have followed discussions here with a mixture of interest and amusement. You guys have been with this for some time and know AMU very well, has been educational. Given me many pointers for things to look at when doing my own research. Also understand that you guys are very frustrated with the sp and inability of market to ascribe fair value to what seems to me a set of quality long life assets.
Seems to me that many of the issues that are percieved to be holding back the sp are 1 by 1 being removed
ARW - written down to $o on balance sheet and no further drain on funds, so if ever it is a goer there is nothing but upside in this investment and no downside.
Lack of depth at board level - this seems to have been addressed with the addition of COO and Wyllie group additions to board
Debt - personally never saw this as an issue given asset value and excellent cashflow, has been reduced via recent placement
Addition of a substantial/Quality shareholder - Wyllie Group
Hedging - unfortunate given POO of recent times. As i understand it this was a condition imposed by banks on acquisition of the asset. Surely AMU not the only oilly to have hedges in place. Hedge reducing constantly as a % as new unhedged production comes on.
AMU now has a greater focus on gas.
sp manipulation ?? tend to agree with recent comments on this subject. seems to be ongoing to some extent
I am sure there are points i have not mentioned but what I see is a Co that has a good track record with exploration, great cashflow being reinvested into growth and what seems to me to be a concerted effort to reinvigorate its standing in the market. No doubt this will take time. Its appears that most of these changes have occured over the last 3-4 months and with POO falling and market sentiment generally as low as i have ever seen it i dont expect a turnaround tomorrow, but i am confident it will happen in next Qtr or so. At 50c or less this remains outstandingly cheap imo current MC appears to be about 1/3 of enterprise value imo the numbers here are compelling
I read the recent ABNAMRO report and thought it far too conservative especially in light of the underlying commodity price assumptions that they have used.
The sealer for me was the recent announcement of success at Wolf Cowling 2 well with 237 ft of net pay. That is AN OUTSTANDING STRIKE and i hope we will see further announcements on this in the near future AND PERHAPS SEE THE MARKET SIT UP AND PAY ATTENTION
AMU Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
