That US$1.2 to US$1.8 million per annum to the bottom line sounds a lot sweeter when expressed in Aussie dollars - ie $1.7m to $2.5m per annum. And don't forget these wells typically have long lives and can be expected to drop that sort of dosh into the kitty for 20-30 years to come!
Even a modest 1 in 3 success rate from the 12-15 planned wells into the same ground would be a company making result. That would represent a further 4 to 5 successful wells and from $6.8m to $12.5m delivered to the bottom line. (A 50% success rate would see these numbers reach A$10.5m to $17.5m per annum!).
And these bottom line numbers are on top of current oil & gas profitability (probably jsut over A$4m is my guess for FY2003-04) and the A$5+m share of profits expected from each biodiesel plant.
Talk about potential for share price appreciation!
AMU Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
