Amazing Energy Produces from 70,000 Acres in the Permian

Bob Moriarty
Archives
Oct 17, 2017

A recent study concluded that the Permian Basin located in West Texas and extending into New Mexico still contains 60 to 70 billion barrels of oil ready to pump.

Amazing Energy (AMAZ-OTCQX) has the rights to 70,000 acres in the Permian. A recent sale of land to Occidental Petroleum just west of Amazing’s land valued acreage at $1512. With about 66 million shares outstanding, if Amazing got the same price for their land, the stock would be worth $1.59. If Amazing only received $1,000 an acre for their land, the shares would still be worth $1.06 apiece.

The company is currently producing about 100 BOEPD and has an aggressive drill program scheduled that calls for production of 1500 BOEPD in less than a year and 3000 BOEPD in two years.

As of the 16th of October, Amazing has spudded two shallow wells that will be followed closely by another six wells. Amazing owns their own drill rig and can complete a well in ten days. They anticipate production of about 50 BOEPD from each of the shallow wells.

These shallow wells will cost between $250,000 and $300,000 to drill. The value of a single BOEPD is between $20,000 and $30,000 so a fifty barrel well is worth between $1 million and $1.5 million. That makes the rate of return between 300% and 650%. Of the last 23 wells they drilled 100% were successful.

In the deep well portion of what the company calls Phase 1, they plan on four deep wells costing as much as $1.5 million apiece. They expect about 275 BOEPD out of those wells.

The company does an excellent job of communication and any investors interested in a high potential low cost energy producer should view their presentation.

I liked the story when I heard it and bought a bunch of shares in their latest private placement. It’s cheaper now than it will be in the future.

Amazing is an advertiser, I own shares and as such, I’m biased. Do your own due diligence.

Amazing Energy Oil and Gas
AMAZ OTCQX $.35 (Oct 16, 2017)
66 million shares
Amazing Energy website

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Bob Moriarty
President: 321gold
Archives

321gold Ltd