the speculator buys into amadeus again

The Speculator (David Haselhurst) in today’s Bulletin magazine bought into Amadeus Energy on the strength of its recently successful exploration program in the US (Texas & Louisiana), which has undergone a “bold expansion”.

In brief, he said this:

AMU is now in the high .80s/low .90s. Haselhurst has the “expectation of seeing them at significantly above a dollar in the months ahead”.

During the last 9 months AMU drilled 20 wells and found hydrocarbons in 18 of them. That exploration budget of $6m has been upped to $21m for the next year.

At least two of the wells have ambitious targets which if achieved “should fire up the share price”. The time to target of the first well is 30-35 days, so there may not be any long waits on this one.

The second well may have as much as one million barrels of oil equivalent.

AMU’s P/E is less than 4.

Chairman is “averse” to listing new shares.

Shaw Stockbroking has a buy recommendation on AMU, with a target price of $1.40.

The magazine has hit the newsstands but has not yet been posted on The Bulletin website, so I cannot post a link yet.