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American Company Spotlight

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American Petro-Hunter, Inc. Website:
Click Here |
Information As Of
February 26,
2010 |
| Exchange:
OTCBB |
Market Cap:
22.8
Million |
| Outstanding Shares:
23.7
Million |
52 Low / High:
$0.021 / $1.05 |
|
Price Originally Profiled February
8, 2010:
$0.67
Profile Updated February
26, 2010:
$0.96 |
AAPH Recent Stock Quote and News:
Click Here |
"The
Company recently announced the discovery of a new oil field at
its Rooney Project, Kansas. Initial 3rd party estimates show
this first of 10 wells will produce at 200 BOPD and further
estimate that the oil pool has a potential of 500,000 barrels
of oil."
Overview
American Petro-Hunter Inc. is a goal-oriented
exploration and production (E&P) Company aiming to become an intermediate level
oil and gas producer within 12 months.
The Company believes that
continued industry growth through the development and exploration of
conventional domestic oil and gas reserves will provide the essential near-term
stabilizing backbone and primary driver towards an American made economic
recovery and restoration of the American vital
financial system to prosperity.
With the achievable target of becoming a 1000 BOE (barrel of
oil equivalent) producer as the Company's goal,
American Petro-Hunter is actively on the “hunt” for domestic petroleum through
exploration and acquisition.
Investment Highlights
- Recent Oil Discovery.
The Company recently announced the discovery of a new oil
field at its Rooney Project, Kansas. Initial 3rd party
estimates show this first of 10 wells will produce at 200
BOPD and further estimate that the oil pool has a potential
of 500,000 barrels of oil.
- Aggressive Growth Targets.
American Petro-Hunter aims to become a 1000 BOE
producer in the next 12 months by aggressively developing
its Rooney and Poston Projects as well as continuing to
engage in exploratory drilling opportunities on their Colby
Prospect, West Texas Prospect, and Sacramento Gas Prospect.
- Diversified Asset Portfolio.
The Company has a diversified and balanced a
portfolio of assets with five production properties in
Kansas, Texas and California. American Petro-Hunter’s Poston
Project, Trego County, Kansas and Rooney Oil Project, Ford
Country, Kansas are already in-production. Other prospects
include: Colby Prospect, Thomas County, Kansas; West Texas
Project, Crockett County, Texas; and Sacramento Gas
Prospect, Central Valley, California.
- Strong Revenue Growth.
According to a research report by Cohen Research, they
expect significant revenues as the Company continues to
bring more wells into production. Commercialization of
reserves in Rooney and Poston Oil using superior technology
and potential commercial production of other assets will
result in revenues of $14.5 million for FYE 2010 and $32.8
million in FYE 2011.
- Recent Buy Recommendation.
The Cohen Research report also gave American
Petro-Hunter, Inc. (OTCBB:AAPH) a BUY rating with a 12 month
price target at $3.07, representing a 358%
increase over today's trading price.
- Property In Leading Oil-Producing
State. Texas is the leading crude oil-producing
State in the U.S. with its signature crude oil. Known as
West Texas Intermediate (WTI), it is the benchmark of crude
oil in America. Texas’s 27 petroleum refineries can process
more than 4.7 million barrels of crude oil per day. They
account to more than one-fourth of the total U.S. refining
capacity.
Profile
American Petro-Hunter, Inc. is a rapidly growing, expertly
managed exploration and productions (E&P) company aiming to
become an intermediate level oil and gas producer within the
next 12 months. The Company recently announced the discovery
of a new oil field at its Rooney Project, Kansas. Initial 3rd
party estimates show this first of 10 wells will produce at
200 BOPD and further estimate that the oil pool has a
potential of 500,000 barrels of oil!
American Petro-Hunter aims to become a 1000 BOE producer in
the next 12 months by aggressively developing its Rooney and
Poston Projects as well as continuing to engage in exploratory
drilling opportunities on their Colby Prospect, West Texas
Prospect, and Sacramento Gas Prospect.
