posted
I can't stress enough,I post picks way in advance and this one will be heading north fast,our economy dictates it.Get in early and lettem sit,anywhere in the .02's is a steal.
NEW: Share Holder Update
American Energy Production, Inc. (OTCBB, AMEP) is an Oil and Gas Lease Acquisition Company. The Company will specialize in acquiring oil and gas leases that have potential for increased oil and natural gas production utilizing new technologies, well workovers and fracture stimulation systems.
American Energy Production, Inc., will acquire oil and gas leases that have proven reserves. The Company will initiate developmental drilling programs to drill new wells on these leases and if successful will add oil and gas reserves to the acquired property.
American Energy Production, Inc., is involved in three areas of oil and gas operations.
1. Leasing Programs. 2. Production Acquisitions 3. Drilling with new technologies
American Energy Production, Inc's., main objective is to find oil and gas leases with upside potential for enhanced production. The company does this by utilizating the following rules: 1) leases, 2) geology, 3) engineering, and 4) mapping from 3-D seismic.
American Energy Production, Inc., believes for the next generation the entire world will still run on oil and natural gas. So far, alternative fuels are still too expensive to substitute for fossil fuels. Because of the unstable conditions in the Middle East and the Arab nations, the oil and gas markets will remain stable for the next few years. The United States is so dependent on foreign oil, the Company believes any new oil and gas reserves found in America will help the country be independent and not held hostage by the Arab oil producing nations.
American Energy Production, Inc., offers the opportunity for stock investors to be part of a company that has a vision to be a partner with the United States of America to become energy self-sufficient.
American Energy Production Inc. November 30, 2004
American Energy Production Inc. on January 18, 2004 filed a form N-54 with the SEC to become 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 it’s ‘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.
Several other points of interest include:
1. The accounts payables listed in the 10Q filings are all aged accounts that were part of the Communicate Now.com--the predecessor company to AMEP. Management will continue to work-off these accounts payable in an orderly manner. However, AMEP does not believe it is in the best interest of the company to use funds that would otherwise be used to develop more oil and gas properties, and generate revenue, to pay these ‘inherited’ accounts payable to aggressively.
2. The payroll taxes listed on the 10-K filings are also part of the former.com Company and will be addressed as an Offer and Compromise at the direction of company lawyers.
3. The bank notes listed in the 10Q filings are also part of the former .com Company and will be addressed at the proper time.
4. The convertible debenture originally issued by AMEP to Proco Operating Co. Inc. for $2,000,000 for the purchase of 3,000,000 acres of Marble Falls, Caddo and now Barnett Shale producing oil and gas wells has been transferred to Bend Arch Petroleum Inc. This convertible debenture is not convertible until 2007. It should be noted that Johnnie Lee Bitters brother of Charles Bitters, President of AMEP, owns Proco Operating Co. Inc. Proco Operating contract operates all of the producing oil and gas wells of Bend Arch Petroleum Inc.
5. Charles Bitters, President of AMEP, has recently purchased shares in the company—see recent filings.
6. Management views AMEP as a growth company with the development of select oil and gas properties as both its short and long-term goals. The Company is very pleased with its first year growth and anticipates (assuming continued strong oil and gas prices) another year (2005) of significant increases in revenues. So that over the next 12-18 months profitability can be achieved.
7. There are currently approximately 300 million common shares outstanding; the majority of these shares have been issued over the last year in order to acquire oil and gas acreage, producing wells and investees. To the extent practicable the Company will limit the number of additional shares issued in the future. In part this will be accomplished by establishing joint interests in future property and wells that are acquired by AMEP investees.
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