Ann: Activities Report and Appendix 5B, page-12

Cheeky,

It's a good question. In AKK's it's "only" $1.5M and secured against the company's assets - so 1P PDP Reserves. They would 1st lien so in any administration scenario they are going to get paid.

There is no chance a small bank wants either the company or the assets. Consider say that 1,500 EFS acres - even at the ridiculous low price of $1,000 the bank is covered (noting HK's first call over production from farmin wells until APO).

In bigger companies where there is a lot of money involved with hedge funds then the game is often time a play for the asset.