getting the house in order

I spoke to Mitchell Wells the other day and i have to say he sounded more upbeat than in previous conversations, infact he was very positive about AMU going forward.

The last 12 months has been a tumultuous time for AMU and indeed a time of change. The company had committed to several initiatives in order to better structure the business and strengthen the balance sheet, one by one they have delivered on what they set out to do.

They have reduced their debt significantly
Completed the TNT acquisition successfully
Brought various functions inhouse
Further reduced costs
increased cashflow
increased production

Now we should begin to see the fruits of these initiatives IMO
All the above leads to greater free cashflow and i understand that the company intends to direct these $$$ towards a more aggressive drilling and development program in the near future. Another 6 wells are planned for the remainder of 2010.

Next well will be Spikes B, this will be a 're-attempt' at the waterhole creek well which had to be shut down due to extreme high pressure gas. The target is 10-15 bcf and should provide a bit of excitement.

If the Hartleys forecasts prove correct i reckon we may have turned the corner here (finally)