the new reserves justify my forecast of gas production to hit 2millionmcf pa and oil at 600,000 barrel pa within 12 months
then if gas price in US reaches parity with world next 12 months to 18 months at US$15
margin on gas is say $12 x 2million $24million ayear
margin on oil say $50 x 600,000 is $30million
forward cash flow 2009 year say $50million ayear
market cap now $120million, still a long way to go! $500 million is in the bag, take a couple of years to get there
the 3P gas came in at 70BCF so plenty of scope for AMU to become a serious gas play. I'm staying on the register for a few years until they start paying a chunky dividend
Noticed Woodside has ditched its alternative energy plays and just focusing on its gas. Gas is the place to be!
AMU Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
