American Petro-Hunter Inc. (OTC:AAPH) announced progress at the “North Oklahoma Oil Project” 
where they drilled the No. 1 Well. In the press release, the company reports that the main objective intersected 38 feet of potential pay.
And with only this one development AAPH already aims to become an intermediate level oil and gas producer within 12 months. In our opinion that’s rather doubtful.
When analyzing the chart, we can see that the AAPH stocks have made frequent ups and downs during the last few months. The stock’s activity though was not because of their developments but because of the paid stock promotion campaigns. The last of these run ups were driven by $25,000 compensation.
Their fillings say that on April 21, 2010, American Petro-Hunter, Inc. entered into an operating agreement with Bay Petroleum Corp. to participate in the drilling for oil in Oklahoma. After doing a research, we found no information about the Bay Petroleum Corp. which makes this company’s existence quite doubtful in the first place.
AAPH’s operations for the years 2008 and 2007 resulted in losses, and the dilution rate for the last year was approximately 28%. The filings point out they have issued warrants that will expire in the years ending 31 December 2010 and 2011, which suggests more dilution is to come. AAPH has no sufficient working capital to make further investments, which makes its $24 million market cap rather questionable. Currently the company retains limited operations, directed at evaluating potential acquisition targets and revenue-generating opportunities.
At this point there are no assurances that American Petro-Hunter Inc. will be able to raise the required working capital. Following these facts and talking about a company with no employees, what kind of earnings we could expect? We can easily conclude this is accompanied by a significant risk and uncertainties.
