Spider
In my view debt is under control. The company is well within its borrowing base, the placement at 55c to Wyllie was used to pay down debt, and now management is using current market conditions to buy back shares at a lower price than the recent placement. This adds value to the remaining shares held by you, me and even Ozgem (I think, but not sure why). It is a simple case of supply and demand, right now there is not much demand without the buyback. Hopefully in better times, because of the buyback there will be less supply and the share price will perform strongly.
As for Ozgem, you should compare AMU to some of the US listed peers and see how much AMU has outperformed. Try GST, RAME,CFW, TXCO, WRES, CRED, GEOI for a start. You will also see how many of the stronger oil and gas companies are taking advantage of their share price to buy back shares. When I bought AMU it was massively undervalued compared to its US peers. It is still cheaper, but its peers have been hit a lot harder and therefore the value gap is lower.
If you want something closer to hope try BPT, AWE or any of the other small cap oil and gas companies.
Life simply ain't good at the moment. As I have said before, if you don't believe in the oil and gas price recovering you should sell and move on. I personally think AMU is well placed financially, is very cheap, has strong exploration potential supported by significant recent success, management is improving and is now focused on shareholder value. I am down on my investment, but have not held for years, and AMU has actually outperformed in my view since I invested. I remain very comfortable holding, but I am realistic and don't expect improvement until the market improves and begins to recognise the value of some undervalued small cap companies. I also expect corporate activity if AMU remains undervalued for an extended period of time. I am in no rush.
Just my opinion
Monty
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