fall back due, page-12

re: fall gathering speed for b2 B2

Thanks for the comments.

I agree with you that it would not be a good move to squander their cash flow on the biodiesel project, and then have to go to the market when their price is languishing around current levels for more funds to get it up and running.

However, I can't see that happening. Management performance to date has been fairly conservative, well disciplined and focussed primarily on expanding US oil and gas production.

Hopefully they will continue to retain their emphasis on the main game, which is growing the business in the US.

My own view of the recent fall off is that traders were hoping for some quick results from their first three wells in the Pitchfork Prospect. And of course they have all proved dry (bummer).

However, the next set of wells on the Red Creek prospect could easily see them back with a vengeance if these prove as successful as the first two there.

Even if they don't, current daily production is running at a sustainable 750 boe, a significant jump from the average of around 460 experienced last year. That rise is essentially the reason why I like AMU. Production at these levels will continue to deliver healthy revenue even if the price of oil and gas fall back to the mid-US$20s.


All the best

S