g4 spuds - let the ramping begin, page-9

OMR - You're right about the misprint. I checked Amity's site and it is correct there. Regarding the appraisal vs exploration terms I agree that appraisal wells can and often do add more value to the company on a fundamental basis but my point was that the risk/reward is considerably different and should be considered when forming a strategy.

For example a rank exploration well may have a 1:10 chance of success of intersecting a structure that could hold as much as 100 Bcf. If the well is successful the market usually reflects a 'discovery' of 100 Bcf whereas the company can only 'book' those reserves that the well can access, lets assume 10 Bcf for this example. In an appraisal well the odds may be as high as 9:10 that the well will intersect oil or gas but it probably won't do anything to the 100 Bcf estimated total size. It will, as you state, allow the company to 'book' more reserves but again only those that can be accessed by the well - say another 10 Bcf. If the appraisal well is some distance away, the company may be able to book the reserves provided that they can demonstrate that the sands between the two wells are connected. Therefore, from a fundamental view G4 and G5 will add value but not much. From a speculative viewpoint there is little to get excited about.
IMHO the G4 and G5 wells will add to the proven reserves of the company. These will be fundamental additions to be sure but I reckon that they are already built into the share price on speculation.

My bottom line point to all this bs is that the company call a spade a spade. The fundamentals are solid and they do us all a disservice by this type of hype.

Graham - The above regurgitation is merely acedemic if the wells are targeting different zones. Do you have any references on the G4 and G5 targets?

Regards,

opt