drill success reinforces appeal

What a ripper of a drilling program AMU is in the process of delivering. The list below says it all, with a 100% success rate to date:

Knox County
* Clont #2 (AMU 80% working interest) - has reached target depth and currently logging results.
Red Creek
* Rash Barrett #6 (60% wi) - successful with 12' of pay zone.
* Rash Barrett #5 (60% wi) - just spudded, at 248' on 26/10 (Texas time), target depth a shallow 2400'.
Raccoon Bend
10 wells planned before end-2004. The first 5 are being drilled back-to-back, and the first 3 of these have recently been drilled. Of these, all have intersected pay zones!
*Diemer #21 (60.5% wi) - successful, intersected 9' of pay zone (DY3) and is currently being sidetracked to intersect the more productive DY1 and DY2 zones.
* Payne #44 (60.5% wi) - sucessfully intersected 60' of net pay in 3 zones in the Yegua sands - all are know pay zones elsewhere in R. Bend.
* Wilson #24 (60.5% wi) - also targetting the Yegua sands, it successfully interesected 68' of net pay in 5 zones. Results indicate no oil-water contact in any of the zones and extremely good porosity and permeability - indicative of large reserves.
Lavacca County
Two wells to be spudded before end-2004. Another dozen or so to be drilled thereafter. The first 2 will be:
* Dyczynski #1 (25% wi) - another deep gas play to spud 10 November, targetting the Midcox formation at 11300'.
* Butschek #1 (25% wi) - deep gas play, targetting the Midcox formation at 9600'.
As a reminder, the last 2 successful deep gas wells in which AMU has a 25% share of in this area are, combined, expected to deliver between US$1.2 to $1.5million per annum to the company's bottom line. No reason to expect any less for future successes.

And down the track some company-making potential from the exciting South Gross Tete deep gas (and oil) well in Iberville Parish. Have a look at the announcement by FAR - one of the jv partners - on the targeted reserves from this one.

Production testing still to determine just how lucrative these successes will be, but the inevitable conclusion must be that production, revenue, profits and reserves are in for a hefty jump in FY2004-05.

For more detail on why I reckon this is a solid little company, search some of my earlier posts.