Hi Cugel ... a couple of points re your message:1. "AMU hasn't...

Hi Cugel ... a couple of points re your message:

1. "AMU hasn't been able to increase its cashflow": using the March 2007 qtr, sales was USD 9.2 million and expenses USD 4.9 million. This is solid cash flow in any book, with company providing some comment as to production being below expections.

2. "obviously has no intention of paying back its large loan in anything like a reasonable timeframe": why would they when they can dig holes at such a high success rate, with the holes typically having a shortish payback period? Also, what do you define as a "reasonable" timeframe? You need to remember that the bank would have conditions around how / when payback is to take place, so provided they are within conditions there are no issues at all

3. "and doesn't have any prospects that are individually large enough to really inflame the market": true. the market is definitely no liking the slow but steady aspect at the moment.

4. "Add to that it's pumped a lot into ARFuels which has gone seriously backwards since the Fed Govt took an interest in harming biodiesels.": I would consider this the prospect that could "inflame the market" if ARW starts making good money.

From a business performance perspective I struggle to fault AMU. Drilling success rates are very good. Cash flow is healthy. The onlly thing I would prefer is that, rather than conducting a share buy-back, the company paid a dividend of, say 2 or 3 cents per year. Would be nice to see some cash in the bank given there is no doubt they can afford it.

MJS