Arthurthe nature of the fields AMU is developing in the USA are...

Arthur

the nature of the fields AMU is developing in the USA are generally mature fields where the per well flow is pretty low by the big boys' standards. But the significance of their Red Creek prospect is that is offers the prospect of a multiple well field. Although each well is relatively modest in flow (previous two RC successful wells flowing in excess of 60 bopd - I wish it was 200-300 bopd!!) the point is they have the prospect of drilling quite a few of them.

Even another half dozen successes like their first three from three would mean another 350-400 bopd. And previous AMU comments on the likely development of the Red Creek prospect flag a prospective exploitation of up to 60-70 wells.

It is easy to see how just a handful of those being successful soon adds up to a respectable flow. The point too about these wells is that they are cheap to drill and pay for themselves within a few months.

For a micro-cap company like AMU, these modest oil flows can still deliver some serious dollars to their bottom line. My view is that with the acquisition of the Morgans Bluff prospect and the recent success on their Red Creek prospect, AMU has ratcheted up a significant notch in production and profitability - the recent fall off in oil prices notwithstanding.

Not many other micro oilers are in the position to deliver the size of profits that AMU have flagged in their half yearly and look sure to deliver for full year FY2002-03.

But, your money and your choice.