3SOF

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 » 

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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