Amadeus' share price has been hovering around the A40-60c mark in the last few months, dropping from a high of almost $A1.20 in late 2006.

In early morning trade on Monday, shares in the company were trading at A61c.

Despite the current trading price, Wells believes Amadeus' business fundamentals are sound and profitable.

Revenue, oil production and gas production were higher in 2007 than in 2006. Admittedly, earnings before interest, tax and amortisation slipped significantly (from $33.5 million to $23.9 million, but with $18.1 million in EBITDA in the second half of 2007, the company has been making up lost ground.

Wells said the growing discrepancy between Amadeus share price in relation to the record high and rising oil price could be due to present negative market sentiment toward small and mid-sized stocks.

Other possible reasons could include the fact that the company had paid no dividends to date, its debt level and the impact of its holdings in struggling biofuels spinoff, Australian Renewable Fuels.

Wells said the company had made a strategic decision to reinvest in exploration and development rather than to pay dividend, and its debt levels were conservative given its reserves (about 25%). In addition, equity accounting of Australian Renewable Fuels' losses had ceased and the biofuels company's performance would have no impact on Amadeus' current or future financial performance.

Amadeus is now moving to address its share price problems by expanding and commercialising its portfolio and drilling deeper wells, he said.

"In the half year to December 2007, we invested $US16.4 million in exploration and development," he said.

The conference also heard that Amadeus is strategically reviewing its US operations to unlock shareholder value, strengthening its management, widening its skills base and attracting a more internationally diversified shareholder base.