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American Patriot Oil & Gas (ASX: AOW)

American Patriot Oil & Gas (ASX: AOW) is a US onshore oil player that has recently revised its strategy and is now no longer looking for a takeover offer, but in fact has become the acquirer.

AOW is seizing opportunities to collect up a swag of distressed onshore US oil producing assets following recent oil price malaise, on the premise that these assets are strong and cash flow positive now, and as the oil price rebounds, will become even more so. 

AOW is set to complete its first acquisition of assets, which a potential value of US$153 million (AU$198M), in an all-stock transaction, escrowed for 18 months.

The Westworld Prospect is cash flow positive at current oil prices, with production expected to ramp up from the current 90 barrels of oil per day to 2000 per day by the end of 2018.

AOW, which has been close to being acquired several times itself, is now on an aggressive path to expand its reserve/resource base, drive efficiencies and build out its assets by restarting production at shut wells.

Westworld is the ideal start, and even with a US$45 oi price, is in line to generate US$90M in revenues from its existing reserve base…

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.

Through its acquisition strategy, AOW’s long term goal is to build a significant producing business reaching 5000 BOPD by 2019.

Westworld is just the beginning.

 

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Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

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