American Patriot Oil & Gas, Ltd. (OTCQB: ANPOF): 1 Million

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American Patriot Oil & Gas, Ltd. (OTCQB: ANPOF): 1 Million Barrels of Oil Certified Reserves, Ramping Up Revenue Growth and Production Across Energy Projects

Despite the current low oil prices and oversupply, U.S. oil production is forecast to grow through 2050. According to Statista, U.S. oil production will come in around 18.22 quadrillion Btu for 2017. By 2050, experts predict that U.S. oil production will hit 20.53 quadrillion Btu, after hitting a high of 22.04 quadrillion Btu in 2029. In short, experts do not expect the oil glut will deliver a fatal blow to the U.S. oil & gas markets. While energy prices may go through cycles, it appears that the current glut will start to unwind between late 2018 and 2019.

If economists and energy experts are correct with oversupply issues being worked out by 2019, then the current environment could be a great opportunity for oil & gas companies to acquire distressed and producing energy properties while prices are cheap. One such oil & gas company that is taking advantage of the current environment and positioning for the next oil bull run is American Patriot Oil & Gas Limited (OTCQB: ANPOF) (ASX: AOW).

Overview: American Patriot Oil & Gas Limited (OTCQB: ANPOF) (ASX: AOW)

American Patriot Oil & Gas Limited (OTCQB: ANPOF) (ASX: AOW) operates as an oil & gas exploration and development company and is based out of Melbourne, Australia. The company’s U.S. office is located in Denver, Colorado. The company has six active oil & gas projects across Montana, Utah, Colorado, Wyoming, and Kansas. In addition, American Patriot Oil & Gas Limited (OTCQB: ANPOF) (ASX: AOW) recently acquired two oil & gas projects in Texas. The recent acquisitions are just the beginning of the planned buying spree to take over viable conventional oil & gas projects across Texas and the Gulf Coast.

American Patriot Oil & Gas Limited (OTCQB: ANPOF) (ASX: AOW) seeks to continue acquiring conventional oil & gas-producing properties that have low operating costs. Furthermore, the acquisition target must be onshore locations that also have independently certified reserve reports. Through reserve reports, American Patriot Oil & Gas Limited (OTCQB: ANPOF) (ASX: AOW) will then look to tap production through shut-in wells and other work-over potential opportunities to enhance the production on the existing fields. The reports also give the company an opportunity to utilize 3D seismic imaging to see if there are overlooked oil and gas deposits nearby on its leases for additional upside.

ANPOF: Current Projects

The oil & gas company has six active projects located across the United States:

Northern Star
American Patriot Oil & Gas Limited (OTCQB: ANPOF) (ASX: AOW) ‘s northern most project located in northeast Montana. The company has a 21.50% working interest in the project, which stretches 61,489 acres and could hold over 50 million barrels of oil.

Panther
The Panther Project covers 12,430 gross acres in the Blood Creek Syncline, which is located in Garfield County, Central Montana. American Patriot Oil & Gas Limited (OTCQB: ANPOF) (ASX: AOW) holds 100% working interest in the project.

Overthrust
The company holds 100% working interest in the Overthrust project, which covers 640 gross acres within the Wyoming Overthrust Belt.

Rough House
The Rough House Project is a conventional oil operation. Drilling began during the first quarter 2017 and the target is to hit over 200 barrels of oil per day (BOPD). American Patriot Oil & Gas Limited holds a 30% working interest stake in the Rough House Project. The project covers 24,221 gross acres within the DJ Basin, which covers Washington, Lincoln Arapahoe and Elbert Counties in Colorado.

Livengood
American Patriot Oil & Gas Limited (OTCQB: ANPOF) (ASX: AOW) partnered with Running Foxes Petroleum, Inc. to explore and develop the Kansas-based Livengood oil field. Management calls the oil field “low risk, long term, consistent with predictable production.”

Southern Sun
The Southern Sun Project spans 3,728 gross acres within the Paradox Basin, which is located in San Juan County, Utah. The acreage has conventional and unconventional potential. Included within the land mass is a 480-acre conventional oil project called Tin Cup Mesa. American Patriot Oil & Gas Limited (OTCQB: ANPOF) (ASX: AOW) holds 100% working interest in the Southern Sun Project, after it was acquired in early 2013.

ANPOF: Recent Acquisitions and Updates

First Texas Oil & Gas Acquisition

American Patriot Oil & Gas Limited (OTCQB: ANPOF) (ASX: AOW) has made two significant oil & gas acquisitions over the last two months. On August 2, 2017, the company announced that it has acquired conventional oil & gas assets in south Texas for $4.5 million. According to independent reserve reports, the acquired assets have 900,000 barrels of proven oil & gas reserves. Based on an oil price of $47 per barrel, the assets could generate $2 million in annual net cash flow. Ultimately, the acquisition was broken into two tranches.