Development of other acquired assets and acquisition of
quality exploration projects in targeted jurisdictions will
further increase its annual production capacity. American
Petro-Hunter’s longterm goals are to take the Company through
exploration, development and production in excess of the 2000
BOE level. This would create an attractive target for merger
or acquisition by one of the majors. American Petro-Hunter is
building a strong, balanced and diversified portfolio of oil
and gas assets that will result in significant reserve growth,
production revenue and value for shareholders.
The Company has a diversified and balanced a portfolio of
assets with five production properties in Kansas, Texas and
California. American Petro-Hunter’s Poston Project, Trego
County, Kansas and Rooney Oil Project, Ford Country, Kansas
are already in-production. Other prospects include: Colby
Prospect, Thomas County, Kansas; West Texas Project, Crockett
County, Texas; and Sacramento Gas Prospect, Central Valley,
California. A geographical map and
overview of the Company’s various projects
can be viewed
here.
According to a research report by Cohen
Research, they expect significant revenues as the Company
continues to bring more wells into production.
Commercialization of reserves in Rooney and Poston Oil using
superior technology and potential commercial production of
other assets will result in revenues of $14.5 million for FYE
2010 and $32.8 million in FYE 2011. The Cohen Research report
also gave American Petro-Hunter, Inc. (OTCBB:AAPH) a BUY
rating with a 12 month price target at $3.07, representing a
358% increase over today's trading price.
Cohen Research is not the only research
firm giving AAPH a favourable recommendation, Jarret
Wollstein, Editor of Intelligent Investor Report also
commented recently by saying, "...This incredible stock, ripe
with potential and backed by bedrock fundamentals, could rise
as high as $3.00, perhaps even to $4.00 per share." John Myers
of TopEnergyPicks.com said, "Buy American Petro-Hunter up to
$1.50. My expectation is that even if one of its hot
properties delivers as promised, this company will be selling
above $3.00 per share."
It's always nice to see analysts agree
on one thing, and right now it's on how undervalued AAPH
currently sits. The Company is currently sitting around its 52
week high and from looking at the technical chart for AAPH, it
looks as though the stock could continue to head higher. These
are charts we love to see, ones that are clearly going in one
direction, up.
Looking at the chart from a technical
perspective, it's clear to see that AAPH is firmly in a bull
trend, despite the sell-off that has been occurring in the
broad markets. The stock broke-out in early December when it
was around the $0.30 level and has not looked back since.
Comparing a 10 day versus a 50 day EMA, the stock is still
firmly holding on to the bullish trend that developed after
the EMA crossed at the beginning of December, 2009. Since the
breakout ended around mid-December, the stock has been
creeping upwards and developing a new trading base, which is
nice to see because upward breakouts are quite likely, however
significant price drops do not occur quite as often.
The ADX crossed into a bullish trend at
the beginning of January, and seems to be firmly showing a
continuation of this trend. These and other indicators are all
pointing to a continuation of the trend. The latest
candlestick is showing indecision between bulls and bears, but
with the other technical indicators showing bullish sentiment,
AAPH could be poised for another leg up shortly.
Even though things are looking quite
good for AAPH, we always recommend that all investors setup
stop-losses just in case things go the other way. In this
case, we see significant amount of support around the $0.60
range, so a stop loss at that price is encouraged. AAPH is
looking quite strong right now, and we are not the only one's
saying that.
StockTA.com is bullish on AAPH right now and the site is
fully automated and the results cannot be tampered with by
humans, as the results are picked via proprietary technical
algorithms. That being said, as always, these are only our
interpretations of AAPH's chart, we strive to give you all the
information we can and always encourage our investors to do
their own due diligence and consult with a financial advisor
before making any trading decisions.
American Petro-Hunter, Inc. is swiftly transforming itself
from a developmental stage company to a commercially
in-production and cash flow positive oil and gas company. The
Company continuously evaluates opportunities for expansion
within that industry through acquisition or other strategic
relationships. The Company has and continues to develop a
strong, balanced and diversified portfolio of oil and gas
assets to create significant reserve growth, production
revenue and value for shareholders. Key value drivers
for the Company include: discovery of a new oil field,
existing production, a balanced portfolio of assets, favorable
industry economics, and a strong management team.
