more drill success = more profit & reserves

AMU's latest success with the Rash Barrett #5 well continues their phenomenal 100% success rate for their current drill program!

Drill results to date are:

RED CREEK
* Rash Barrett #5 (60% wi) - successful with 14' of net pay in good clean porous sand (just announced).
* Rash Barrett #6 (60% wi) - successful with 12' of pay zone.

RACCOON BEND
*Diemer #21 (60.5% wi) - successful, intersected 9' of pay zone (DY3) and currently being sidetracked to intersect the more productive DY1 and DY2 zones.
* Payne #44 (60.5% wi) - sucessfully intersected 60' of net pay in 3 zones in the Yegua sands - all are known pay zones elsewhere in Raccoon Bend.
* Wilson #24 (60.5% wi) - also targetting the Yegua sands, it successfully interesected 68' of net pay in 5 zones. Results indicate no oil-water contact in any of the zones and extremely good porosity and permeability - indicative of large reserves.

These 3 successes are frmo the first 3 of 5 back-to-back wells being drilled on this prospect - and part of a 10 well drill program planned before end-2004. I am expecting plenty more positive news from this bit of ground in the near future.

KNOX COUNTY
* Clont #2 (AMU 80% working interest) - has reached target depth and currently logging results.


Still to come too before the end of the year are a couple of deep gas wells in Lavacca County, where AMU has already had a couple of very profitable successes. Their last 2 successful wells are, combined, expected to deliver between US$1.2 to US$1.8million per annum to the company's bottom line. The first 2 will be:
* Dyczynski #1 (25% wi) - scheduled to spud 10 November, and targetting the Midcox formation at 11300'.
* Butschek #1 (25% wi) - deep gas play, targetting the Midcox formation at 9600'.
(With another dozen or so to be drilled thereafter).

And down the track, shareholders can look forward to some company-making potential from the exciting South Gross Tete deep gas (and oil) well in Iberville Parish. Have a look at the announcement by FAR - one of the jv partners - on the targeted reserves from this one.

Production testing is still to show how lucrative these successes are, but my view is that production, revenue, profits and reserves must surely be in for a juicy increase.