AMU announcements today are examples of the exciting drilling...

AMU announcements today are examples of the exciting drilling program shareholders can look forward to over the remainder of 2004.

AMU announced their Knox County well (AMU 81% working interest) has reached target depth and is being logged tonight. In addition, the first of two back-to-back Red Creek wells (Rash Barrett #6: AMU 60% working interest) has spudded and is at 250' on the way to a TD of 2650'. Likewise, on Raccoon Bend the first of 5 back-to-back wells (Payne #44: AMU 60.5% working interest) is drilling ahead at 2296'.

While these type of wells deliver only modest flow rates around the 80-100 bopd, if they are successful they are very nice little earners. Shallow and cheap to drill, they typically produce for decades and so just keep on pumping those dollars into AMU's coffers.

With at least another 6 wells to spud in the next couple of months, AMU should have a stream of good news about higher production and added reserves to deliver to its shareholders over that time.

When you add to that prospect the likely positive developments in their exciting biodiesel business and more deep gas wells in Lavacca County, it is easy to see why the share price is marching north at an impressive rate.

A top little company that has exhibited phenomenal production growth in the last few years and put in place a successful program to diversify its earnings away from a reliance on oil and has moved to a balanced spread of oil, gas and biodiesel. In addition it has diversified its revenue in US$ (oil/gas production) and A$ (biodiesel).

Well done team AMU.