ORLANDO, Fla., Jan. 3, 2008 (PRIME NEWSWIRE) -- RedChip Visibility, a division of RedChip Companies, Inc., announced that it has issued a research update on American Energy Group Ltd. (OTCBB:AEGG), a non-operating oil and gas company with upside from drilling activities in Pakistan.
Clay Mahaffey, CFA, RedChip Research Analyst, reported:
"In our Initiation Report dated May 15, 2007, I presented a case for an $8.00/share, 24-month target price. Since then the stock has fallen from $1.00 to a low of $0.44/share. This was due to two factors: 1) Failure to meet the assumed near-term catalyst schedule and, 2) Reaction to political turmoil in Pakistan. Unfortunately, blood is literally running in the streets in the country; but, nevertheless, this looks like a classic buying opportunity for aggressive investors."
Mr. Mahaffey continued in the report:
"The political situation is essentially irrelevant to the gas reserves, but perceptions of political risk, whether right or wrong, exist in the minds of some. In my opinion, the collapse of Pakistan and a radical Islamic take over is highly unlikely since the Army and Musharaff have all of the power and are prepared to take whatever steps are necessary to restore order; they have done it before. In addition, there is no risk that petroleum companies will be nationalized under Musharaff since, under his control, the government started to privatize the largest exploration company in Pakistan -- Oil and Gas Development Limited (OGDC) -- last year.
"Consequently, little has changed to justify changing the original estimated, ultimate value of $8.00/share made in May 2007. However, the assumed capital budget and timeline were overly optimistic. A more realistic 12-month price target is $4.00, assuming certain modest milestones are met."
To access a complimentary copy of the RedChip Visibility research update for AEGG, please visit: http://www.redchip.com/visibility/about.asp?page=vreport&reportid=82&from=01022007news.
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Disclosure
The views expressed in this report (which includes the actual rating assigned to the Company as well as the analytical substance and tone of the report) accurately reflect the personal views of the analyst(s) covering the subject securities. The compensation of the analyst who prepared this research report is based upon in part to the overall revenues and profitability of RedChip Companies, Inc. The subject security of this report is a client of the RedChip Visibility, a division of RedChip Companies. RedChip Visibility has been contracted by the firm(s) whose security is mentioned in this report, to increase investor awareness of said security to the small-cap equity community. These services may include investor conferences and digital and print distribution of investor related materials. In the purview of Section 17(b) of the Securities Act of 1933 and in the interest of full disclosure, we call the reader's attention to the fact that RedChip Companies is an investor relations firm hired by the firm(s) whose security is mentioned in this report and received a fee of $36,000 for the RedChip Visibility Research Program.