Hi Ozgem and SkitzoWhile I share your disappointment and...

Hi Ozgem and Skitzo

While I share your disappointment and frustration regarding the current share price, I am strongly opposed to a capital raising as the answer to the languishing share price for the following reasons:

1) the debt has already been reduced 25% over the past 3 years with a further $9m to be paid down from earnings this year.
2) AMU's bankers are perfectly comfortable with their current manageable debt level, as indicated by their recent extension of favourable terms, despite the broader climate
3) the earnings of almost 13 cents per share are not threatened by geographical threats or political instability (Texas and Kansas produce the bulk of AMU's revenue)
4) a cap raising at current depressed levels would lose them their loyal supporters, handing precious scrip to "Johnny-come-latelies", no doubt at a marked discount. Look what happened to ROC recently after its bounce back from the brink. The cap raising really eviscerated the share price, which had been clawing back lost ground. (Admittedly, ROC's debt levels were far more pressing than AMU's)

I recall similar frustrated sentiments being expressed when CVN was in the twenties just a few short months ago. The P/E ratio was similarly ridiculous - around 3 times earnings - and everyone was screaming that the end was nigh. Lo and behold, three months later it hit .87 cents.

Galling though it is to see AMU's share price where it is, I think the company is right to let the numbers do the talking. They are quietly boosting production in their long-life fields and moving nicely towards a stable 2,500 boepd. The P/E is just 2.5 at the moment and that simply cannot remain the case when the sector average is 15.

In the longer term, those earnings will either attract a predator or lift the share price. I would argue that they should save the capital raising for when the share price reflects true value - around 77 cents according to the pundits - not when earnings are paying down the debt while leaving enough over to fund a still very active exploration and production programme.

That's my two cents worth - and no doubt you were over-charged!

Regards

Gupper