The market is yet to realise the significance yet but…AMU...

The market is yet to realise the significance yet but…
AMU announced the preliminary production rates for the Hoffer gas wildcat this afternoon..

Hoffer #1
Type: Gas wildcat
Location: Hoffer, Lavaca County, Texas
Working Interest: 50%
Operator: Trio Consulting & Management LLC – Wichita Falls, Texas.
Status: The Hoffer well was placed on initial production on 4 January 2007 and is currently producing at a rate of 3.8 million cubic feet of gas per day, 35 barrels of oil per day and 7 barrels of water per day, maintaining a flowing tubing pressure of 5,800 pounds per square inch, through a 10/64 inch choke.
Monitoring of flowing tubing pressure will continue and choke size will be gradually increased until the well is producing at its optimal rate.

Based on the fact that this is yet to be optimized.. (possibility of up to twice the rate once it is) then this
single producer has the potential to almost double AMU’s gas output yr on yr.

With gas prices trending higher ($US 6.75/mcft) and AMU partly hedged at $US8 this one well will
generate a sig. upswing in rev and ebit.

AMU is now getting bigger very quickly.

My opinion only.