ob volume suggests big player interest

The volume of OBs traded this morning jumped from 47,000 to 3,047,000 in one hit. With a November 25 expiry just around the corner, this 3m trade smacks of a buyer picking up shares in AMU without having to push the fully paids into overdrive.

A trade of that volume (over $1.2m for the options and another $750k to convert then to FPOs) is surely indicative of a desire to take a significant stake in this company. I wonder if it was the same interest that picked up 5 million options a few weeks back in a similar off screen trade.

Even if this is a different buyer, it still suggests someone has run a ruler over Amadeus's prospects and liked what the numbers foretell.

Plenty of action and good news for AMU shareholders in the ensuing months:
* Drilling galore on Red Creek, Raccoon Bend, and Lavacca County is in the pipeline (excuse the pun);
* Production testing from their recent successes on the go at the moment and results can't be too far away (and which I expect to deliver some juicy flow rates - especially from those two 60' net pay zone intersections);
* Likely significant reserve upgrades to follow from their run of drilling successes and associated production history;
* Revenue from their two deep gas wells in Lavacca County should be pouring in and swelling their coffers given that Henry Hub gas prices have been in the realms of US$6+, $7+ and even $8+ per mmcfg;
* A potentially huge upside associated with the Iberville Parish prospect AMU has stated it will drill. (FAR in a recent ASX announcement suggested spudding on this was likely before end-2004);
* More positive news on their biodiesel business, an arm of AMU that has the potential to equal or exceed the revenue and profits generated by the oil and gas side!

All in all, AMU has plenty onthe go to keep its price on the boil and deliver some very nice Xmas and New Year cheer to its holders.