American Patriot Oil & Gas (ASX: AOW)

 
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American Patriot (ASX:AOW) has just acquired a conventional oil and gas asset in Texas giving it an immediate 50 barrels of oil per day that is likely to increase to over 150bopd in the short term.

The acquisition is part of AOW’s overall gameplan of paying cents on the dollar for distressed but highly viable oil production resources that any oiler would consider adding to their production portfolio.

AOW has already amassed around 300boepd of active production across the US Texas and Gulf Coast regions as it looks to net a significant producing business, reaching 3,000 BOPD by 2019.

The company has made the latest acquisition for just US$430,000 with independent reserve reports suggesting it is worth US$3 million

This recent news follows AOW’s game-changing acquisition just weeks ago, when it picked up another distressed asset for US$4.5 million, with low production costs set to translate into strong margins.

That acquisitions alone is expected to generate more than US$2 million in annual net cash flow, at US$47 a barrel oil prices, so the upside here is substantial. 

The information on this page should not be the only trigger for your investment decision. Click on the links below for a more in-depth and informed examination of the company. We strongly recommend you seek professional financial advice whenever making financial investment decisions.

AOW intends to raise its production calibre to over 3,000bpd.

If it can do this, which is looking more and more likely, this micro-capped oiler should have the commercial arsenal it needs to raise its tiny $5.5 million valuation over the short to midterm.

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