Ann: AusTex Fully Funded for Long Term Development at Snake River, page-7

Great announcement!

In addition to all the obviously good stuff, I find this interesting:

The key terms of lending include:
a) Solely based on 3rd party reserve engineering No lender involvement in assumption setting.
b) 1.3x Proved Developed Reserve PV 10 coverage

To me this means if they find property with a reserve assessment, then they are essentially pre-approved for lending at 1.3 coverage. This will allow them to snap up properties without a much fuss. They currently have $30M (cash and credit) to get started and certainly don't need all that to drill 4-6 wells per month.

Perhaps the oil price fall has been a good thing for AOK. Buy your staw hats in winter.....