AENP.OB

[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:

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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:

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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.
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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

[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

[MarketMakerz]

Nice job Hawk!!!

Makes my 0.031 entry look even better just reading your DD!

[digitx]

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

[MarketMakerz]

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!

[greeneyedhawk]

 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

[MarketMakerz]

Bought more at 0.026 and happy with it!

[atalltexan]

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.

[puenthouse]

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.

[greeneyedhawk]

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

[MarketMakerz]

Bought more at $0.0231 and EXTREMELY happy with it!

I am going to buy as much as i can on the dips!


I WILL BE RICH VERY SOON!

[MarketMakerz]

To whoever it is that is giving me negative rating: I COULD NOT CARE LESS!!

ME AND AMEP BOTH RICH SOON! YOU CAN SHOVE YOUR RATING UP YOUR ARSE

[MarketMakerz]

Thanks for all the love!!!I LOVE YOU TOO!


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.

[RJ]

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

[Velasis]

 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?