Ann: Austin sells Texas Birch property for $1.5million, page-2

Translation anyone....

1. The headline number is before costs so the net to AKK is less than the sale price. Shall we be kind and say 10% was the total cost of sale ... so US$945,000

2. "Fortunately, the company only had a loan of $1.5 Million, and with $1.15M of this facility having been repaid over the last 6 months, Austin now has a balance of just $350,000 outstanding on this facility".

a. The referenced numbers must be US$ as the initial RBL facility was US$1.5M and in the Dec Qtrly is was noted that AUD$1,745,000 was drawn on a facility amount of AUD$2,055,00. Implies FX cross of AUD $0.73, making drawn amount US$1,274,000

b. Those DEC Qtrly stack up against their reported SEP Qtrly where the facility amount is AUD$2,153,000 and the drawn amount was AUD$1,583,000. Implies FX Cross of AUD $0.6967, making the drawn amount in SEP as US$1,102,000 ...  doesn't look like it was being paid down per se.  Anyway with the amount of CR going on here it certainly is possible some amounts were repaid and then subsequently redrawn.

c. Lets extrapolate from DEC where the FX to US$ has drawn amount of US$1,274,000. If I subtract the estimated 90% value of Birch sale of US$945,00 that leaves US$329,000. Close enough to the US$350,000 noted by AKK as amount remaining.

3. How many folks here remember that "any borrowings under the ANB Bank facility must be repaid by 23 April 2016".  Probably accounts for the sale at any price mentality at present.


As I had indicated in the earlier thread, these asset sales are not providing much cash to AKK's Balance Sheet, they are reducing the Debt owed on AKK's balance sheet (ok so net cash is up). Doesn't give them cash to drill a Pierre well for instance. The big question is how much will they get for Mississippi property (before 23/4/16). If they only get them $5/Bbl of PDP/PDNP they got from EFS then they are looking at gross sale of US$566K. Call it net $500K and after paying ANB the cash to AKK is about US$150K.

Gotta read these announcements forensically.

Good luck.