American Resources of Deleware (GASS) Message Board

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Gold/Mining/Energy : American Resources of Deleware (GASS)

GASS 8.100

-0.1%

Feb 11 3:59 PM EST

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To: tony mendoza who wrote (38)	3/28/1997 12:42:00 AM
From: Ed Ajootian	of 172

Tony, GASS is broke even though it is getting huge amounts of production from its Gulf Coast wells. How can this be you ask? This is due to its huge debt load and its need for capital expenditures to keep up with Newfield's cash calls for future well development work in their ST 148 field. So unfortunately doing a stock buyback is not an option. Their bank recently opened up a separate line of credit for them to do developmental drilling with. So at least for the immediate future this company can keep growing without having to go back to the equity markets. I really think these guys want to increase shareholder value. The CEO, Rick Avare, and a couple of his buddies own about half of the company. The new well they just hit should add about $.07 per share to their annual cash flow. Put a market average 6 multiple on that and it should have pushed the stock up $.42. Instead the stock keeps tanking -- go figure!

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