Amity said it plans to increase gas production to over 20 mmcfd after construction of its Gocerler processing plant is completed in several weeks time. The company said delivery of equipment to upgrade the plant was largely completed.
As for its drilling program in Turkey, Amity said construction of access roads are in progress for development wells Gocerler-4 and Gocerler-5 with Gocerler-4 likely to spud in late December subject to weather and drilling contractor.
In regards to the proposed exploration well Cayirdere-1 well, Amity's JV partner TPAO said it has suspended work on the almost completed site pending resolution of a land access issue. Amity said no indication has been given of a spud date, but it is unlikely to be before January 2003.
Amity's good progress in Turkey has caught the eye of Perth brokerage house DJ Carmichaels, which recommends share investors buy the stock.
"Amity Oil will generate operating cash flow of $22.5 million during the second half of FY2003 as Turkish gas sales stabilise at 18 mmcfd," DJ Carmichael said in its weekly report. "The company has $20 million in cash and an $18 million exploration budget for CY2003. Amity trades at a discount to our valuation of $1.10."
Currently, Amity is trading at 51 cents, down 2c on yesterday's trading.