3SOF

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 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 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

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

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

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

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

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

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

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

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

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

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 ;^)

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

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