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Gold/Mining/Energy
Amalgamated Exploration Inc (AXPL)
An SI Board Since January 1997
Posts SubjectMarks Bans
117 1 0
Emcee:  DD™ Type:  Unmoderated
AXPL is a new recommendation by RedHot Stocks at the following:

redhotstocks.com

Any and all insight into this stock and its technology is greatly appreciated.

Following is a brief summary of their analysis:

THE COMPANY
-----------------------------------------------
"Amalgamated is an oil, gas, and gold exploration company with impressive
lease holdings and a newly-acquired exploration technology that makes
them
an incredible prospect for growth.

In December of 1996, just one month ago, Amalgamated completed the
acquisition of a one-man Texas based exploration firm named MSP
Technologies. MSP was acquired for 300,000 shares of AXPL stock. What
makes
a one man company worth $1.8 million dollars in stock? Good question.

THE ELECTROTELLURIC SURVEY
-----------------------------------------------
MSP's founder, Mr. John Jackson, has developed a device called the
Electrotelluric Survey that quickly and accurately detects hydrocarbons
(oil
and gas deposits) to depths of 17,000 feet. With this device, oil and
gas
companies can eliminate their greatest expense: dry holes.

The Electrotelluric Survey is a low frequency telluric instrument used
to
map hydrocarbons in the Earth's subsurface strata. The system
incorporates
digital signal processing (DSP) software and acquisition hardware. The
survey can be run either digitally or analog, or on a strip chart
recorder
for immediate field review.

MSP describes it's technology as, "The relationship between the
frequency of
the electromagnetic wave front and the depth it will penetrate a
resistive
Earth is generally accepted as the skin depth law, often referred to as
a
piecewise continuous function of depth. Formation activity, induced by
ionospheric pulsations interacting with the formation's dipole movement,
results in scalar potentials, which in turn, result in discontinuities
in an
otherwise homogeneously continuous steady state output at the surface.
The
receiver detects these extremely low level induced currents governed by
the
electrical properties of the formation and records them in terms of the
frequency tuned."

Here's our understanding of the technology: There are extremely low
frequency electromagnetic waves that pass naturally through the earth.
(These are the same waves that create the aurora borealis during certain
atmospheric conditions.) These waves develop anomalies or disturbances
as
they pass through oil and gas deposits (hydrocarbons). The
electrotelluric
survey measures these waves across a range of low frequencies and
records
the anomalies, with each frequency corresponding to a certain depth. The
measurements are output in the field through a pen recorder, or can be
stored digitally for computer signal processing. The result is a true
hard
copy with no interpretation need.

Of course Mr. Jackson applied for patents on his invention, which were
subsequently acquired by Amalgamated Explorations.

According to Mr. Jackson, the telluric survey has been around since the
1940s when the Germans used it to search for submarines. Today, the U.S.
Navy uses a similar technique to map the ocean floor. But never has
anyone
been able to identify the particular "signature" unique to hydrocarbon
deposits. The identity of this signature, in addition to the survey's
ability to scan rapidly through a frequency range (and therefore, depth
range) is what Mr. Jackson's patent application is all about.

Why has it taken since the 1940s to develop this device? Mr. Jackson
states
that, "Not until the age of the Pentium computer were there electronic
components reliable enough and sensitive enough to construct the
electrotelluric survey for hydrocarbons."

We reviewed the device during a June demonstration prior to
Amalgamated's
acquisition of MSP Technologies. The survey not only identified oil and
gas
deposits, but told how large the deposits were and at what depth they
were
located. At commercial well sites where our test team held the
production
logs, the electrotelluric survey matched with 95% accuracy the known
producing deposits.

The value of a device of this type is almost inestimable. Even with all
the
advanced geological exploration methods and 3-D seismic surveys, 9 out
of 10
wells drilled are dry or not commercially viable. Each well costs
between
$100,000 and $1 million to drill and a run of bad luck can ruin smaller
oil
companies. The electrotelluric survey could change all that.

3-D SEISMIC vs. ELECTROTELLURIC
-----------------------------------------------
The breadth and depth of potential application of electrotelluric
technology
is simply staggering. Currently, the most widely accepted subsurface
exploration technique is 3-D seismic. This method surveys subterranean
structure, allowing geologists to identify areas that display structure
of a
type that has traditionally been indicative of potential hydrocarbon
deposits. 3-D seismic DOES NOT detect the hydrocarbon deposits, only
structures that may or may not contain hydrocarbons. Drilling test holes
is
still required to accurately gauge the presence of commercial quantities
of
hydrocarbons.

The biggest problem with seismic, however, lies in the interpretation of
the
data. This type of survey sends shockwaves through the earth, either
from
huge mechanized "thumpers" that pound the ground, or from explosive
charges
placed in the earth. The vibrations that result pass through different
densities of rock and can show desirable structure where none exists.

