re: Ann: Garner 1 well intersects significant...
Hi Skitzo
I agree. It's a very positive announcement. I'm just wondering why management didn't wait for the results of the drill before undertaking the capital raising. The share price would have gone for a decent gallop and they might have got away the raising at a significantly higher price than 26 cents. The downside of a poor drill result would have been negligible, as AMU already trades on a very low P/E and has stable long term (and rising) production from its existing wells.
Oh well, I'm hardly going to knock an announcement that arrests the slide off the cliff. It just confirms my overall feeling though that management lacks self-belief and sells the company's assets short. 'Hold the faith, quietly do the job with the drill while paying down the debt and let the market come around gradually', would be my strategy.
Anyway, let's see whether the euphoria over these pleasing drill results has any staying power.
P.S. I note that AMU only claims a 25% interest in this well. The OGW has its interest at 50% in a recent issue. Maybe they can earn the right to a higher stake. Sorry if my earlier post mis-led anyone.
Regards
Gupper
AMU Price at posting:
30.0¢ Sentiment: Hold Disclosure: Held
