so what is the potential

I believe this company is on the road to fame and fortune. It strikes me they now have some very good people in place in the US oil/gas sector, and they are investing a decent proportion of their free cash flow (which is currently around $10m/quarter according to the recent ABN Amro Research Report) into highly prospective exploration plays. If they are investing $20mUS for this calendar year, the potential return is something like $1bUS, in my view. Now, where do I get that figure from. Well, there is a table at the end of the Chairman's address as posted at the ASX on 26 October. This relates to only a portion of the drilling being undertaken, although it does also relate admittedly to the large wildcat plays. It says that 100% success might mean $16US in value to AMU or $2.9b in value, based on a multiple of 10 times future net cash flow. If you assume 30% success and add on the potential from the other programmes, I do not think $1b in value is overly wild. (That might take a little more than 12 months) The recent Hermes success is probably worth $50m, based on the Hoffer stats. Anyone else like to comment on that assertion?

They have clearly been working toward this sort of expanded and highly prospective exploration programme for years. I like what they are doing, and I hate the share price.

I have read the latest research report on the website. January report by ABN Amro. It says "Buy", but I think it understates the positioning of this company. I do not think it captures the essence of where AMU is heading. Valuations must take into account prospectivity, and they place 11cps on the exploration uplift. I do not get that number at all. That is a calulated return on their exploration programme of 100%. In other words invest $20mUS to make $40mUS. Well, they achieved the $40mUS in the first couple of weeks of January with the Hermes success, so go figure?

Another announcement there today, which highlights there go-forward position. Go for it AMU !!