POO is over USD 50 / bbl, trending up.
Are u suggesting that their reward / risk presentation on POO is fake?
They have just raised enough cash to fast track another 3 wells.
No debt, 100 pct owned, 6 wells to be producing outa poss 380 for their filed size, 100 pct owned.
Are u suggesting they are lying to us on likely earnings ?
MC is 8 mill bucks.
According to THEIR numbers, this might well be annual earnings from a moderately increasing no of wells over time.
HOW CAN ANYONE CAN IT WITHOUT KNOWING THE FLOW RESULTS OF THE FIRST 3 ?
We will soon know.
My only gripe is that they were too lenient with freebie options attached to latest placements at 6c.
But maybe a worthwhile price to pay to fast-track the development and likely future cashflows.
Its all a calculated punt, not only on the company performance but also on the POO, which if u believe the gurus may well see 60 bucks per bbl coming soon to get US Oil Industry breathing again
Nice for you to want to look after us, but hey this game is about calculated risk with risk cash.
For a tenbagger in AKKOA from current 0.2 cps, we need an AKK sp of 2.6, or MC about 3.5 cps
That in turn would need a projected net earnings of only abt 3 mill bucks pa ....... which would provide for another 6 wells the next year ....... so sp would be priced accordingly.
That's only a modest result required.
What likely earnings 6 wells at 60 bucks/ bbl
Then 12 wells etc .........
We wont know until we hear the stabilised FLOW of the first 3
Stay tuned. I'm looking for poss tech targets 1.8, 3,2 or 5,0 cps for AKK depending on FLOW and POO for 3 or 6 wells looking out 12+ months cos market will assign sp based FUTURE projections and likely development rate and likely POO.
Imagine new ME turmoil reducing supply. hey with a Clinton victory coming up, that's more than likely for mine.
Its all a punt or insurance or leveraged play on future calls, based personal reward/risk profiles.
Try telling me the global banks inc Aussie are safe bets today.
And they certainly don't offer the upside here.
balanced arguments boys. We know the risks playing the market. And yeah, race horses are safer. But ....... serious upsided here bros iff they aint lying and the POO macros keep trending their current course.
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I'm in the OA's cos ma extreme sports player in this market ....... but with only a few percent of the portfolio of course to reflect the reward / risk
Opinions
AKK Price at posting:
0.6¢ Sentiment: Buy Disclosure: Held
