MJS,I think the problem is more fundamental, the model doesn't...

MJS,
I think the problem is more fundamental, the model doesn't work. There is no point Australian listed companies having US oil wells.

AMU had years of good cash flow into the business. All that happened is that the business burned it up with ongoing replacement drilling, admin costs and staff perks such as travel, music and racing sponsorships. The shareholders got nothing.

If you look at the other small oil companies on the ASX its the same story. Cashflow is meaningless if it never flows to the shareholders.

If they returned a dividend from oil sales revenue that would be good. To pay a dividend on profits from the sale of an oil field is wrong, it is a capital return.

If companies in Australia make a profit and pay tax the franking credit flows through to shareholders. Make a profit in the US and the Australian shareholders get no franking credit. Australians are much better off investing in companies which pay tax here.

AMU should sell the rest of the assets and do buy backs or capital returns, the game is over.

bacci