Next Investors logo grey

First drop of oil revenues fills American Patriot coffers

Published 17-NOV-2017 11:25 A.M.


2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

American Patriot (ASX:AOW) has generated its first revenues, as part of a broader strategy to enter US-based oil production. Having acquired oil and gas assets in South Texas and Louisiana earlier this year, AOW has moved quickly to ensure it closes out the year with at least 500 barrels of oil equivalent per day (BOED) in production and is on track to become cash flow positive in 2018.

The factor underpinning AOW’s overarching strategy in the US Midwest, is its focus on value-accretive acquisitions throughout the region and enhancing production rates in all locations.

The management team at AOW, led by CEO Alexis Clark, is transforming AOW into a significant conventional oil and gas production company focused on assets that have significant production upside via shut in wells.

It is still early stage, however, and investors should seek professional financial advice if considering this stock for their portfolio.

AOW has announced a number of recent acquisitions with a focus on acquiring conventional producing properties with low operating costs onshore USA. Earlier this month, AOW reported that its newly-acquired US-based assets currently have around 38 producing wells over 43 leases with an average net revenue interest (NRI) of 76%. Estimated reserves are 400,000 bbls oil and 4 bcf gas.

Given current market conditions, AOW is on track to achieve a production rate of 500 barrels of oil equivalent (boe) per day by the end of 2017 with over 2 million barrels of proven oil and gas reserves available to AOW without conducting additional exploration activity. The assets AOW currently owns have been certified by independent reserve reports and are expected to generate at least US$50 million in revenue (assuming an oil price of US$50/bbl).

American Patriot CEO Alexis Clark said: “We are pleased to record our first oil and gas revenues from the recently completed South Texas transactions and we look forward to shortly closing the most recent transaction we have announced, which will add further to the company’s production profile. This production and revenue base is expected to increase significantly as we continue to acquire new assets, and enhance production in the field.

alexis clark

“American Patriot has its sights set on becoming a significant US oil and gas production company and with the backing of our US funders, we are well on the way to achieving this. We are continuing to find attractive conventional assets with significant upside potential in the current market and we are currently completing due diligence on assets which are more than five times the size of our recent acquisitions. With the pipeline of deals in front of us, 2018 is shaping up to be a significant year.”



General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.