Investorideas.com - Research for Bakken Stocks; American Petro-Hunter (OTCBB: AAPH) Report Available to Energy Investors
"Based on an average of these methods, AAPH common stock is valued at $1.02 per share, 191.3% higher than current market price of $0.34" - Grass Roots Research and Distribution
Visit this company: www.americanpetrohunter.com
Point Roberts, WA - November 1, 2010 - The Investorideas.com Energy Newswire is pleased to feature the following Bakken/ Oil and Gas stock research report on American Petro-Hunter Inc (OTCBB: AAPH), written by Grass Roots Research and Distribution, Inc for interested oil and gas stock investors.
Investorideas.com features third party research in multiple industry sectors including energy, biotech and mining. More third party research reports can be found at http://www.investorideas.com/Research/.
Full report at www.grassrootsrd.com and http://www.investorideas.com/CO/AAPH/Cohen_AAPH_report_100510.pdf
INVESTMENT THESIS & RECOMMENDATION; Written by Grass Roots Research and Distribution, Inc.
American Petro-Hunter, Inc. (OTCBB: AAPH) is a rapidly growing, expertly managed exploration and production (E&P) company. The Company intends to become an intermediate level oil and gas producer within the next 12 months. AAPH’s business strategy is based on acquiring and developing high quality projects with existing and expansion potential. The Company is currently focused on expanding its acreages/ leases at its North Oklahoma Project and building a strong, balanced and diversified portfolio of oil and gas assets. American Petro is revenue positive and is in production at its Poston Project.
American Petro-Hunter intends to become a 500-1000 BOE producer in the next 12-36 months by aggressively developing its Poston and North Oklahoma Oil Project as well as continuing to engage in exploratory drilling opportunities on its Colby Prospect and Sacramento Gas Prospect. The Company further intends to expand its acreages across North America.
Key corporate value drivers include: discovery of a new oil field, existing production capabilities, a balanced portfolio of assets, favorable industry economics, recent funding arrangement and a strong management team. Providing the Company raises approximately $5.0 million of total capital, we forecast significant top line growth. Revenues are expected to grow from $0.5 million FYE December 31, 2010 to more than $11.8 million by FYE 2014.
AAPH is potentially a lucrative investment opportunity in the oil and gas E&P space and provides an upside potential of 191.3% in the short term and long term.
Financial Forecasts and Valuation
We expect revenues of $0.5 million for FYE 2010 and more than $11.8 million by 2014. The Company is also expected to efficiently manage operations and command significantly higher operating margins and net profit margins.
The Cohen Price Index Target is calculated using 2011 Price-to-Earnings ratio (P/E), Cohen Price-to-Capital Employed ratio (P/CE), Cohen Discounted Cash Flow (DCF) method and Cohen Price Performance Index. The P/E and P/CE are based on market multiples and representative of the broader industry in which the Company operates. The Cohen Price Performance Index is a representative of the post coverage performance of all stocks covered by us. The last component in calculating the Cohen Price Index Target is the value derived using the long-term DCF valuation approach.
Based on an average of these methods, AAPH common stock is valued at $1.02 per share, 191.3% higher than current market price of $0.34.
We believe our valuation is conservative, and assuming the Company raises equity capital and is able to explore over 2000 barrels of oil, the stock could trade at much higher levels in the long run.
Grass Roots Research and Distribution, Inc. CONCLUSION:
"....We expect significant growth potential from AAPH’s prolific oil and gas projects in Oklahoma and Kansas in the immediate to medium term. The prospects of the Company have further brightened after it went in-production at its core acreage at the Northern Oklahoma Project and the Rooney Prospect. This will expedite revenue growth and increase free cash flows, thus providing the capital expansion and commercialization of its other projects. Revenues are expected to grow from $0.5 million for Fiscal Year End (FYE) December 31, 2010 to more than $11.8 million by FYE 2014. Note: our projections assume that the Company will be able to achieve our forecasted targets provided it raises a total of $5.0 million funding. The quality of the portfolio’s assets is excellent. We believe this quality together with the experience and proven track record of its management team will enable enhanced returns on investment. The Company intends to become an intermediate level oil and gas producer. It will achieve this level as a producer by acquiring and developing high quality projects with existing production and expansion potential. In addition it will possess defined-risk developmental and exploratory drilling opportunities. American Petro-Hunter provides an exciting short term and long term investment opportunity."
To read full article please check out www.grassrootsrd.com and http://www.investorideas.com/CO/AAPH/Cohen_AAPH_report_100510.pdf
American Petro-hunter Inc (OTCBB: AAPH) is a showcase Oil and Gas stock on Investorideas.com (please read disclosure and disclaimers)
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