Currently, production is running at 4.6 million cubic feet per day however it will rise to 10 mmcfd by the end of April. Carmichael said new gas separation will be required to take production up to 20 mmcfd, which is expected by 2002.
Amity will also start $US2 million worth of 2D seismic by the end of April with an additional $US2 million worth of 3D seismic slated to begin in late May.
DJ Carmichael also recommends Australian Worldwide Exploration which is currently trading at 74-76c however Carmichael values the stock at between $1 and $1.65 with further upside if any discovery is made in the upcoming drilling in the Taranaki or Carnarvon Basin.
DJ Carmichael also believes Australian Gas Light in undervalued trading at close to its support line of $9. "A move back towards to $10 seems likely," the brokerage firm said.
Broker Salomon Smith Barney continues to favour Woodside for its superior long-term growth and Oil Search for its leverage to the oil price.
While renewable stocks such as Energy Development and Renewable Energy are having a tough time attracting investor interest, UBS Warburg has a "buy" recommendation on Pacific Hydro due to its existing projects and the company's intention to continue its drive into the Australian market.
