for amadeus supporters, page-6

re: thanks splain Hi jocam9

forgot to add to the last post

Another factor underpinning AMU's market cap of around A$110M is probably the hefty oil reserves it holds. Last estimate was just over 13 million barrels of 1P and 2P reserves. Despite a bit of production draw-down since then, I would imagine AMU's spate of drilling success has easily covered that, plus added a significant amount more.

My rough guess is that its reserves would now be sitting around 15 million barrels. At a conservative valuation of say US$11 a barrel (1P reserves were being sold at US$10 a barrel when oil was US$27.00) their reserves would be worth around US$165 million (A$214 @ a $0.77 exchange rate).

With no debt, AMU's net asset backing (A$1.39) from its oil reserves alone is way in excess of its current share price. This would provide considerable comfort to institutional investors I would imagine. Add a bit for gas and a bit more for the biodiesel business and, on an asset backing basis, AMU looks good value.

(I hold and am in for the long haul. Roll on Iberville Parish).