I wouldn't call that downramping, although I would say 1P reserves were 5.6 MMBO (primary difference being Raccoon sale stated the estimate reserves sold being both 1P & 2P. I assume roughly half in each). Not material regardless.
Maybe an issue with AMU, and why the market does not get overly excited, is that much of what they do from a drilling perspective has been high success, but low value. This makes it difficult for the market to appreciate the fact that AMU has increased 1P reserves year in year out for as long as I can remember.
Consider that from July 07 to Feb 08 the company had the following success in drilling (with reserves yet to be disclosed / established):
* SL 328 #9 (AMU 21%): Producing at 2.4 million cubic feet plus 70 barrels of condensate per day;
* Losey Trust #3: 45 barrels of oil per day;
* Mueller #1 (AMU 24.75%): 3.0 MMCFD & 64 BCPD;
* Glibert Schindler #1 (AMU 29.7%): 0.8 MMCFD & 10 BOPD;
* Erhard #1: Successful. Production volume unknown (PVU).
* Hermes #1 (AMU 40.75%): Successful. PVU.
* Kollman #14 (AMU 85%): Successful. PVU.
* another Kollman one (AMU 85%). Successful. PVU.
* Woodley #90 (AMU 15%): Successful. PVU.
It is possible I have missed something, however with the above it is clear that the trend to increase reserves will continue. It also shows that (1) nominal 11 cps valuation put on exploration is extremely conservative, and (2) there is a high likelihood of a good volume of 2P reserves becoming 1P over time. Let's hope that Schwing #2 hits the jackpot. Or if not this then something else does.
MJS
Like we've been saying, maybe what AMU needs is to hit something big so the market notices. Let's hope
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