All those value drivers coupled with a favourable tenchical
outlook on the Company's stock was the reason we spotlighted
American Petro-Hunter, Inc. (OTCBB:AAPH) as our latest U.S.
Company Spotlight.
Company
Properties
Kansas
Kansas ranks among the top ten States in crude oil
production. The Anadarko Shelf in southwestern Kansas
contains the Hugoton Gas Area, one of the top producing
natural gas fields in the United States. The Mid-Continent
Center, located in Wichita, is a key natural gas supply hub.
It merges production from several States in the region
before piping it east toward major consumption markets.
Natural gas production from coal-bed methane is rapidly
expanding in the Cherokee Platform, where reserves have
become economically recoverable.
The Kansas oil and gas industry is nearly a $6.3 billion
industry with over 2,100 licensed oil and natural gas
producers producing nearly 40 million barrels of oil
annually and over 383 billion cubic feet of natural gas
annually in Kansas.
Texas
Texas is the leading crude oil-producing State in the U.S.
with its signature crude oil. Known as West Texas
Intermediate (WTI), it is the benchmark of crude oil in
America. Texas’s 27 petroleum refineries can process more
than 4.7 million barrels of crude oil per day. They account
to more than one-fourth of the total U.S. refining capacity.
In addition, approximately three-tenths of the total U.S.
natural gas production occurs in Texas, making it the
nation’s leading natural gas producer.
Texas has known petroleum deposits of about 5 billion
barrels. This is equivalent to approximately onefourth of
the known U.S. reserves. Several petroleum companies are
based in Texas such as: Conoco-Phillips, Exxon-Mobil,
Halliburton, Valero, and Marathon Oil.
California
California is rich in both conventional and renewable energy
resources. It has large crude oil and substantial natural
gas deposits in six geological basins, located in the
Central Valley and along the Pacific coast. Most of those
reserves are concentrated in the southern San Joaquin Basin.
Seventeen of the Nation’s 100 largest oil fields are located
in California, including the Belridge South oil field, the
third largest oil field in the contiguous United States.
California ranks third in the United States in petroleum
refining capacity and accounts for more than one-tenth of
total U.S. capacity. California’s largest refineries are
highly sophisticated. They are capable of processing a wide
variety of crude oil types designed to yield a high
percentage of light products like motor gasoline.
Rooney Oil Project, Kansas
American Petro-Hunter owns a 50% Working Interest and 40.75%
Net Revenue Interest in the Rooney Project, located at Ford
County Kansas. Site preparations at the #24-1 Double H Well
were completed and the Company commenced of full scale
commercial oil and gas production on Jaunary 05, 2010,
reaching initial production levels of 240 BPD equivalent.
Management considers this acreage to be a “core” land holding,
one with future development that can provide the basis for the
requisite BOE production necessary to meet corporate
intermediate and long term goals.
In addition to the eight sections totaling 5,120 acres in
T-29-S, R-24 & 25W Ford County, AAPH has reported that it
leased an additional three sections of land totaling 1,920
acres. This increases the current Rooney Project land position
to over 7,000 acres.
An additional offset location will be created in order to
fully exploit the acreage at Rooney by January 2010 and
management expects to drill an additional well every month for
the next 8 months. Full development of the field could produce
up to 600 BOPD of light oil. Estimates for recoverable barrels
of oil are estimated to total approximately 3 million barrels
under lease at the 10 drilled locations.
Poston Prospect, Kansas
American Petro-Hunter owns a 25% Working Interest and 20.4%
Net Revenue Interest in the Poston Prospect, located in Trego
County Kansas. The 750 acre block contains a potential multi
well program with the first named the #1 Lutters Well. The
well was drilled and completed in June 2009 and is currently
in production. There is excellent transportation and support
infrastructure in the area easily supporting a requisite
storage tank battery at the location. American Petro-Hunter
has achieved a cashflow status for the Poston Prospect.
An additional two to three offset locations are needed in
order to fully exploit the acreage at Poston. Full development
of the field could produce up to 400 BOPD of light oil.
