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Amadeus diversifies

WHILE other resources companies are reinventing themselves in new industries to sweeten the bottom line for investors, Amadeus Petroleum is diversifying just a little into applied technology, energy-related biotechnology processes and renewable energy.

But don’t expect the company to concede this.

The Perth-based oil explorer with multiple Texan assets has bought two software systems with marketing rights in the past three years, each intended to streamline Amadeus’ own daily activities and hence boost the company’s market price.

Amadeus executive finance director Anthony Short said this month’s acquisition of remote data access technology, through a strategic alliance with US technology giant Honeywell, underscored the ability of the alliance to function efficiently.

But while Mr Short maintained the prime purpose of the alliance, ratified in January, was to evaluate and fast-track the development of energy technologies and projects, he would not entertain the notion of “diversification”.

This first venture merely highlighted the ability of the alliance to move quickly on projects and allowed Amadeus to monitor, store, control and manipulate oil production from its 150 wells, Mr Short said.

But Amadeus has also bought the Australasian marketing and distribution rights for OGSYS accounting software designed for the oil and gas industries.

Since forming the alliance with Honeywell, Amadeus has also agreed with Texan methane producer Pacific Natural Energy to swap renewable fuel processes technology.

The Honeywell alliance is also looking at two biotechnology processes in renewable energy projects and has held discussions with local universities.

The speed with which Amadeus has moved to shore up the Honeywell alliance, which specifies commercialising production and control systems, energy transmission and renewable energy projects, certainly hints at diversification. But don’t expect wholesale change. “Buying into smart technology is just a sensible extension,” Mr Short said.

The line concurs with managing director Geoffrey Towner’s claim that while Amadeus viewed itself as a player in the total energy business, its core business was US oil production.

This is probably why Amadeus announced last week it would acquire a 20 per cent working stake in a Louisiana oil exploration project and was negotiating another.

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06/11/14
$70k Bought
05/11/12
$40k Bought
02/11/12
$40k Bought
Total value as at the date of the transaction
Source: Morningstar

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