American Oil & Gas (AEZ) is very high on my list of possible replacements for Arena Resources (ARD) in the Sweet-16. I hope to work on it next week but we are very busy these days with the new website and updating all my models. I urge you all to start your own due diligence on this one.
http://www.americanoilandgasinc.com
Dan
PS: ARD will be delisted once the merger with Sandridge (SD) is complete. I love ARD and think it is currently undervalued by the market. I wish it would stay independent but they did not ask me.
Watch List Alert
Watch List Alert
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
aez looks good to me
two pieces of data i like--no debt! and rev's est's on first call of 13.5m in '10 and 56m in '11.
eps fwiw ar 6c and 26c. followed by 7 analysts.
resources focused on bakken.
eps fwiw ar 6c and 26c. followed by 7 analysts.
resources focused on bakken.
Re: Watch List Alert
RE: American Oil & Gas
I have completed my Net Income and Cash Flow Forecast model for AEZ. It is very impressive. I have a call into the Company and I will discuss it with them.
If they confirm what I have in the model then AEZ will be replacing ARD in the Sweet-16 Growth Portfolio. I will be posting my forecast under the Sweet-16 Tab as soon as confirm it.
Right now I don't think we need to rush in and buy AEZ as their 2nd quarter results won't be that impressive. In fact, my model shows they will book a small loss for Q2 (in line with the First Call EPS estimate). However, starting in Q3 this one could be off to the races. As you can see from the press release below their production (which is now under 500 boepd) will be ramping up very quickly. Continued success in the Bakken could have AEZ's net production in the 3,000 to 4,000 boepd range by year-end. NOTE THAT THEY HAVE TWO RIGS WORKING IN THE BAKKEN SO THEY COULD BE PUTTING OUT A LOT OF IMPRESSIVE OPERATIONS UPDATES AS THESE WELLS ARE ALL MATERIAL TO A COMPANY OF THIS SIZE.
What I really like is that they have an incredibly strong Balance Sheet, loaded up with cash from the sale of their Powder River Basin assets in Q1.
AEZ appears to be exactly what I look for in a small-cap. Getting in on these right before they ramp up production and proven reserves can be a "very rewarding experience".
I'm trying to get them to come to Houston in July to host a luncheon for us so we can all meet the management team.
Dan
DENVER, CO--(Marketwire - 05/11/10) - American Oil & Gas Inc. (AMEX:AEZ - News) announces that the Ron Viall 1-25H well, located in T156N-R98W Sections 24 and 25 in Williams County, ND produced 2,844 barrels of oil equivalent (1,981 barrels of oil and 5,179 Mcf of natural gas) from the Bakken formation during an early 24 hour flow back period. The 9,223 foot lateral in the Bakken formation was fracture stimulated with 30 stages. American owns a 95% working interest in this well.
Pat O'Brien, CEO of American, commented, "The strong production from the Ron Viall well provides us with a high confidence level that our drilling and completion methods are appropriate for this area. We now have two drilling rigs operating in our Goliath project. Drilling is underway at the Bergstrom 15-23H well and we expect to commence drilling the Johnson 15-35H well this week. With these two drilling rigs committed through 2010, we now expect to drill ten to twelve gross (seven to nine net) wells in 2010 with at least one of the wells targeting the Three Forks formation. This expanded drilling program is expected to be funded with existing cash and projected cash flow from operations."
American also reports that the Tong Trust 1-20H well, located in T157N-R96W, Sections 20 and 17, that initially produced 1,421 barrels of oil equivalent per day ("BOE/D") from the Bakken formation, averaged 962 BOE/D during its first seven production days and 652 BOE/D during its first 30 production days.
At the outside operated Heidi 1-4H well, where American owns an approximate 6% working interest, the short lateral Bakken well was successfully completed in April and was recently placed on production. The operator has not released production data. The Heidi well is located on the western edge of the Goliath project area in T156N-R99W, Section 4.
Outside of the core Goliath project area, American's operated Summerfield 15-15H well in T147N-R96W, Section 15, Dunn County, ND has been successfully drilled. A 4,051 foot horizontal lateral was drilled in the targeted Bakken formation. The casing and the associated completion assembly have been run to facilitate up to 14 fracture stimulation stages. Completion operations are expected to commence in mid May. American owns an approximate 33% working interest in this well.
Ensign rig #24 that was used to drill the Summerfield well is currently drilling the Bergstrom 15-23H well located in T156N-R98W Sections 23 and 14, Williams County. The vertical portion of the Bergstrom wellbore has been drilled and drilling of the planned 9,800' lateral into the Bakken formation is underway. American owns an approximate 95% working interest in this well. Ensign rig #24 was originally contracted for two additional wells, but is now under contract through 2010.
Nabors rig #486, which is under contract through 2010, has recently moved back to the Goliath area and during the week of May 10th, is expected to commence drilling the Johnson 15-35H well, located in T156N-R98W Sections 35 and 26, Williams County. The Johnson well is spaced on 1,280 acres and an approximate 9,800' lateral into the Bakken formation is planned. American owns an approximate 82% working interest in this well.
American Oil & Gas Inc. is an independent oil and natural gas company engaged in exploration, development and production of hydrocarbon reserves primarily in the Rocky Mountain region. Additional information about American Oil & Gas Inc. is available via the Company's website at http://www.americanog.com/.
