Are Shares of This Issue Poised For a Run?
Stockmarket Small-cap Profile <[email protected]> Sat, 09 Oct 2004 22:54:53 -0100 (CST)
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The Wall Street Investor An Oil Discovery That Will Put The Middle East Out Of Business. One of the most exciting oil & gas investment plays that we have seen over the past year, A promising stock investment opportunities Am-Tex Oil & Gas. ========================================== Am-Tex Oil & Gas, Inc. OTC: AMTX Current Price: 0.30 STR0NG BUY with a short term price of 1.50 (20 Days) REASON Production and major news pending Short Term Outlook: Explosive Growth Est. Shares Out: 77 Million Market Capitalization: 20.79 Million Industry P/E: 16x Industry Average 52 Week Price Change: +65% ========================================== With oil prices over 50 per barrel, and foreign imports looking increasingly unreliable, this is a boom period for US oil exploration companies. Savvy-investors that have been buying AMTX will reap the rewards very shortly due to EPS and Major discovery news in our opinion. Morgan Stanley recently forecast that the price of oil could reach as high as 80 per barrel by the end of the year!! With more than 57% of US oil coming from foreign imports, and increasing international instability, the industry is undergoing a renewed trend towards domestic exploration and production. US demand for natural gas is dramatically increasing with overall consumption expected to grow by more than 60% to 37 trillion cubic feet by 2020, and natural gas prices on the spot market nearly doubling from less than two years ago. With this in mind, we ask you to consider one of the most exciting oil & gas investment plays that we have seen over the past year, Am-Tex Oil & Gas. While there are any number of promising investment opportunities in the oil & gas small cap segment, we almost never see stock opportunities with the same pedigree and certainty of AMTX. Am-Tex has recently entered into an agreement with oil industry giant, Exxon-Mobil and Holifield Oil Company, for joint production of a 928 acre property in the heavily producing Giddings Field in Lee County, Texas. With Holifield Oil Company, AMTX has been able to secure a 25% working interest in this project, while Exxon-Mobil holds the remaining 75% interest. AMTX recently announced that it has commenced drilling operations on Edgmon-Cameron, and expects to begin production of commercially viable oil over the next 3-4 months, with initial yield expectations of more than 600 barrels per day. Over the next several years, AMTX plans to bring additional wells online, and projects annual income of more than 80 million when the site has been fully developed by 2008!!! Through this tremendous alliance with visionary oil wildcatter Ray Holifield and Exxon-Mobil, we believe that Am-Tex Oil & Gas represents the single most exciting investment opportunity we have seen in the past two years. At trading levels of only $0.25 per share, this is a true undiscovered gem. When commercial production begins over the next several months, this stock will explode. We urge you to consider investing in Am-Tex Oil & Gas now, and see your investment explode by 300-500% over the next 3-4 months!!! =========================================== 1. The outlook for US oil and gas stocks has rarely been more optimistic in recent years, with skyrocketing consumption, decreasing domestic production, and foreign supply uncertainties contributing to historical price levels for oil and natural gas. In 2004, the US will consumer 7.5 billion barrels of oil, while domestic oil production is declining by 2% annually and is at its lowest levels since the 1950s, with more than 57% of domestic consumption coming from imports. With crude oil now trading at more than $50 per barrel, Morgan Stanley has recently predicted that oil could reach $80 by the end of the year!!! At the same time, US demand for natural gas is increasing at an exponential rate, with consumption expected to increase at a rate of 60-65% to more than 37 trillion cubic feet (currently 23 Tcf) by 2020. With domestic production of roughly 18-19 Tcf per year, this has created a tremendous supply shortage, and is likely to drive natural gas prices well above current levels of $5-6 per BTU. Many analysts predict that natural gas prices on the spot market could reach as high as $9 by winter!!! 2. In partnership with oil industry giant Exxon-Mobil and Holifield Oil Company, AMTX has acquired a 25% working interest in a 928 acre property, located at the Giddings Field, in the Austin Chalk Trend of Lee County, Texas. The Giddings Field was first discovered in the 1930s and has been responsible for cumulative production of more than 380 million barrels of oil and 2.1 trillion cubic feet of natural gas. Most of this production was undertaken with antiquated vertical drilling techniques, leaving a huge amount of oil and gas reserves un-recovered in the ground- engineering estimates suggest that there is over 1 billion in oil and gas reserves waiting to be recovered in the Giddings Field!!! Using advanced seismic analysis, horizontal drilling, and proprietary recovery technologies, AMTX is aggressively re-entering the Giddings Field, and expects to begin substantial production from the property over the next several months. 3. Ray Holifield, responsible for AMTX exploration and drilling operations, is a legend in the oil & gas industry, who has drilled over 2,000 wells in this same formation over the past quarter century. His wells in the Giddings Field have produced more than 3 to 4 times the oil of other wells in the same area, and the total oil revenues from his wells exceeds $5 billion with an ROI of 5:1, simply unheard of compared to industry standards of 2. What is more, Ray Holifield has undertaken an extensive geological analysis and survey of the area, at a cost of more than 10 million, which he can use to accurately pinpoint and exploit reserves. When he used these techniques and surveys in Lee County, Texas, the results were astonishing. Of 647 vertical wells drilled, initial production average more than a thousand barrels of oil per day, and total production averaged 147,900 BOE, results more than 4.5 times greater than other operators in the same area! Simply put, in the Giddings Field, there is no better man to oversee production, who has more experience and a proven track record of success, that Ray Holifield. 4. AMTX is ready to begin production now in the Giddings Field property, and expects to generate initial production of 600 barrels per day, with oil and gas income of 80 million projected for 2008!!! AMTX has selected 20 sites for new wells or re-entries, and expects to be producing 600 barrels a day within the next few months- generating income for the Company of approximately 110,000 in the first quarter of 2005. AMTX will bring one well online every quarter in the early stages, and then plans to use cash-flow to start-up two wells per quarter. By the first quarter of 2008, AMTX projects that it will be earning income of over $20 million, an annualized rate of more than 80 million!!! Based on earnings projections of $80 million for 2008, and applying the industry P/E of 16x, this suggests a valuation for AMTX of 14.00 per share- an increase of more than 5100% to current trading levels!!! 5. At its current trading range of around $0.25 per share, AMTX represents a tremendous opportunity to see huge profits. With production slated to begin over the next several months, we think that the stock will see major share price increases once the wells begin production- with early investors seeing gains of 300-500% over the next 3-4 months!! Historically, oil and gas exploration companies see their stock price increase upwards of 100-200% with major milestones, such as indicated resources, increased production, and the successful completion or start-up of wells. FCGCF exploded from the low $1 range to nearly $8 when it hit its first commercially viable oil in September of 2002, a gain of more than 700%, while OILXF skyrocketed 428% from $1.00 to $2.64 from July 2003 to January 2004, when they struck oil in the North Sea. With commercial production from the Giddings Field, helmed by industry pioneer Ray Holifield, we think that AMTX will dwarf the price gains of these players, and make early investors rich in the process!! ========================================== Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through the use of words such as: "projects", "foresee", "expects", "estimates," "believes," "understands" "will", "anticipates," or that by statements indicating certain actions "may," "could," or "might" occur. All information provided within this email pertaining to investing, stocks,securities must be understood as information provided and not investment advice. Emerging Equity Alert advises all readers and subscribers to seek advice from a registered professional securities representative before deciding to trade in stocks featured within this email. None of the material within this report shall be construed as any kind of investment advice. We have been paid 20,000 dollars for this mailing from a third party.