Estimates for recoverable barrels of oil are up to 60,000 per
well location, or 240,000 barrels total under lease with 4
locations drilled.
Colby Prospect, Kansas
American Petro-Hunter has acquired a 25% Working Interest and
20.4% Net Revenue Interest in the Colby Prospect, located in
Thomas County, Kansas. The 500 acre block owned by AAPH is a
viable location with a well defined 3D seismic anomaly that
includes seven potential zones for testing. The management
expects to drill the first test well in the immediate term.
Current estimates place the potential production from the
indicated pay zones at between 75 and 100 barrels per day.
Full development of the field from two or three offset well
locations on the structure could produce between 200 and 400
BOPD.
Sacramento Gas Prospect, California
American Petro-Hunter has acquired a 25% working interest in
the Sacramento Gas Project, located west of Modesto in the
Central Valley of California, near Sacramento. Potential
Recoverable Reserves have been calculated to be 42 BCF at a
depth of 7,400 feet within sands. Third party engineering
results show that if the pay zone is 100% gas filled and the
well is brought into commercial production, an IPR (initial
production rate) of 5,000 Mcf per day can be easily achieved.
Based on the analog field’s production rate, the Company
targets daily commercial production rates between 2,000 to
4,000 Mcf per day.
Recent News and Press Releases
American Petro-Hunter Releases Video of Recent Oil Reservoir
Discovery
PR Newswire (Wed, Mar 3)
American Petro-Hunter Updates Events at New Kansas Oil
Reservoir Estimated to Contain 3M Barrels of Oil
Marketwire (Tue, Mar 2)
American Petro-Hunter Drilling New Oil Well at Rooney Project,
Kansas
Marketwire (Mon, Feb 22)
American Petro-Hunter Announces Details of New Discovery at
Rooney Project, Kansas
Marketwire (Wed, Feb 10)
American Petro-Hunter Announces Spud Date for New Oil Well at
Rooney Project, Kansas
Marketwire (Wed, Feb 3)
American Petro-Hunter Updates Developments at the #24-1 Double
H Well at Rooney, Kansas
Marketwire (Mon, Feb 1)
American Petro-Hunter Obtains New Research Report and Equity
Opinion on the Company
Marketwire (Mon, Jan 25)
American Petro-Hunter #24-1 Double H Well in Production at
Rooney
Marketwire (Mon, Jan 11)
American Petro-Hunter Updates Preparations for Oil Production
at Rooney Project -- Company Adds Additional Acreage to
Holdings
Marketwire (Mon, Jan 4)
American Petro-Hunter Announces Development Plans for Rooney
Oil and Gas Project
Marketwire (Mon, Dec 21)
American Petro-Hunter Completes #24-1 Double H Well --
Prepares for January Oil and Gas Production at Rooney, Kansas
Marketwire (Tue, Dec 15)
American Petro-Hunter's Rooney Project Tests at Over 200
Barrels of Oil per Day With Estimated 500,000 Barrel Potential
Marketwire (Wed, Dec 9)
Management
Robert B. McIntosh
President & CEO
Mr. McIntosh is a businessman and consulting geologist with a
proven track record spanning the past 25 years. He brings
diverse experience both as a resource exploration geoscientist
alongside noteworthy strengths in all facets of corporate
development. Since 1983 his career has taken him across the
Americas and abroad where he has been instrumental in the
design, implementation, execution and management of programs
in the oil, gas, precious and base metals segments of the
resource sector. His skills encompass virtually every aspect
of oil & gas exploration, well completion and production
techniques along with extensive experience in project
acquisition, contract negotiation, and project divestitures
within the petroleum industry. He has developed singular
expertise and broad industry contacts in his various roles
across the publicly traded market sector as well as with
private junior E&P companies. Mr. McIntosh has successfully
assisted his clients and stakeholders in the U.S.A. and Canada
on projects that ultimately became producing properties where
he has significantly contributed towards full-field
exploitation programs utilizing both traditional and secondary
forms of drilling and completion along with ongoing wellsite
supervisory management aimed at fully optimizing the potential
of each asset.
