Energy Production Inc. and its investees will be able to participate in many more oil and natural gas projects because of the ownership of its own drilling rigs. This rig availability allows Bend Arch Petroleum Inc. to select and drill Barnett Shale prospects that have the most potential for success. With 7000+ acres of Barnett Shale leases in the Ft. Worth Basin, which are held by producing oil or gas wells, Bend Arch Petroleum will continue to drill and develop its own leases as well as joint venture with other local operators.
Production Resources Inc. located in Medina County, Texas is continuing with the testing of AMEP HOA-800 on the heavy oil produced from the Olmas formation. With world oil prices at new record levels the Company will be able to extend the testing to promising areas located on the 1700 acres currently owned by PRI.
Oil America Group Corp., located in Dallas, Texas is becoming a very integral investee of American Energy Production Inc. Joe Christopher, President of Oil America Group Corp., is currently structuring oil and natural gas partnerships to raise money to drill Barnett Shale acreage owned by Bend Arch Petroleum Inc. Many investors recognize high oil and natural gas prices at the pump may be offset by investing in their own oil or natural gas wells.
ABOUT AMEP
American Energy Production, Inc. ("American Energy," "the Company," "we," "us") is a publicly traded business development company that is engaged primarily in the investment in other companies that acquire, develop, produce, explore and sell oil and gas. The Company anticipates that the companies it has invested in will be able to sell all oil that it can produce to petroleum refiners and marketers under the terms of short-term purchase contracts and at prices in accordance with arrangements that are customary in the oil industry. Our capital is generally used by our portfolio companies to finance growth and working capital.
--------------------------------------------snip-------------
FYI and DD,
... %^ greeneyedhawk
I believe the oil prices didn't see the top this year yet.
AMEP is down with other oil companies but they have pretty good news and hopefully will recover (because I bought it :)
Here's the trend line as I see it:
amep is starting to move i think
AMEP announces drilling success, see the announcement below. This just announced well is just the first in a series of wells already drilled and fraced on the Hart Ranch lease IMHO. As the frac water is removed, the gas pressure takes over the push at some point and flushes out the remaining frac water with the Gas and Condensate Oil running through the separator. This is the last step in the completion process of these wells before the PRs are released.
Based on the drilling program that moved to the Padgett Ranch lease with the Ideco Phantom rig, logically Hart wells should closely be followed by wells on the Padgett leases already drilled and ready for the completion process; starting with the Padgett #11 drilled by the Ideco Phantom rig, and the re-entry well on the big 5 1/2" casing.
IMO, the DD says they will all be good producers on both leases based on the offset wells, and the known success of the specifically well known hydrocarbon formations and payzones on the leases.
The delays on the first drilled Hart #8 has caused many news items to stack up IMO, because of the diverted effort to the bigger producing wells. No doubt that has hurt the SP recently up to this point, but those that buy long will now be rewarded if all of these wells already drilled will prove to be as productive as the DD and off-set wells says they will likely be.
AMEP's big advantage is the multiple payzones on every acre of these AMEP Barnett leases. Every drilled hole has a high percentage for the chance of success, with a 100% blanket coverage of the 200' thick Barnett Shale and the slightly thicker 300' Marble Falls lime also with a 100% blanket coverage; followed by various coverages by the sand, lime, and conglomerate type formations above the deeper Marble Falls and Barnett Shale. Note in the announcement just released after the close, that AMEP encountered 5 hydrocarbon bearing pay zones in this one well.
I'm looking forward to the next few months, with AMEP likely producing a flow of 'Good News' PRs on these series of Condensate Oil and Gas wells already drilled, from both the Hart Ranch and the Padgett Ranch leases.
Good luck all,
...greeneyedhawk
AMEP. MINERAL WELLS, Texas--(BUSINESS WIRE)--Sept. 12, 2006--American Energy Production Inc. ("AMEP") (OTCBB: AMEP - News) announced today that its wholly-owned portfolio company, Bend Arch Petroleum Inc. ("Bend Arch"), completed the Nash-Murphy Unit #1 well -- an oil and natural gas, Barnett Shale well located on Bend Arch's Palo Pinto County, Texas twelve-well development project.
The Nash-Murphy Unit #1 natural gas well reached a total depth of 4,999 feet on June 10, 2006. The well was examined utilizing electric logging tools and, based on that examination, management determined that the well has five possible oil and natural gas producing formations. Production casing was run to total depth and cemented in place ready for completion.
