Hartleys put out a new research note on AMU in light of the...

Hartleys put out a new research note on AMU in light of the 'unsolicited offers'

Hartleys note that these sorts of offers are not uncommon and are not always reported to market, the implication being that AMU believes that the offers are of a serious enough nature and materially different, from the current sp, to warrant disclosure.

When trying to determine an appropriate value for AMU several factors come into play. They say that the US acquisition market is still emerging from bearish conditions and in this environment little value is placed on 2P reserves or exploration upside. Obviously commodity prices and exchange rates come into play also.

They state that a value of between 25cps and 74cps for AMU assets. They go onto say that the upside price would be based on several developments that they envisage occuring over the next 18 months.

12 month target 49c

In conclusion they say that AMU has just gone thru the process of getting its act together internally and as such is in a strong position to grow the company, they also expect improved market conditions over the next 1-2 yrs.

"We believe it likely that the company could recieve a better price for its assets in the future and should not sell now"