American Noble Gas (AMNI) 10-Q 2005 Q2 Quarterly report

EXHIBIT 99.1

CALCULATION OF THE MAXIMUM NOTES BALANCE AT JUNE 30, 2005
UNDER THE SENIOR SECURED NOTES FACILITY DATED JANUARY 13, 2005
(dollars in thousands)

I. Lesser of:
A. the product of:
1. the Free Cash Flow Multiple		9.0x
Multiplied by
2. Services Business Free Cash Flow	$	7,003
				$	63,027
Or
B. the product of:
x. 2.0 times		2.0x
multiplied by
y. Services Business Revenue	$	18,698
				$	37,396
II. Lesser of
1. 50% of the results of the immediately preceding clause (I)				$	18,698
Or
2. 30% of the Company’s After-tax PV10				$	11,141
III. 10% of the Company’s After-tax PV10				$	3,714
Maximum Notes Balance = (I) + (II) + (III)				$	52,251
Aggregate Notes Outstanding at Determination Date				$	30,000
Company’s After-tax PV10 as of June 30, 2005				$	37,135
Services Business Revenue {Section 2(a)(xxxx)}				$	18,698
Services Business operating income	$	5,709
Services Business depreciation and amortization expense		1,294
Less: Any net operating income from affiliates		—
(A) Services Business net operating income before interest, taxes, depreciation and amortization				$	7,003
(B) Aggregate interest paid on permitted indebtedness					280
Services Business capital expenditures	$	2,827
Less: Issuances of stock by Infinity, less costs		(9,478	)
		—
Less: Aggregate interest expense		(280	)
Services Business capital expenditures, not funded		(280	)		(280	)
Services Business Free Cash Flow {Section 2(a)(xxxix)}				$	7,003