Completion began on June 18, 2006 when the well was perforated in the Barnett Shale formation. The well was preliminarily treated with acid fluid and the well flowed back most of the treatment. On August 15, 2006, the Nash-Murphy was fracture-stimulated using a 4,500 barrel slick water frac including 75,000 pounds of sand. In the past several weeks, over 4000 barrels of frac fluid have been recovered from the well. This week the oil storage tanks and pumping unit have been placed on the well location and full production is estimated to begin early next week.
The Nash-Murphy well is located 1,400 feet from the Bend Arch Petroleum Murphy #1 Barnett Shale well that has produced over $1,250,000 of gross proceeds from the sale of oil and natural gas since August of 2004. This location was chosen using a seismic shoot done by Bend Arch in the fall of 2005. The seismic maps picked an Ellenberger high that had potential oil production. After electric logging, it was determined the Ellenberger formation was 100 feet high but the formation did not develop with either porosity or permeability, or have any presence of hydrocarbons.
Charles Bitters, President of AMEP stated, "We are very pleased Bend Arch Petroleum Inc. is maintaining its aggressive program of drilling Barnett Shale wells. The Nash-Murphy well has multiple pay zones that have the potential to produce oil and natural gas for many years, but as always the company will begin at the bottom of the well in the Barnett Shale and work to the top. With the current prices of oil and natural gas, this new discovery, 400 acres the company owns in that area, also adding other new potential productive formation beyond the Barnett Shale."
FYI and DD,
... %^ greeneyedhawk
AMEP 10Q: operating loss of only $38,000 per month; and a Net Loss of only $39,000 per month.
For the entire quarter ending.............. 30 Sept 2006:
Operating loss .............................. $114,000
Net income loss ............................ $118,000
That is without any of the recently drilled and fraced wells, and re-fracs being brought on line.
What will these recent five wells add per month :
1) Nash-Murphy #1 (Barnett Shale formation)............?
2) Hart #2 re-frac (Marble Falls formation)................?
3) Hart #8 (Strawn Sands formation)........................?
4) Padgett #11 (Barnett Shale formation) ...................?
5) Padgett #2 (Recompletion [drilling to a deeper formation, ie Barnett] permit approved 6/15/06....?
No matter how conservative I am about estimating future production for these wells not reporting yet, I come up with AMEP being highly cash flow positive and profitable, ...by a mile.
$39,000 loss per month should be easy to overcome, especially since AMEP has no debt.
Bank loans ...Zero.
Do your own DD, and come to your own conclusions. My estimations are working off the FACTS above.
That said, there is no doubt in my mind that AMEP will be a profitable Oil and Gas driller and producer in the very near future.
Good luck and good DD all longs.
... %^ greeneyedhawk
AMEP.ob is breaking out from a 2 months triangle formation.
Now at 0.0715
But where is the volume???
Anyway, let makes some money!
Phabrux
In the last 3 months AMEP.ob triple in value from 0.0258 to 0.082 on Friday. without significant news.
With the crude who is slowly rising too, maybee AMEP.ob might reach for the third time the 14 cent mark again?
But where is the volume?
Happy trading.
Here is AMEP.ob chart update for february 2007.
David, what do you think about AMEP.ob?
David Reply on: 2007-01-23, 10:45:48 »
--------------------------------------------------------------------------------
AMEP.OB 3 minute look:
http://www.3stocksonfire.org/trading/index.php?topic=8782.msg85345#msg85345
AMEP.OB's land is valued at $20.9 M on the balance sheet, the current market cap is about $30 M and the company has no operations now.
Unless there's news I don't see it being on fire. Volume is very low lately, impossible to buy any position, even for the tiny 3 Stocks on Fire Portfolio, because liquidity in dollar terms is extremely low.
An Open Letter to the Shareholder's of American Energy Production, Inc.
--------------------------------------------------------------------------------
July 5, 2007
An Open Letter to the Shareholder's of American Energy Production, Inc.
Dear Shareholders:
Since December of 2002, American Energy Production, Inc. ("AMEP") and or the "Company" has issued approximately 452,000,000 shares of common stock and raised approximately $7,400,000 in capital. The capital has been utilized to fund operations, acquire equipment and obtain oil and gas leases. As a result, the market capitalization of AMEP as of July 3, 2007 is approximately $18,000,000.