I have completed my Net Income and Cash Flow Forecast model for AEZ. It is very impressive. I have a call into the Company and I will discuss it with them.
If they confirm what I have in the model then AEZ will be replacing ARD in the Sweet-16 Growth Portfolio. I will be posting my forecast under the Sweet-16 Tab as soon as confirm it.
Right now I don't think we need to rush in and buy AEZ as their 2nd quarter results won't be that impressive. In fact, my model shows they will book a small loss for Q2 (in line with the First Call EPS estimate). However, starting in Q3 this one could be off to the races. As you can see from the press release below their production (which is now under 500 boepd) will be ramping up very quickly. Continued success in the Bakken could have AEZ's net production in the 3,000 to 4,000 boepd range by year-end. NOTE THAT THEY HAVE TWO RIGS WORKING IN THE BAKKEN SO THEY COULD BE PUTTING OUT A LOT OF IMPRESSIVE OPERATIONS UPDATES AS THESE WELLS ARE ALL MATERIAL TO A COMPANY OF THIS SIZE.
What I really like is that they have an incredibly strong Balance Sheet, loaded up with cash from the sale of their Powder River Basin assets in Q1.
AEZ appears to be exactly what I look for in a small-cap. Getting in on these right before they ramp up production and proven reserves can be a "very rewarding experience".
I'm trying to get them to come to Houston in July to host a luncheon for us so we can all meet the management team.
Dan
DENVER, CO--(Marketwire - 05/11/10) - American Oil & Gas Inc. (AMEX:AEZ - News) announces that the Ron Viall 1-25H well, located in T156N-R98W Sections 24 and 25 in Williams County, ND produced 2,844 barrels of oil equivalent (1,981 barrels of oil and 5,179 Mcf of natural gas) from the Bakken formation during an early 24 hour flow back period. The 9,223 foot lateral in the Bakken formation was fracture stimulated with 30 stages. American owns a 95% working interest in this well.
Pat O'Brien, CEO of American, commented, "The strong production from the Ron Viall well provides us with a high confidence level that our drilling and completion methods are appropriate for this area. We now have two drilling rigs operating in our Goliath project. Drilling is underway at the Bergstrom 15-23H well and we expect to commence drilling the Johnson 15-35H well this week. With these two drilling rigs committed through 2010, we now expect to drill ten to twelve gross (seven to nine net) wells in 2010 with at least one of the wells targeting the Three Forks formation. This expanded drilling program is expected to be funded with existing cash and projected cash flow from operations."
American also reports that the Tong Trust 1-20H well, located in T157N-R96W, Sections 20 and 17, that initially produced 1,421 barrels of oil equivalent per day ("BOE/D") from the Bakken formation, averaged 962 BOE/D during its first seven production days and 652 BOE/D during its first 30 production days.
At the outside operated Heidi 1-4H well, where American owns an approximate 6% working interest, the short lateral Bakken well was successfully completed in April and was recently placed on production. The operator has not released production data. The Heidi well is located on the western edge of the Goliath project area in T156N-R99W, Section 4.
Outside of the core Goliath project area, American's operated Summerfield 15-15H well in T147N-R96W, Section 15, Dunn County, ND has been successfully drilled. A 4,051 foot horizontal lateral was drilled in the targeted Bakken formation. The casing and the associated completion assembly have been run to facilitate up to 14 fracture stimulation stages. Completion operations are expected to commence in mid May. American owns an approximate 33% working interest in this well.
Ensign rig #24 that was used to drill the Summerfield well is currently drilling the Bergstrom 15-23H well located in T156N-R98W Sections 23 and 14, Williams County. The vertical portion of the Bergstrom wellbore has been drilled and drilling of the planned 9,800' lateral into the Bakken formation is underway. American owns an approximate 95% working interest in this well. Ensign rig #24 was originally contracted for two additional wells, but is now under contract through 2010.
Nabors rig #486, which is under contract through 2010, has recently moved back to the Goliath area and during the week of May 10th, is expected to commence drilling the Johnson 15-35H well, located in T156N-R98W Sections 35 and 26, Williams County. The Johnson well is spaced on 1,280 acres and an approximate 9,800' lateral into the Bakken formation is planned. American owns an approximate 82% working interest in this well.
American Oil & Gas Inc. is an independent oil and natural gas company engaged in exploration, development and production of hydrocarbon reserves primarily in the Rocky Mountain region. Additional information about American Oil & Gas Inc. is available via the Company's website at http://www.americanog.com/.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
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geneb
Re: Watch List Alert
Have added to my SS as of end of yr. Stats so far don't look very good so it's the future we're talking about. Earning did have a big jump at qt1 but this due to land sale as I recall. Wow, just saw news on new well, 2799 boe flow rate 1st 24 hours, a biggie, they have 1/3 interest. This can double current production after initial draw down. Prod at qt 1, 169 boed.
Re: Watch List Alert
Geneb;
Note that AEZ ownes 95% working interest in the Ron Viall 1-25H well. That is HUGE for a company of this size.
I recommend that all EPG members interested in AEZ take the time to review their most recent presentation which is available on their website.
Dan
Note that AEZ ownes 95% working interest in the Ron Viall 1-25H well. That is HUGE for a company of this size.
I recommend that all EPG members interested in AEZ take the time to review their most recent presentation which is available on their website.
Dan
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group