Amadeus managing director Geoffrey Towner said the company's share market valuation appeared to take full account of only its 1P (proven) oil and gas reserves, allocating no value to 2P (proven and probable) reserves.

In addition, the market did not seem to have given any weight to Amadeus' exploration drilling and well-enhancement program.

"Over 12 months we are drilling 14 to 15 wells, of which anyone could add significantly to shareholder value," Towner said.

"With the Royal Bank of Canada we will be evaluating our 2P reserves in great detail and we expect that they will be considerably higher than last year's reserve estimates."

RBC will look at a range of options including a US listing, a possible merger, further asset acquisitions and other possibilities opportunities, according to Towner.

"We have given them a wide mandate," he said.

In particular, Amadeus is keen to win greater market recognition of its exploration potential.

"The SL 328-9 well, our first well with Kriti Exploration on the Lake Long project, Lafourche Parish, Louisiana yielded production rates of 2.4 million cubic feet and 70 barrels of condensate per day," Towner said.

Amadeus holds a 21.9% working interest in this well.

The company's most significant exploration play to date, expected to spud in early November, is the Schwing-2 well on the Gross Tete project, Louisiana.

"Amadeus has a 52 percent working interest in this well which has a target depth of some 14,500 feet and potential reserves in the region of 35 billion cubic feet of gas and 5 million barrels of oil," Towner said.

The company's appraisal and development drilling program over the past 12 months has continued to focus on the Halletsville project in Lavaca County, Texas, which has added significantly to its monthly gas production.

"The recent Hoffer well, where we have a working interest of 37.5 percent, has maintained a healthy production rate of 5.2million cubic feet per day and 110 barrels of oil per day since January 4," Towner said.

Hoffer and the SL 328-9 well in Louisiana are typical of the types of well Amadeus is targeting in its expanded drilling program in the Gulf Coast areas of south Texas and south Louisiana, according to Towner.

"Our exploration program moving forward into Louisiana, Texas and Kansas brings with it the potential for significant increases in reserves and higher production rates over the next 12 months," he said.

"Coupled with high oil prices, the strengthening of our board and management since July 1 and the engagement of the Royal Bank of Canada to assist in unlocking shareholder value, we believe the opportunities for growth are excellent."

In addition, the company said it had also reached an agreement in principle with an internationally experienced professional who has worked for a large public company in Australia and the US to be its US operations manager, located primarily in Texas, although Towner declined to name the person at this time.

"The US operations manager has a strong financial background and has been in commercial and operational aspects of oil field management in both the US and Australia," Towner said.

"His duties will include overseeing all of our operations in the US, liaising regularly with our contract operators, negotiating with joint venture parties, dealing with commercial and investment bankers and discussing with RBC the options to raise the company profile in overseas capital markets."

"We are currently framing the terms of employment and expect a December 1 starting date."