drilling report due shortly, page-6

AMU is one stock where I am relatively uninterested in the short-term price movements. Come 2007 final results I find it easy to see this stock at $2 or above (unless something major on the downside happens to the price of oil & gas - which I doubt). By that time:

1) ARW share price will be supported by profit from 2 plants, at least three others in Australia close to the commissioning stage, and who knows what in the Europe & US arena. (ie. good support for AMU equity stake worth $70 million)
2) Production of own oil & gass will be (touch wood) around 1 million BOE for the year
3) the above should provide cash flow of $30 million plus

SP of $2 will be market cap around $400 million, which will easily be supported by the above.

Having held since 10.5 cents I still see good upside for this one.

MJS