Interpretation of the data gathered can require weeks of heavy
computer-driven calculations-even then, the interpretation is largely
subject to the skill and luck of the operator conducting the survey! Dry
holes can and do still occur, even with the best 3-D seismic operators.
Overall, 3-D seismic is an expensive, time consuming, labor intensive
process. But it's still a TEN BILLION DOLLAR BUSINESS!

Amalgamated's Electrotelluric Survey addresses all of these problems.
The
survey equipment can be carried and operated by one man. The testing
itself
takes approximately five minutes per location. There is no disruptive
pounding of the earth or underground explosions. Interpretation is not
part
of the process-the survey accurately discloses hydrocarbon deposits
while
still on the site. Varying densities of the earth do not affect the
survey,
since the device measures not vibrations but natural, passive,
extremely-low-frequency electromagnetic waves that pass through the
earth.
Off-premise number crunching is not necessary.

Finally, the electrotelluric survey is environmentally friendly. There
is no
disruption from this test except the footprints of one man.

THE INDUSTRY
-----------------------------------------------
According to the Oil Daily and other industry publications, oil and gas
stocks are on the rise. After years of shunning the industry, analysts
are
finding deep-pocket investors are returning to oil and gas, drawn by the
prospect of cheap, but potentially highly profitable, deals. Oil and gas
prices are seeing a steady upswing and the harsh winter weather should
offer
an even greater boost.

Contributing factors include an upbeat commodities market, declining oil
and
gas exploration costs, and a hunt for attractively priced investments
outside the booming stock market.

MANAGEMENT
-----------------------------------------------
One of the things we like best about this company is it's size. They
have
only five or six people on the payroll. Amalgamated appears to be an
extremely lean, efficient organization.

The President and CEO is also the company founder, Mr. Ted Murer. Mr.
Murer
graduated the Colorado School of Mines and has been an exploration
geologist
and consultant for 33 years. At one time he held leases on all of the
Cave
Gulch area of Wyoming (where Amalgamated has property to this day--See
"Properties"--Next Section) but as an individual did not have the
resources
to singlehandedly develop the area. Even so, he is generally credited
with
the discovery of Cave Gulch and he is recognized in industry circles as
being an expert on the geology of the region.

Mr. John Jackson has over 20 years experience in the oil and gas
industry
with hands-on experience in uranium, coal, and oil and gas exploration.
His
experience and practical knowledge is dwarfed only by his inventions. In
addition to the electrotelluric survey, Mr. Jackson also developed the
E.M.
tool, a cased hole passive electromagnetic logging tool used to aid in
determining the oil-water contact in oil formations.

For complete coverage of Amalgamated's management, visit their web page
at
findoil.com.

PROPERTIES
-----------------------------------------------
Amalgamated's core business is oil and gas exploration. They have 2600
acres
on the Boone Dome field, (which the electrotelluric survey predicts to
be as
large as the Cave Gulch field) and 640 acres on Cave Gulch itself.

The Cave Gulch Field: In August 1994, Ted Murer teamed with joint
venture
partner Barrett Resources and drilled the Cave Gulch Federal Unit #l
natural
gas well in Fremon County, Wyoming. As of May 22, 1995, 246 feet of 481
feet
of pay was open to production at 10.2 million cubic feet of gas per day.
The
well was selected for the "Best Of The Rockies" award for 1994 by Hart's
Oil
And Gas World Magazine. Industry estimates credit this one well with 5%
of
Wyoming's total gas production. To date, 36 wells have been drilled in
the
Cave Gulch field. Five of the wells are each producing approximately 54
MMCF
per day ($50,000 per day).

Amalgamated is also involved in gold exploration. The "Paymaster
Project" in
Esmeralda County, Nevada is home to gold and silver claims, among
others.
Amalgamated has a 40,000 acre claim in a natural basin located downhill
from
precious-metals-producing volcanic vents. Amalgamated plans to conduct a
10-hole drilling exploration program for precious metals and lithium
which
the Company believes accumulated in the bottom of the basin more than
twenty
million years ago when volcanic vents from Goldfield to Tonopah erupted.
Such volcanic eruptions have yielded some of North America's largest
gold
and silver deposits. Some fifteen or more of these deposits have
reserves in
excess of 500,000 contained troy ounces of gold and range up to 20.2
million
contained ounces.

FINANCIAL PROJECTIONS
-----------------------------------------------
We feel that the electrotelluric survey alone could yield $1 billion in
yearly revenues. There is no other technology like it and once the
industry
learns about it, it will cause a frenzy.

