Konichi wa Tokyo JoI haven't seen Quentin Cameron's latest Oil...

Konichi wa Tokyo Jo

I haven't seen Quentin Cameron's latest Oil and Gas Bulletin, but nice to now I am not alone in identifying AMU as excellent value. If they manage to drill into a few more oil pockets with the remaining 7 or so wells they have planned before the end of June 2003 they might get a bit more interest behind them.

Is it possible to post his comments or would that breach copyright? Or maybe email to [email protected]?

The real sleeper with AMU is the biodiesel project. My understanding is that the Commonwealth Government is currently deliberating on whether it will be designated as an alternative/renewable fuel - approval in this regard would see it get favourable treatment along the lines of ethanol (either fuel rebate or production subsidy). A Commonwealth Government working group is looking at this matter and is due to report in the next month or so. Based on previous work done by Environment Australia, the Australian Greenhouse Office and the CSIRO on the environmental benefits of biodiesel relative to other renewable fuels, there is plenty of support among the beaurocrats for biodiesel. So hopefully it will get up and qualify for the support that, for example, ethanol gets. If and when that occurs it would certainly improve the economics of the Amadeus biodiesel project.

The research report done on Amadeus by Russel Langusch last year valued each biodiesel plant as being worth around 17 cents per share for AMU. Nice if that gets up eh!

In the meantime, current production increases, likely drill success and record prices for oil and gas look indicate AMU's coffers are filling up nicely.

cheers

S