Thanks for the diverse input, everyone. I guess I fall somewhere...

Thanks for the diverse input, everyone. I guess I fall somewhere in the middle of these extremes of sentiment. On the one hand I vehemently oppose the raising of cash at such a discount - especially when existing shareholders are excluded. On the other hand, now that the raising has been announced, the share price carnage that a failed raising would generate is not to be contemplated.

I mentioned in a previous post a couple of other small companies that rebounded sharply from the lows generated by a capital raising. In my experience, the market has a funny habit of overlooking the increased number of shares on issue and secondly, institutions which often cannot invest below a certain market cap suddenly find the stock fits their investment parameters and take a stake. CVN enjoyed a rise once it crossed this investment threshold, for instance.

Personally, I wish the board had persevered with their strategy of paying down debt gradually through earnings. A rising tide (the POO and gas) would have lifted many boats and I feel sure AMU would have been one of the first to feel the wind in its sails.

However, given that this strategy has now been superseded, I very much want the capital raising to succeed - especially as debt levels do seem to have weighed on the share price and a more active exploration programme will now be possible (AMU has a pretty good record with the drill).

I fully understand the feelings of people like Kwaidan who feel that management has burned shareholders' goodwill and made some foolish decisions in the past. Nevertheless, I think we have to look beyond past grievances and the desire to exact revenge in some way. Otherwise it's a bit like sawing away at the tree branch you are sitting on - an expensive, failed capital raising benefits no one.

For that reason, I'm going to ride out the current choppy seas and look for the fairer trade-winds to come.

This company has terrific, long-life producing assets in stable jurisdictions. It has been enjoying success with the drill at Garner recently, with the prospect of more to come. With the re-opening of the shut-in wells, it should be producing over 2000 BOEPD in the next few months. It has a ridiculously low P/E ratio and earnings of 13.5 cents per share. It has ridden out the lows in the oil price and looks set to profit from the predicted upturn in gas and oil prices.

I'm not averse to clipping Peacock's tail feathers, but for the rest, I'm hoping the board gets the raising safely away. With the debt monkey off our back, I reckon the share price could spring back to where Hartleys reckons it should be: around 90 cents.

"Them's my views. If you don't like 'em, I have others..." (apologies to Groucho Marx)

Good luck all.

DYOR

Gupper