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Americas Energy Company (OTCBB: AENY – previously OTCBB: TRET): To the Growth-Minded Investor: Americas Energy Company (OTCBB: AENY) is a junior coal producer which is accruing claims in premium Appalachian coal. Currently operating mining projects in both Kentucky and Tennessee, they're properties represent in excess of 25 million short tons of high BTU mid-sulfur bituminous coal. In addition, they have acquired mineral rights to 5 operational oil wells, with another 95 wells pending, on 1,700 acres of oil-rich Kentucky land. More specifically, on October 7th, Americas Energy Company announced the beginning of mining operations in Bell County, Kentucky where it holds $1.26 billion in coal reserves. They are working with Vermeer, an innovative heavy equipment manufacturer to utilize their new “Terrain Leveler” technology to more efficiently produce coal. Just starting out, it is projected this site will generate $900,000 a month in revenue for the company. By the end of the first year, Americas Energy Company projects its revenues will soar to $4.3 million a month. On October 21, the company announced preparations for exploiting another 4.57 million tons of metallurgical grade coal that commands top dollar in the market. This resource projects to almost $320 million in coal. Add to that another 8.0 million tons of coal immediately surrounding that resource and it ups the coal value to almost $800 million. According to the company’s business plan, Americas Energy Company is presently negotiating to lock in a whopping 341 million ton resource totaling $20.46 billion in coal. Coal Demand Rising Dramatically Global demand for high-quality Appalachian coal is increasing. Coal is the fuel of industry and the fuel of electricity. In the United States, half our electricity is generated from coal. That won’t change any time soon. Overseas, the figures are even higher. What’s more, an epic supply crisis is crippling two of the largest coal-consuming economies on the planet, India and China. In India, coal is used to fire 68% of their electrical generation capacity. Power plants are being shut down for lack of coal. In China, the problem is worse. Fully 81% of Chinese electricity production is fueled with coal… and that number is increasing as one new coal fired power plant is being built in China per week. Coal exports from the United States have been pushed to levels not seen in over a decade. In 2008, total coal exports were 81.5 million short tons, an increase of 22.4 million short tons over 2007. That is a 37.8% increase. Even more, the average price of coal exports was $97.68 per short ton in 2008, an increase of 39% over 2007. Still for India or China, Appalachian coal is a bargain they will not overlook and it’s the only section of the United States where coal can be easily exported. It’s also the best coal on the planet, packing more BTUs per ton than any other coal produced worldwide. That makes it the perfect coal for shipping. Put Appalachian Oil In The Mix Too On September 22, Americas Energy Company also announced the first results coming off its 1,700 acre Kentucky oilfield. This is an area that has been well explored with a substantial body of data showing where and how much oil is yet to be produced. Many of these sites are ready to produce economically for the first time in years. Americas Energy Company is aiming to make that happen. Improvements in the first of five existing wells on the Americas Energy Company field produced exceptional results. Oil production was ramped up to as much as 40 barrels per day, with stable production rates of up to 20 barrels a day. With plans in place for an additional 95 wells on the property, AENY could achieve well production totals from this field approaching 730,000 barrels per year. That's another $58.4 million in revenues, making Americas Energy Company a valuable investment opportunity. | ||||||||
Wednesday, December 9, 2009
AENY becomes Profit Opportunity of a Lifetime thanks to Buffett
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