another successful well!!

AMU does it again!

AMU today announced their latest well on their Red Creek prospect - the Rash Barret A #4 - has hit two pay zones which they expect to yield 60-80 bopd.

AMU's 60% share of that represents some 35-50 bopd. Grossed up, this well will add another 1000-1500 barrels a month or 12,000-18,000 a year. (At plus US$30 prices and at current exchange rates that is a tidy revenue increase of A$467,000-A$585,000 from this well alone). As these shallow wells are cheap to drill and bring on stream, a huge lick of those dollars will show up in the bottom line!

This is a significant chunk of money flowing into the coffers of AMU, and given these wells have 15+ year lives, that represents a hefty added NPV for the company.

Also means they are added to their 1P reserves and growing their net asset backing even more.

These last two sucesses from two wells gives a good indication of just what a great asset this Red Creek prospect is. This drilling has only just started scratching the potential of this prospect, so expect lots more oil and dollars to accrue to AMU down the track.

Lots more to come from this exciting little oiler in my view.