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
We believe American Sands is significantly undervalued and represents
a unique way to play unconventional energy sources in the US.
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:
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.
David Riedel, 212-805-8124
Sands Energy Corp.
Phil Allen, 303-898-0625
Source: Riedel Research