I hold SEA.ax, RFE.ax and AOK.ax in descending size.
I have been surprised by the selloff in SEA.ax and the virtual nonstop rise of RFE.ax. Shows the value of big institutional size investors AND the rise in the visibility and credibility of the Mississippian play.
What SEA.ax and RFE.ax have is sizeable chunks of acreage in resource type plays. Sundance has stakes in the Bakken, Niobrara and just started collecting Mississippian. RFE and AOK are focused on the Mississippian.
But AOK only has 6,000 in the Northern Oklahoma area and 8000+ acres in Northwest Kansas. In order to get a market cap in excess of 100 million, market needs to be able to extrapolate the acreage X $XXXXX per acre price for producing land. AOK market cap already values current Oklahoma land at A$4,166/acre. To go a lot higher, AOK needs to prove up Oklahoma land, get some cashflow going and hope that Sandridge proves up NW Kansas so we can include that acreage in the overall market cap.
AOK Price at posting:
11.0¢ Sentiment: Hold Disclosure: Held