The first tranche included assets that were acquired from Safari Oil and Gas Production, Inc. and Anasazi New Ventures Corporation through purchase and sales agreements and asset assignments. In exchange, American Patriot Oil & Gas Limited (OTCQB: ANPOF) (ASX: AOW) received 100% of their oil and gas assets located in Hidalgo, Hopkins, and Goliad Counties in south Texas.

The first tranche assets have oil and gas production of 170 barrels of oil equivalent per day (boepd) and holds independently certified reserves of 300 thousand barrels of oil equivalent (mboe). In addition, the purchase comes with 30 well bores with existing production and the capability of increasing activity.

The second tranche assets are “expected to more than double the production and reserve base acquired in Tranche 1 delivering an additional 120boepd and 1P reserves of 600mboe.”
As a result of the success acquisition, American Patriot Oil & Gas Limited (OTCQB: ANPOF) (ASX: AOW) CEO Alexis Clark provided a statement saying:
“Completing this transaction transforms American Patriot into a US oil production company with an immediate and growing cash flow and reserve base. We are now well on the path to being cash flow positive and importantly this is only the first of many such deals to come as Tranche 2 is on track to close in September more than doubling the production in this deal and we have a number of additional transactions in the pipeline set to close in the second half of 2017, which will further accelerate the production growth and reserves of American Patriot.”
“We have acquired these assets at a low cost entry point and with production upside potential which positions American Patriot well should commodity prices rebound. The cash flow and production growth from these assets even at current oil prices will generate significant cash flow and revenue for American Patriot more than covering existing costs and importantly the assets are economic at low oil prices”

Second Texas Oil & Gas Acquisition

The second Texas oil & gas assets were acquired from major lender of a Chapter 11 bankruptcy case, Solstice Capital, LLC, for $430,000. According to the independently certified reports, the new asset could generate around $11 million in total revenue with a PV10 value of $3 million. The acquired assets are located in the Lost Lake and Goose Creek Oil Fields, which contain 300,000 barrels of proven oil and gas reserves. Management estimates that assets could produce 50 barrels of oil per day with minimal rework and eventually hit as high as 150 barrels of oil per day.

As a result of the two major Texas acquisitions, American Patriot Oil & Gas Limited (OTCQB: ANPOF) (ASX: AOW) is on track to reach production of 300 barrels of oil per day and cash flow positive by the end of 2017. Furthermore, the company now holds over 1 million barrels of proven oil & gas reserves, which are certified by independent reserve reports. Over a period of time, management estimates its vast portfolio of oil & gas holdings will generate around $30 million, assuming oil & gas prices remain in the same range.


ANPOF: Heavy Financial Backing Allows For Acquisition Buying Spree

In order to make the right acquisitions, the proper funding and financial backing is needed. In August 2017, American Patriot Oil & Gas Limited (OTCQB: ANPOF) (ASX: AOW) announced it had completed an oversubscribed private placement, which raised AUD$1.3 million. Part of the money raised help complete the second Texas oil & gas acquisition.

The company’s big break came in September 2017, when American Patriot Oil & Gas Limited (OTCQB: ANPOF) (ASX: AOW) announced it has signed a term sheet with a “significant New York-based institutional investor,” to increase its debt facility size to US$40 million.
CEO Alexis Clark stated that the “Execution of this term sheet is a key next step in further progressing American Patriot’s US conventional oil and gas acquisition programme. We welcome the partnership with such a significant New York based funder who are supporting AOW on the back of our conventional oil and gas acquisition strategy in Texas. This increased facility size will enable American Patriot to undertake a number of material acquisitions in the next 12months that will have the potential to significantly grow the production, cash flow and reserves base of the company and generate significant value”
“ We have a busy six months ahead as we have sourced a number of attractive new target assets, as we look to deliver on the strategy of aggressively building a producing conventional oil business with well over 1000bopd production in 2018” This is all underpinned by a growing reserve base.”
ANPOF: Financial and Industry Analysis

As of October 2017, American Patriot Oil & Gas Limited (OTCQB: ANPOF) (ASX: AOW) has a market cap value of AUD$6.28 million. Furthermore, the energy company maintains a share structure consisting of 232.64 million shares outstanding, as of October 2017. During the second quarter 2017, American Patriot Oil & Gas Limited (OTCQB: ANPOF)(ASX: AOW) reported total revenue of AUD$4,000 and a net loss of AUD$349,000. The light revenue is due to the conventional production acquisition program only just commencing.

American Patriot Oil & Gas Limited (OTCQB: ANPOF) (ASX: AOW) is on track to be a major player in the U.S. oil & gas market, as the company continues to search for viable acquisition targets. Primarily, the company focuses on acquiring distressed and producing oil & gas properties across Texas and the Gulf Coast. The latest Texas oil acquisition, which was announced on September 12, 2017, provides the company with 300,000 barrels of proven oil reserves, which is backed by independent reserve reports. At current oil prices, the company could potentially generate revenue of $11 million with a PV10 value of $3 million. This is just the latest acquisition that has been completed; management notes that additional deals are likely to be closed during the fourth quarter 2017.

