Yesterday I posted on the super impressive results that AMU’s prolific drill program (36 to 40 wells in 2005) is delivering.
A couple of corrections to that info are needed.
First, I didn't pick up that the weekly drilling report info referring to the Butschek #1 well was under the heading 'Oil and gas appraisal'. As the release referred to Butschek #1 intersecting most of the pays evident in the successful Gerdes #1 well (which is a gas producer) I incorrectly concluded that it too was a gas well. AMU's media release (posted on its web site later in the day) made it clear, however, that it is an oil well. Just to make sure I spoke with AMU's staff in Perth last night, they confirmed it was indeed an oil producer.
This is no cause for disappointment though. With 52' of net pay, preliminary estimates suggesting the accumulation has an areal extent of 300 acres, and early views that this accumulation will support a 5-6 zone, 3-6 well Wilcox field, it still means that AMU is staring down the barrel of substantial additions to its production and (oil) reserves.
Second, I noted that the news that Wilson #26 had reached target depth; intersected 42' of net pay; and has been cased as an oil producer; was old news. In fact, I confused this well with the recent (similarly successful) Wilson #24 well - guess I got carried away in the excitement of reading the fantastic results from Byczynski #1. However, the Wilson #26 is clearly a NEW well and yet ANOTHER commercial oil well. If it is anything like Wilson #24 it could be expected to flow around 100 bopd. If so, AMU's share of that after royalties would be around 45 bopd (this alone represents a 6.4% increase on average daily Q1 production).
The AMU story just gets better and better.
AMU Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
