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Well Completions Begin at Amazing EnergyBob Moriarty Amazing Energy (AMAZ-OTCQX) holds rights to over 70,000 acres in the Permian Basin. Recently they released results from drilling and completion of their #30 well. The market yawned at the results going from $.225 to a blistering $.2384, almost up 6% in ten days. Volume in the shares requires a reservation two weeks in advance in order to buy or sell a $1000 position. It’s a real pity the market doesn’t understand either the numbers or the story. The well was drilled to 1,768 feet. That costs about $150,000 to do. Initial flow is stable at 30 BOEPD. Amazing plans on drilling an additional 24 of the sub-1800 foot wells over the next year and pumping them at 20 BOEPD. Each would generate $32,480 per month net if you use $60 a barrel oil, which is pretty conservative. It does take about three months after drilling to achieve stable production so it means payout in about 7.5 months. That’s a return on investment of about 38%, not all that shabby. It means gross revenue of about $780,000 a month or $9.3 million a year. They have 3,500 potential drill locations within the Queen Sand formation and up to 21,000 drill locations in the other 10-15 oil formations within the 70,000 acres. You can do the math; all those zeros tend to blow up the memory in my Bowmar Brain. The company has done a rotten job of updating their website with current press releases but I have sent a nasty-gram to them on the issue and I hope they will read. In any case their presentation is more or less current and will give investors a better idea of the potential. With a market cap of about $12.5 million they have a bright and amazing future if they will execute the plan. Amazing is an advertiser and I have participated in past private placements. Naturally I am biased and you should do your own due diligence. Amazing Energy Oil and Gas ### Bob Moriarty 321gold Ltd |
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