As disclosed in recent public filings, AMEP has successfully transferred from being a Business Development Company with portfolio companies to an oil and gas operating company with consolidated wholly-owned subsidiaries. However, AMEP has no ability to obtain additional capital to carry out its business plan and requires a restructuring of its common stock. Accordingly and after careful consideration, the Board of Directors has recommended a one-for-twenty five Reverse Stock Split of the common stock of the Company. The Company has provided a detailed question and answer format in the attached Proxy Statement but in summary, believes that this action potentially will:
Increase shareholder value in the long-term.
Increase the appeal of our common stock to a greater number of investors and funds.
Provide the Company liquidity for future growth and acquisitions.
Provide shareholders with improved trading liquidity.
Increase the ability of AMEP to attract and retain Key Executives and Employees.
Assist the Company with a move to a national exchange listing such as the NASDQ Small Cap or American Stock Exchange.
Based on initial shareholder response received by the Company, there are three primary issues among shareholders that appear to be significant.
Why a reverse split of 1 for 25?
The Board of Directors selected the ratio taking into account a number of factors including:
The trading price and market of our common stock.
The trading price of peer companies.
Facilitate in achieving the items discussed above under (A) through (F).
Why keep authorized shares of common stock at 500,000,000 after the reverse stock split?
The Board of Directors believes that retaining the authorized shares of common stock at 500,000,000 will provide the Company with the ability to timely raise capital, timely complete future acquisitions and mergers and attract and retain key executives and employees. The requirement for the Company to request shareholder approval for issuances of common stock is not practical, could impede opportunities due to timing and would be costly to the Company in relation to both currency and employee time inefficiency.
Why are the 3,500,000 shares of Preferred Stock owned by Charles Bitters not subject to the reserve stock split?
First, the Preferred Stock agreement with Mr. Bitters specifies that in the event of a restructuring of the AMEP shareholders equity, the Preferred Stock is not subject to any adjustment. In 2002, Mr. Bitters loaned the Company $464,005 of funds and the Company had no ability to repay these funds. Additionally, as of January 4, 2004, accrued interest of $64,527 was owed to Mr. Bitters by the Company and the Company had no ability to repay the interest. As a result, on January 5, 2004, the Board of Directors approved the issuance of 3,500,000 designated Series A preferred stock to Mr. Bitters in exchange for the conversion of $464,005 of indebtedness owed to him. In connection with the conversion of the note principal, Mr. Bitters forgave the related accrued interest totaling $64,527 in a separate transaction on the same date.
The Preferred Stock has right to convert into common stock at a ration of three (3) shares of Common Stock to one (1) share of Preferred Stock. Assuming that Mr. Bitters would elect to convert, the total shares of common stock issued would be 10,500,000. Based upon a purchase price of $464,005 (excluding $64,527 of interest forgiven), the 10,500,000 shares would represent a purchase price of common stock $0.044 per share. As a comparison, when the Preferred Stock was granted to Mr. Bitters, AMEP was selling common stock to investors at $0.01 per share.
The Company encourages each of its shareholders to read the attached Proxy Statement including the Question and Answer section as you evaluate the proposal and the Board of Directors recommends a yes vote for the proposal.
Thank You
American Energy Production, Inc.
About: American Energy Production, Inc.
American Energy Production Inc. is a Business Development Company. A BDC company is regulated under the 1940 SEC act. That act set out procedures by which a Company once it establishes a majority position in a Company can make a series of further investments in its 'investee.' A BDC company does not consolidate financial statements with its investees and each investee operates independently.
The value of a BDC is derived by adding the value of each of the investees. In the case of AMEP each investee's oil and gas leases and producing properties and equipment will be evaluated by a petroleum engineer and then the independent members of the Board of Directors of AMEP will use this information along with other relevant facts and arrive at a value of each investee and the complete BDC.
Statements contained in this release, which are not historical facts, may be considered "forward-looking statements" and are based on current expectations and the current economic environment. We caution the reader that such forward-looking statements are not guarantees of future performance. Unknown risk, uncertainties, as well as other uncontrollable or unknown factors could cause actual results to materially differ from the result, performance, or expectations expressed or implied by such forward-looking statements.
Contact:
American Energy Production Inc.
Charles Bitters, 210-410-8158
www.americanenergyproduction.com
or
Oil America Group Inc.
Joe Christopher, 972-386-0601
[email protected]www.oilamericagroup.com
Source: Oil America Group Corporation
Changed Ticker Symbol
'AMEP.OB' is no longer valid. It has changed to AENP.OB