New name for Amity Oil

AS it awaits impending production from its Gocerler gas field and pipeline project in Turkey, Amity Oil has changed its name from Amity Oil NL to Amity Oil Limited, and will be listed as not only an Australian gas explorer but also a producer.

In a joint venture with the Turkish Government’s Turkiye Petrolleri, Amity is set to supply gas through a 15 kilometre pipeline to an industrial region near Corlu, 120 kilometres west of Istanbul. The project also includes a gas treatment plant and condensate storage facility.

“Development of the field is extremely important to Amity’s bottom line,” Amity finance director and company secretary Eric Hughes said.

“We can gain access to markets we’ve never had before.

“The name change reflects the shift from an exploration company, with limited cash flows, to a company producing substantial cash flows within a few months.”

Letters of intent for gas sales in US dollars from July will allow Amity to recover its total Gocerler investment by the end of the year.

DJ Carmichael oil and gas specialist Max Nind said Australian investors had undervalued Amity Oil, partly because they could not get interested in a project as far away as Turkey.

“But people are also just sitting on their money,” he said.