BinBin, why exactly was this a dissapointint announcement?
Do you expect all announcements to be material overwhelmingly positive announcements?
The company is letting you know where they are up to, they are letting you know what they plan to do, they are damed if they give you a timeline and done meet it, but then they are damned if they dont give you a timeline. It is very hard to please this market, especially at the moment.
This is why in my view, it there are people out there that think if they can buy assets and take them private that take out the volatility of the markets lofty expectations and irrationality.
We would all love those three things you mentioned to be announced tomorrow, but that is just not realistic. The potential lender does not care what you want or when you want it, they will take all the time they need to decide and due their dd. The land owners also dont care what you want and when you want it, they are taking their time to get the best deal for them. Lastly on the wells, AOK are in development mode, they have to switch wells off when they are completing new wells meaning they do not get full production really for any month, hence my earlier stament that what i think you need to look at is how many wells they have in the ground. AOK say they decline to around long term production of about 40boepd (approximte) so then based on them having 17 wells producing at the moment (from their announcement today 17*40 = 680. This is completely my view and obviously things vary but you can see what i am getting at.
AOK Mar qtr production was 42,411 BOE, For the June qtr to the end of May they have already done 36,257 boe with one full month to go. That is pretty good performance if you ask me.
In my view the biggest thing against AOK at the moment is general market sentiment.
I think all i am trying to say is, lets all just be a little realistic, as if it was that easy we would all be sitting on our super yachts or islands or what every it is you dream of. Patience.
AOK Price at posting:
12.5¢ Sentiment: None Disclosure: Held