Here are five other oil & gas companies that could help provide a fair valuation for American Patriot Oil & Gas Limited (OTCQB: ANPOF) (ASX: AOW):

MMEX Resources Corporation (OTC Pink: MMEX) is engaged within the exploration and development of oil, gas, and electrical power projects in Texas, Peru, and more. As of October 2017, MMEX Resources Corporation has a market cap of $17.42 million. In addition, the oil & gas company has a share structure consisting of 3 billion shares authorized and 1.46 billion shares outstanding. During the latest fiscal quarter ending on July 31, 2017, MMEX Resources Corporation reported no revenue and a net loss of $3.98 million.

Perkins Oil & Gas, Inc. (OTC Pink: PEKN) operates as a U.S.-based oil & gas acquisition and development company. The company tends to search for oil & gas leases in up and coming areas, which are still cheap to acquire on a cost-per-acre basis. The energy company has a market cap of $10.8 million, as of October 2017. Furthermore, Perkins Oil & Gas, Inc. has a share structure of 50 million authorized shares and 6.75 million outstanding shares, as of August 2017. During the first quarter 2017, Perkins Oil & Gas, Inc. reported no revenue and a net loss of $4,000.

Petro River Oil Corp. (OTC Pink: PTRC) is engaged as an oil & gas acquisition and development company, which utilizes 3D seismic analysis and other technology to help locate overlooked energy deposits in historically prolific producing areas. As of October 2017, the oil & gas company has a market cap of $32.48 million and 15.84 million outstanding shares. During Petro River Oil Corp.’s latest fiscal quarter ending on July 31, 2017, the company reported total revenue of $8,000 and a net loss of $879,000.

Apache Corporation (NYSE: APA) operates as an independent oil & gas company, which has most of its assets located within the Permian Basin, Mid-West/Gulf Coast, Canada, Gulf of Mexico, Egypt, and the North Sea. In September 2016, Apache Corporation made headlines, after discovering 3 million barrels of oil in West Texas. The discovery came as a result of seismic imaging technology, which utilizes sound waves to help find potential oil & gas deposits. As of October 2017, Apache Corporation has a market cap of $17.29 billion, 380.93 million shares outstanding, and a float consisting of 380.16 million shares. During the second quarter 2017, the oil & gas company reported total revenue of $1.35 billion and net income of $572 million.

Exxon Mobil Corporation (NYSE: XOM) is one of the largest oil & gas companies in the world, with assets and operations scattered all throughout the globe. As it turns out, Exxon Mobil Corporation was one of the pioneering oil companies in developing and utilizing 3-D seismic technology to locate energy deposits. The oil giant now has 4-D seismic imaging capabilities, which allow for time-lapse imagining and full wavefield inversions. Through these detailed images, the company can get an even better picture of where potential deposits may be located. As of October 2017, Exxon Mobil has a market cap of $346.96 billion, 4.24 billion shares outstanding, and a float consisting of 4.23 billion shares. During the second quarter 2017, the company reported total revenue of $60.83 billion and net income of $3.35 billion.

American Patriot Oil & Gas Limited (OTCQB: ANPOF) (ASX: AOW) is considerably undervalued, when comparing against the three OTC oil & gas companies that were mentioned above. MMEX Resources Corporation and Perkins Oil & Gas, Inc. have massive market caps of $17.42 million and $10.8 million, respectively. However, these two companies have absolutely no revenue whatsoever. Meanwhile, American Patriot Oil & Gas Limited (OTCQB: ANPOF) (ASX: AOW) is a revenue-producing company that has a market cap under $10 million. This simply shows that the markets are massively overvaluing some oil & gas companies, while overlooking others. Overall, American Patriot Oil & Gas Limited (OTCQB: ANPOF) (ASX: AOW) is on track to be cash flow positive by the end of 2017, as the company continues to expand its oil & gas properties.

Disclaimer:
Spotlight Growth is compensated, either directly or via a third party, to provide investor relations services for its clients. Spotlight Growth creates exposure for companies through a customized marketing strategy, including design of promotional material, the drafting and editing of press releases and media placement.
All information on featured companies is provided by the companies profiled, or is available from public sources. Spotlight Growth and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever and we are not qualified to give financial advice. The information contained herein is based on external sources that Spotlight Growth believes to be reliable, but its accuracy is not guaranteed. Spotlight Growth may create reports and content that has been compensated by a company or third-parties, or for purposes of self-marketing. Spotlight Growth was compensated five hundred dollars cash and three hundred dollars in restricted stock for the creation and dissemination of this content.
This material does not represent an investment solicitation. Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements with respect to the Company's plans and objectives, projections, expectations and intentions. These forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management.
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