could be a big........., page-23

It is a combination of amazing and frustrating hey.

For anyone who has studied the company it is fundamentally undervalued. However, at the end of the day it is stubbornly staying that way despite K1's valiant efforts to provide support - albeit it did bounce off your base :-) Actually, at the moment I think K1 and a few others are doing more for the SP than the company itself.

For a long time now the drilling has been successful, cash flow strong, price of oil and reserves rising. What is missing from the above? One thing is shareholders. All of the above means nothing as the SP has been just as consistently falling.

Frustrating it is indeed. My thought is that the company gives another 6 months to the market. I say this primarily as they did a fairly major ramp up in drilling from around July 2007. This has without a doubt been successful, and might keep being. Six months will give time for the drilling to show through in the financials - and for more drilling to take place and show results.

However, if the market continues to ignore AMU I think the solution is simple:

1. Scale back drilling of wells by the tune of at least $10 million per annum (noting they spent $16 million in the half year this is 35% wind back - but still in excess of the previous periods);
2. Start paying a small dividend of 2 cents per year. This would take up a bit less than $4 million;
3. Share buyback of $6 million to provide a bit more support to the share price, and increase the theorectical value of outstanding shares.

I realise others might disagress with me here - however if the market continues to not value the drilling the solution is simply to do less of it and give money back to the company owners. They will still be spending a tidy $20 million or so per year on drilling which is a good number none-the-less.

OK, ready for the shower of criticism. Bring it on! lol But seriously, if things don't change by the annual report that will be the gist of my next email to Mr Towner.

MJS



Surely the company must be able to do something more tangible to lift the share price.



Or at the very least set a base price.