AUJ are due to reach target depth early this week. Oil and gas shows could be announced anyday now and are highly likely. The main worry for this well is to contain the blast as other operators have had gas blowouts in the past! Hitting hydrocarbons is a given imo.
- AUJ are drilling at silverwood with an estimated 7.4mmbbls plus 13bcf potential!
- The prospect lies beneath a producing well, North Edna Field, which was first discovered in 1954. This has produced approx 7 MILLION barrels of oil!
- They are also situated between two other successful oil finds which had more gas then expected!
- Their operating partner is Pass Petroleum who was also the same operator for VIL/GGP's Fausse Point drill (Let's hope AUJ experiences a VIL type SP run). Pass Petroleum also just recently had success again in Louisianna with their drill for GGE.
- They have 8 million in the bank
- Various broker recommendations including John Randwicki of state one stocks broking which was covered in The Bull Newlsetter
- Silverwood has already produced two gas blowouts in previous drillings (1982 and 2008), increasing the likelihood of a successful program
Risk/reward - Cash and liquid investment backing per share is 15c. Which presents an unbelievable potential reward for minimal risk.
Good chance to get in before the hydrocarbons shows and subsequent buying frenzy.
All the best holders.
AUJ Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
