wolf cowling hits 237 ft net pay, page-34

Just went through the latest presentation and I'm not impressed.

From what I can see they borrowed money to buy acreage which after hedging delivers a loss?

Presumably the hedging would have been agreed on (bank requirement) with the intention of making a profit yet this was not achieved. My point is that profit wasn't just simply reduced because of the hedging it was completely wiped out. The fact that OIL price has gone up and delivered massive underlying profit is irrelevant and is an after-event. Highly misleading that the management present the earnings in such a distorted fashion, why don't they talk about the hedging in more detail?

In addition the remuneration seem to have doubled in 2008, the management here know how to look after themselves.

The big positive here is the reserves and exploration acreage held, no doubt the net value after debt is more than the current market cap. There are about 20 companies trading below their NTA i can think of right away. This value will only be unlocked when the hedging expires and management regain some credibility.

What happened to the RBC independent review announced last year?

Yes, a lot of the junior oilers got punished recently but AMU's SP slide seems to be justified to a large degree.

Good luck to holders