Wow. IMO would have been harder to come out with a worse report...

Wow. IMO would have been harder to come out with a worse report if they tried (having said that, re-lloking at the last quarter it was more of a shocker, but more understandable)! This is what I take out of it:

* The last two quarters have seen exploration expense of $2.9M and $2.2M respectively. Yet actual production has been flat at best (or down slightly in reality). This is indicating to me that this is their cost of "staying in business". As such, their comments on the polymers ... increasing production is rubbish as this has been part of their program as long as I can remember. It simply slows natural decline - at a cost - but notice the way we are never told how long any increased production lasts;

* Free cash flow after exploration, development, and production, overheads ... was $3.2M. Nice? Well, considering the company supposedly decided (I say forced) to amortise debt at $750k pm there is actually nothing left. Why? Interest for the quarter would also be around $1M so add that to 3 x $750k leaves diddly squat;

* Actual oil AND gas production decreased. Why such a big deal? (a) The previous quarter was impacted by reduced production due to low prices making them decide to cut production. Some, this was reversed for a good part of this quarter! So should have been a natural increase. (b) It highlights how quickly the actual production decreases without substantial sums of money being put into development.

I could go on a bit, but won't. I would expect AMU to fall heavily tomorrow. Hopefully for those still holding the market sees things brighter than I do.

Previously I was thinking this materially undervalued. Now not so sure.

MJS