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American Eagle Energy Anonim Ortaklik Message Board

  • flamfurter flamfurter Feb 17, 2012 4:54 PM Flag

    oil at 103

    What is AMZG worth? Any thoughts greatly appreciated.

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    • Current price is a joke compared with the potential.

      AMZG has acreage in Hardy, Saskatchewan, Canada, where they are already producing oil; North Dakota (Divide County), where they have non-operated interests in numerous producing wells; and in the Alberta Basin of Montana.

      What will make the stock move will be news from all of those areas: in Canada, there is a recently drilled horizontal well that will be fracked "by the end of February"; in North Dakota, they had pre-announced the drillling of two operated wells in December 2011; and in Montana, we are waiting for news from the testing of one or two horizontal wells drilled in 2011.

      Of particular interest are the North Dakota wells; these two wells are the first to be drilled in North Dakota with AMZG as operator. I don't know which is their working interest, but should be what, 25%, 30%, at least. These are Bakken/Three Forks wells, and we could expect initial rates of up to 500 BOPD.

      The company is in good shape financially, and the Chairman, Findley, is a well respected geologist, he has lots of experience with Bakken plays.

      Production: I believe production is currently around 300 BOPD. If you add a couple of sucessful wells in North Dakota, plus the current drilling program in Canada, we could easily see that number double in the short-term, and then double again by the end of the year.

      A price target? How much do you value a barrel of flowing oil? $100,000? $150,000? 46 million shares outstanding, zero debt, more or less 18,000 net acres in North Dakota, up to 12,000 net acres in Canada, and some 27,000 net acres in Montana.