Yes that is right bigal, as I have said repeatedly my net number is after royalties, rev tax and lift cost but before overheads.
Corporate overheads have been approx $700k to $900k per quarter which I believe will come down, yes there have been one off cost re recent pref share, convertible note dealings and chasing and RBL, you can always make up numbers for one offs but they are exactly that. You only wany to know what is an ongoing cost imo.
So lets say they produce 1,000 boepd avge for 2014, thats 365,000 boe at my basic net price after the above but before overheads that is around $15.6m. Allow $4m for overheads and thats $11.6m which could fund around 17 wells.
As i look at this on a fully diluted basis, I dont care and infact am happy for all the options and con notes to be converted as I personally think it still represents value on that basis. Along with the company's strategy that is why i am here.
All IMO and DYOR
AOK Price at posting:
15.5¢ Sentiment: None Disclosure: Held
