announces another well flows oil

Amadeus has just announced their latest Red Creek well has reached target depth and will be completed as a producing well.

This latest well, a step out from a previously successful well producing in excess of 60 bopd, they estimate to be in production in 2 to 3 weeks and will deliver 60-75 bopd. Amadeus's working interest in this particular well is 60% - so a handy 1100 barrels of oil a month to add to their attributed production during this financial year. This takes their average daily production to the equivalent of around 780+bbo .

AMU always flagged that any commercial exploitation of the Red Creek prospect would probably involve drilling some 60-70 wells, of which around 80% were likely to be successful.

Although each well is likely to deliver relatively low volumes of oil, these wells are low cost and at these flow rates will pay for themselves in a couple of months. And lots of wells at these flow rates soon add up to very healthy production rates.

Not as flash as the multi-thousand barrel a day flows for some wells, but Amadeus in not in the game of risking millions on one well spectaculars. Rather the steady growth from low cost plays.

Red Creek looks set to be a lucrative endorsement of this approach, and success their will soon add up to plenty of extra dollars for a junior with a market cap of around A$8.5 million.

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