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Nelderand

09/01/06 5:21 PM

#10793 RE: stephQB #10792

stephQB........

"Nelderand, re: discounting...

I was taught that the market "discounts" expected future cashflows to their present value, which forms the basis of the current market cap, and thus share price."

SQB....That is what I was suggesting, I think. If AMEP proves capable of drilling the first set of wells to good production, the market would start to "discount" other wells that they will drill, and the production/ cash flow that further wells would likely provide.

Thanks for stating that in a better way.

GR