Speaking at Amity's annual general meeting last week, chairman Richard Elliott said the company was on track to complete a plant upgrade at Gocerler that would increase gas production capacity to 20mmcfd.

"We are budgeting to produce at a rate of 18mmcfd from 1 January and these figures assume no reserves upgrade," Mr Elliot said.

Mr Elliot added that modest production of 10 mmcfd from Gocerler would result in annualised earnings before interest, tax, depreciation and amortisation of more than $8 million, before exploration write-offs. Last fiscal year, Amity posted a $6.7 million loss.

Mr Elliott also said Amity plans 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 are exceptional.

Mr Elliott said Amity expects 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," Mr Elliot said. " The "boundary" lead alone, if it develops into a prospect, could contain reserves of the size of Gocerler."