To me it doesn't matter how much money has been spent, or on what. That's gone, went, goodbye... however the spent money does have a value in tax losses for the company assuming they make enough revenue to use them. It's also of value to any predator. The relevant matter is how much money is being earned. As AKK has no debts any income earned can be used to positive effect. While AKK may never earn more money than it spends there's also the possibility that it will. At.005c/s AKK has only to make ~$700K profit to show a return of 10%. I.E if they were to produce and sell 1000 bbls/d for a year and obtain a modest nett $10/bbl then on todays MC I think they're a reasonable punt. They recon they're profitable at $30/bbl. Will they be ???? won't they be ????? Also from what I read the depletion rate for the Pierre formation is not comparable to other shale oil deposits, but then that's a tad beyond what I use to calculate potential or real value. When I bought AKK my primary reasoning was that AKK had no debt , was selling at a ridiculous price and owned an oil field that had oil in it. By the way owning an oil field's a bit different than owning an oil well in an oil field. Time will tell. I enjoy the pros and cons this forum presents, some of which (unlike mine) I must say are very well researched and analysed.
AKK Price at posting:
0.6¢ Sentiment: Buy Disclosure: Held