Regarding oil properties: According to a U.S. Bureau of Land Management
Report dated April 12, 1996, there are natural gas reserves totaling 580
Billion cubic feet in the Cave Gulch area alone. Amalgamated holds 640
acres
of this area. In addition, Amalgamated holds at least 2600 acres on
Boone
Dome, 12 miles from Cave Gulch. Judging from results obtained by
electrotelluric survey, Amalgamated expects Boone Dome to be as large or
larger than Cave Gulch. One well on Boone Dome producing $30 million in
profits per year could generate roughly $10 earnings per share. At a P/E
ratio of 10:1, those earnings result in a $100 per share price!
Amalgamated
could potentially drill several wells on Boone Dome alone. The numbers
are
staggering.

Gold property: Mr. Murer's analysis of Gold Basin can be summed up in
these
words: "If you believe in gravity, there is only one place for a billion
dollars worth of precious metals to accumulate--in this basin."

In short, we expect the near-term price of this stock to go through the
roof!

STOCK ANALYSIS
-----------------------------------------------
At RedHotStocks, we have had our eye on this company since early 1996
based
on their lease holdings alone. With the addition of the electrotelluric
survey, it's a must buy!

In addition to it's holdings and exploration technologies, Amalgamated
holds
leases jointly with Barrett Resources (NYSE: BRR) and Chevron
Corporation
(NYSE: CHV).

The company became public through a merger into a public shell in April
of
1996. There are approximately 3.2 million issued and 500,000 or so in
the
actual float. The 52 week low is $2.50, and the year high is $6.75. As
of
this writing, stock is trading between $6 and $6.50 per share.

DEBT
-----------------------------------------------
None. This company carries no long or short-term debt.

RISK
-----------------------------------------------
Considering the value of the Electrotelluric Survey Technology alone,
not to
mention the huge reserves detected on both the Cave Gulch and Boone Dome
leases and the high probability for success at the Nevada Gold Basin, we
feel that downside risk is minimal. The company is growing, attracting
attention, raising capital, and will proceed with planned exploration
and
drilling programs.

SUMMARY
-----------------------------------------------
Amalgamated has the technology to find oil deposits. They can quietly
snap
up all the best leases in undiscovered territories. Prospecting can be
accurately accomplished by one man on foot. They will drill fewer, if
any,
dry holes. They have properties that geology and electrotelluric survey
show
could be major producers. BUY!"

Special thanks to RedHotStocks for this info.

DD
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Go to reply# or date (mm/dd/yy):
ReplyMessage PreviewFromRecsPosted
117 THANKS ANYWAY FOR RESPONDING TO MY MESSAGE...APPRECIATE IT. MAI-3/5/1999
116 Negative. Gerry Gerald Underwood-3/4/1999
115 MR. UNDERWOOD DO YOU HAVE ANY INFORMATION/LITERATURE ON WARREN RESOURCES? MARIMAI-3/4/1999
114 I'm not exactly sure how two threads got going on AXPL ... But I've poKarl Zetmeir-4/7/1997
113 Hi Gary, Forgive the skepticism. Their are so many ways to get scammed I wonSidney Reilly-3/20/1997
112 if you'll notice at the bottom of the paste-job in post 106, Redhot Stocks Gary Gwynn-3/20/1997
111 rcvd from axpl ir today: ******************************************************Gary Gwynn-3/20/1997
110 Hi Don, I couldn't tell if you were saying that or them. The two exampleSidney Reilly-3/20/1997
109 BS: The entire post was taken from Redhotstocks. None of the statement was myDD™-3/20/1997
108 Don, I hope you will tolerate a little skepticism as some of your original poSidney Reilly-3/19/1997
107 Gary, I guess this latest news did it. I just couldn't stay away any longeper strandberg-3/19/1997
106 for those not getting the lastest Redhot update am pasting it below in shorteneGary Gwynn-3/18/1997
105 Gerald, I would be very happy with that. However if that is shortened, it mayS. Thomas-3/18/1997
104 Re: Long Thread Header. If the person who started this thread, Don Doney, contGerald L. Kerr-3/18/1997
103 Thanks, it was all from the news release, but now has been verified and enlargeS. Thomas-3/18/1997
102 Excellent fact digging!! & summarization...am sure all on thread really appGary Gwynn-3/17/1997
101 Nothing yet! Wont be happy with IR if I dont get at least a courtesy response, Gary Gwynn-3/17/1997
100 Per, From some of my preliminary research on Warren Resources and Petroleum DGerald Underwood-3/17/1997
99 To all, If discussion continues on AXPL as I hope it will, can we start a new S. Thomas-3/17/1997
98 Thanks for the posts. Very interesting, several new facts to research! psper strandberg-3/17/1997
97 Thanks for the info. BrandonBrandon Horne-3/17/1997
96 The gist of the news release is as follows: The March 7 meeting was attended bS. Thomas-3/17/1997
95 Per & all: For news release go to biz.yahoo.com This has very positive nS. Thomas-3/17/1997
94 Gary, I have exhausted all my sources of information trying to find one word aper strandberg-3/16/1997
93 Just a few thoughts on oil finding devices. After having worked for Western GeoWise-3/14/1997
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