chart looks good now, page-2

Could be the result of the market taking a position in the expectation of a bonanza result from the recent Byczynski #1 deep gas well.

That well intersected around 350' (gross) of gas filled sands, with good gas shows and plenty of pressure. Those intersections are over four times the depth of the gross formations intersected in their last two deep gas successes (and which are apparently flowing at between 1.2 and 1.8 mmcfgd).

Given that their last announcement noted that pipe was being set on the Byczynski #1 it certainly sounds like another commercial well.

On my assessment AMU is set to produce just over 310,000 barrels of oil in FY2004-05 and almost 400 mmcfg. (See my earlier post in late Dec for the basis for this). I reckon that production will generate revenue of about US$16 million for the financial year and result in a profit somewhere of just over US$8 million.

Add to this their very impressive reserves (13+m barrels of oil), their biodiesel business and the fact that their oil and gas production looks like it will keep on growing at a hefty pace, and AMU looks to be a very attractive buy even at today's price.