Dan Holladay
Director
Mr. Dan Holladay is oil industry management consultant based
in Wichita Kansas. He graduated in 1983 graduate from the
University of Eastern New Mexico with an Associate degree in
Petroleum Management following extensive studies at the
University of Kansas in geology. After a short career in a
variety of oil field work he began a 25 year career as an
Investment Adviser for firms such as AG Edwards where he
advised high net worth clients. Recently, Mr. Holladay has
been working as an independent oil industry management
consultant where he has been identifying, evaluating and
assisting companies and individuals on a variety of Kansas
based oil and gas prospects for both exploration and
production projects. He will continue this role for American
Petro-Hunter with a focus on the current Kansas asset as well
as the development of future prospects.
John J. Lennon
Secretary Treasurer
Mr. Lennon has served as Treasurer and VP of Finance of
Brite-Strike Tactical Illumination Products, Inc., since May
30, 2008. Previously, he was President of LED Power Group,
Inc. from December 2008, President of Chamberlain Capital
Partners from 2004, Director of American Durahomes from 2006
and Treasurer/Director/VP of Finance of US Starcom from
2005-2007. Chamberlain Capital Partners assists companies in
the area of maximizing shareholder value through increased
sales, cost reduction and refined business strategy. Mr.
Lennon has also assisted companies in obtaining debt
financing, private placements or other methods of funding. On
December 31, 2007, Mr. Lennon was appointed Chief Executive
Officer, President, Chief Financial Officer, Secretary,
Treasurer and director of Explortex Energy Inc., a publicly
reporting company, which is a natural resource exploration
company engaged in the participation in drilling of oil and
gas in the United States. From 1987 to 2004, Mr. Lennon served
as Senior Vice President of Janney Montgomery Scott,
Osterville, MA, Smith Barney and Prudential Bache Securities,
managing financial assets for high net worth individuals.
Contact
American Petro-Hunter, Inc.
17470 N. Pacesetter Way
Scottsdale, AZ 85255
info@aaphinfo.com
Investor Relations:
Bakerview Investor Relations, Inc.
1-888-521-7762
investors@aaphinfo.com
FORWARD LOOKING STATEMENTS
This report includes forward-looking
statements that reflect American Petro-Hunter, Inc. current
expectations about its future results, performance,
prospects and opportunities.
American Petro-Hunter, Inc. has
tried to identify these forward-looking statements by using
words and phrases such as "may," "will," "expects,"
"anticipates," "believes," "intends," "estimates," "plan,"
"should," "typical," "preliminary," "we are confident" or
similar expressions. These forward-looking statements are
based on information currently available and are subject to
a number of risks, uncertainties and other factors that
could cause American Petro-Hunter,
Inc.'s actual results,
performance, prospects or opportunities to differ materially
from those expressed in, or implied by, these
forward-looking statements. These risks, uncertainties and
other factors include, without limitation, the Company's
growth expectations and ongoing funding requirements, and
specifically, the Company's growth prospects with scalable
customers, and those outlined above. Other risks include the
Company's limited operating history, the Company's history
of operating losses, consumers' acceptance, the Company's
use of licensed technologies, risk of increased competition,
the potential need for additional financing, the terms and
conditions of any financing that is consummated, the limited
trading market for the Company's securities, the possible
volatility of the Company's stock price, the concentration
of ownership, and the potential fluctuation in the Company's
operating results.
Disclaimer
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do your own research before investing. It is crucial that
you at least look at current SEC filings and read the latest
press releases. Information contained in this report was
extracted from current documents filed with the SEC, the
company web site and other publicly available sources deemed
reliable. For more information see our disclaimer section, a
link of which can be found on our web site. This document
contains forward-looking statements, particularly as related
to the business plans of the Company, within the meaning of
Section 27A of the Securities Act of 1933 and Sections 21E
of the Securities Exchange Act of 1934, and are subject to
the safe harbor created by these sections. Actual results
may differ materially from the Company's expectations and
estimates. This is an advertisement for
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