NAEY Signs LOI to Acquire An Additional 480 Mineral Acres
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North American Energy Resources
(NAEY)Website: www.NaeyInc.com
Overview
North American Energy Resources (NAEY) is an independent oil and natural gas company, engaging in the acquisition, exploration, and development of oil and natural gas properties with a focus on properties in northern Oklahoma. Currently NAEY has leases on 900 acres and plans to acquire an additional 1,400 acres within the next 90 days.
Its wells produce both oil and/or natural gas, with gas production coming primarily from the mulky coal seam.
The company’s primary goal is to acquire natural gas and oil properties that are relatively close to NAEY’s Apwash pipeline of which it owns 75% interest in. This pipeline will provide service to approximately 11,500 acres of potential leases that contain multiple zones of oil and CBM formations.
NAEY has positioned itself to achieve significant profits on a number of producing properties and as an added bonus for the Company, in its search for natural gas it also discovered significant oil deposits in the process.
NAEY Investor Highlights
Just announced that it has entered into a letter of intent to acquire and additional 480 mineral acres in Washington County, Oklahoma. The leases include 14 existing oil producing wells. At current oil prices, the acquisition would provide NAEY enough positive cash flow to drill additional wells.
Recently announced that it has entered into a letter of intent to acquire an additional 120 mineral acres in Washington County, Oklahoma. Currently there are 6 wells drilled on the property, 4 of which are currently shut in, but produce natural gas from the Mulkey Formation.
Announced that it has entered into a letter of intent to acquire 37 mineral acres in Washington County, Oklahoma. Currently there are 4 wells drilled on the property, 2 of which produce oil from two separate zones. “The acquisition of this lease should allow NAEY to drill eight additional gas wells and recomplete two existing wells. With natural gas prices expected to rise above $5.00 per mcf by the end of the year, we believe this is an attractive lease within our area of interest,” stated Ross Silvey, President of NAEY.
Recently announced that the company has acquired the Wiser Lease in Washington County Oklahoma. The lease has ten existing oil and gas wells, including the Blackstone well with its recent oil discovery in the Dewey sand.
Has leases on 900 acres and plans to acquire an additional 1,400 acres within the next 90 days.
NAEY through Apwash Pipeline, has recently increased its ownership stake to 75% in a natural gas pipeline located in Washington County, Oklahoma. This pipeline will provide service to approximately 11,500 acres of potential leases that contain multiple zones of oil and CBM formations.
The two Mulky coal wells have been producing for several months and the combined natural gas production is averaging approximately 145mcf per day.
NAEY will target a minimum of 60 well completions per year with a future undiscounted net income that could exceed $60,000,000 at current oil and gas prices.
NAEY’s goal is to complete a minimum of 120 wells over a two year period, maximize lease acquisition around its pipeline and reach a valuation goal of $72,000,000 to $144,000,000.
NAEY originally targeted only coal bed methane production, but recent drilling activity, logs and core samples indicated recoverable oil reserves of 1000 to 2000 barrels per acre. This could increase NAEY’s undiscounted valuation significantly upwards.
Ross Silvey President of NAEY recently stated “If we can fully implement our business strategy, we have over 400 wells that can be re-entered within a two mile radius of our pipeline. This could represent significant cash flow to our company with little financial risk”.
Profile
Nothing quite beats finding something valuable when you’re not looking for it. Such was the fate that befell Texas-based North American Energy Resources, Inc. (OTCBB: NAEY) recently when it set up shop in Oklahoma’s Washington County. Drilling for natural gas, the company soon realized it was sitting on thousands of barrels per day of recoverable oil, on a site that had been abandoned in the 1970s when foreign oil elbowed its way onto the American market, driving prices down to around the $7 mark. The site had been in existence since the Oklahoma oil boom of the 1920s, and may be the catalyst behind a boom for this company.
NAEY is an emerging company – only three years old, and public for less than one year – with the sole purpose of extracting coal bed methane from coal beds mixing unconventional methods with new technology. With new awareness of the need to decrease America’s dependence on foreign oil, it’s a company that bears watching.
Recently, the company bought up four wells in the Mulky Coal section of the Midwest, within the Cherokee group of sediments in the Western Interior Basin. The operator did not attempt to recover the load and the wells were never put in production. Subsequently these wells were acquired by NAEY, who prepared them for production by drilling, pipe-setting and stimulating for pumping the available oil to the surface.
NAEY intends to develop CBM production from a Mulky coal seam in the North Bartlesville oil field. The North Bartlesville field is one of the oldest oil fields in Oklahoma, producing over a million barrels of oil from the Bartlesville sand.
It’s significant for the company because costs are low (only $8,000 per well) with potential recovery of 100,000 barrels. What’s more, a natural gas lease the company acquired this month is nearby to the current pipeline in Washington County so that gas produced can be rushed to market. NAEY also has a working interest in two producing wells operated by an affiliate. The wells have been producing for several months, and the combined natural gas production is 145(mcf) per day.
And beyond oil and natural gas; the market for clean energy industries is estimated to reach $50 Billion by 2015. “With innovative techniques and ethical drilling practices,” says company literature, “NAEY is one company that is ready to balance real energy needs with a very real concern for the planet.”
NAEY’s goal is to complete a minimum of 120 wells over a two-year period, maximize lease acquisitions around its pipeline and reach a valuation goal of upwards of $144,000,000. NAEY is definitely a Company that investors will hear a lot more about down the road, as it starts tapping into its new found in-ground wealth.
Dr. Ross E. Silvey – President Mr. Silvey graduated with an MBA from the Harvard Business School. He has also been awarded the Ph.D. degree from the Walden Institute of Advance Studies. He has owned and operated franchised automobile businesses, finance companies and insurance companies for over thirty years. Dr. Silvey has taught as an adjunct or full-time professor most of the courses in the upper division and MBA programs at the University of Tulsa, Oral Roberts University, Langston University and Southern Nazarene University. Dr. Silvey is an Independent director for Double Eagle Holdings, Ltd and serves as Chairman of the Audit Committee. Dr. Silvey is also an independent director of Global Beverage Solutions, Inc.
Cecil Magana Mr, Magna has been in the Oil and Gas business in Washington County, Oklahoma since 1973. He joined his brother Raymond in forming Magana Oil in 1974. In 1980 the company was split into two separately owned companies. Mr. Magana is responsible for all of the well and lease operations for NAEY, Inc. in Washington County. Additionally, Mr. Magana is actively seeking to increase NAEY’s leasehold interest in and around NAEY’s pipeline interest. An additional 8,000 acres is available for lease in NAEY’s area of interest.
David Ainseworth Mr. Ainesworth has over 45 years of experience operating oil field equipment including pulling units, cable tool rigs, and pumping units. Ainsworth is responsible for NAEY’s electrical and mechanical equipment at the well sites as well as the field supervisions of well completions. He has worked for over ten oil and gas and oil service companies in the area. He has concentrated most of his work experience in Washington County.
Contacts
North American Energy Resources
11005 Anderson Mill Road
Austin, TX 78750
Phone: 512-944-9115
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