I was holding LNR at the time they issued their unsecured notes at 8% or thereabouts. Going forward, i believe this would be an attractive option for AOK and it would avoid more unnecessary dilution through cap raisings. Once they get over say 2500 BOEPD they may want to look at doing this.
The other option of course, is an unsecured credit facility. I believe that much more credit/capital will be needed to extract the full value of all of AOK's vast 1/P reserves heading into the 2015 calendar year.
AOK Price at posting:
29.0¢ Sentiment: Buy Disclosure: Not Held
