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Interesting Amity Announcement

  1. 433 Posts.
    Anyone see the Amity announcement out after 5pm.
    Talks about possible dividends..... yeah right!
    Record gas productions and future explorations.
    Hopefully this might ignite the price a bit.

    I have included the announcement below.
    Be interested to know what you all think.

    regards - pokerboy


    Amity Oil Limited today announced that gas production from its
    cornerstone Gocerler Gas Facility in Turkey's Thrace Basin achieved a
    record high of 14.4 million cubic feet per day (mmcf/d), bringing the
    average up to 11.1 mmcf/d for the first five days of November.

    Speaking at Amity's Annual General Meeting today, Chairman Richard
    Elliott said the Company was on track to complete a plant upgrade at
    Gocerler that would increase gas production capacity to 20mmcf/d.

    "We are budgeting to produce at a rate of 18mmcf/d from 1 January and
    these figures assume no reserves upgrade."

    Mr Elliott said Amity planned to drill a total of eleven wells within
    twelve months and that seismic had indicated that the chances of
    adding additional commercial reserves from this program were
    exceptional.

    Mr Elliott said Amity was now in a sufficient cash flow and reserves
    position to deliver this exploration and development program. At 10
    mmcf/d Amity's EBITDA (earnings before income tax depreciation and
    amortisation) is over $8 million on an annualised basis before any
    exploration write-offs.

    "Your Board is discussing a future dividend policy for the company
    for implementation when we judge that our cash flow is in excess of
    our requirements to support our forward program. At the moment, it is
    the Board's view that investing in our exploration program is a
    better use of our available funds than returning them to shareholders
    by way of a dividend. We believe the most immediate driver of
    shareholder wealth will be further success on our Turkish licences.
    However, this position will be constantly under review, and will be
    heavily impacted by the results of the forward program."

    Mr Elliott said Amity expected to spud the Gocerler-4 well during
    December.

    "We have several leads along the Gocerler trend and fully expect some
    of those to develop into exciting prospects. The "boundary" lead
    alone, if it develops into a prospect, could contain reserves of the
    size of Gocerler," he said.

    In reviewing the results of the recent election in Turkey, Mr
    Elliott said that Amity welcomed the stability that will result from
    a single party Government. Amity views this as a positive outcome.

    "I am confident that our experience and relationships in Turkey will
    deliver big rewards to shareholders," he said.


    R Elliott
    CHAIRMAN
 
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