AMU's weekly drill report brings a bit of post-Xmas cheer to holders.
It confirms that the shallow SGT well will spud on the 5th of Jan (US time). This drill is targeting a relatively small 3-5 million barrels. AMU’s 52% working interest would mean a success will bring in a tidy revenue flow. But its significance extends beyond this insofar as any success will be seen as a guide to the prospects of the deeper target – where 500 billion cfg is the prize.
The announcement also contained excellent news regarding the successful recompletion of Schienemann#1. Formerly producing 1500 mcfg a day, after the recompletion it is now delivering 2900 mcfgd and 120 bopd! With AMU’s 25% working interest and at current oil and gas prices, I estimate this success has moved production from a position where it was delivering an annualised operating surplus of about A$900,000 to delivering over A$2 million.
I see too that ARW is moving up - that too should put a bit of shine on the AMU share price.
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