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Riedel Research Announces Investment Opinion: Riedel Research Initiates Research Coverage on American Sands Energy Corp. With Target Price of $1.92

June 10, 2014



NEW YORK--(BUSINESS WIRE)-- Riedel Research, a leading independent equity research firm focused on companies in Global Emerging Markets, has initiated coverage on American Sands Energy Corp. (OTCBB:AMSE), an oil sands exploration and development company operating in Utah.

“We believe American Energy Corp. represents a unique play on unconventional oil and has met several recent milestones necessary for building future value,” said David Riedel, founder of Riedel Research. “We are initiating coverage of the company with a “buy” recommendation and a $1.92 per share price target.”

Additional investment highlights from the report include:

  • The company recently filed their mining permit application, which is an important accomplishment. We expect that the permit will be issued later this year and investors will reward this important milestone with a higher valuation.
  • After permitting, AMSE will raise capital to go into production with a 5,000 barrel per day facility in Central Utah processing oil sands from leases they have acquired. The company currently has 150 mn barrels of likely reserves that they control and is confident they can add 500 mn barrels of reserves in the area.
  • The company has licensed technology from Universal Oil Recovery Corp, which has a proprietary solvent, and process that allows for a very clean, low energy process that is water-free and results in no emissions or waste products.
  • The technology has been tested on a pilot plant for the past two years and has proven to work efficiently.
  • Once up and running in 2016 the plant will be at break-even at oil prices of $45/barrel (WTI crude is currently at $101 per barrel).
  • AMSE’s process is water-free and creates no tailings or other waste that requires containment or disposal permits. This is a critical reason that we expect AMSE’s permit to be approved.
  • Management is very experienced in oil sands and in this region in particular.
  • We believe American Sands is significantly undervalued and represents a unique way to play unconventional energy sources in the US.

    For the complete 15-page report, pls. click here.

    About Riedel Research

    Riedel Research provides equity research and analysis to leading financial organizations, providing coverage of companies across the full range of market capitalizations. Experienced research professionals in each market develop company reports and analysis, as well as earnings models and projections. Founder David Riedel had been a research analyst for over 15 years with a strong focus on Emerging Markets as the Head of Thai Research and Regional Telecommunications analyst for Salomon Smith Barney. For more information, visit www.riedelresearch.com.

    About American Sands Energy Corp.

    American Sands Energy Corporation is a development stage Delaware company with primary operations in Utah. The Company has acquired rights to oil sand ore covering approximately 1,800 private acres of prime oil sand deposits in the Sunnyside area of Utah. The Company has a water-free extraction and recovery system using a licensed proprietary solvent that separates oil and other hydrocarbons from sand, dirt and other substances without creating tailing ponds and other environmental hazards. For more information, visit www.americansandsenergy.com.

    Risks to Recommendation

    Execution Risk: American Sands is a development stage company that is currently loss making. Permitting and other challenges still need to be met. We are optimistic that this high-quality and experienced management team will be successful in implementing their plan but we note that there are considerable challenges ahead. Financing Risk: The company is currently loss-making and has shareholder deficit of $13 mn. In order to implement their plan the company needs to raise approximately $75 mn. While we believe fundraising will be easier as permits and other milestones are reached, the company is dependent on the availability of external capital to complete their plan. Market Risk: The business is subject to market volatility of oil and gas prices, which could adversely impact the profitability of the company.




    Riedel Research

    David Riedel, 212-805-8124

    driedel@riedelresearch.com

    or

    American Sands Energy Corp.

    Phil Allen, 303-898-0625

    pallen@americansands.com

    Source: Riedel Research


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