Ann: Chairman & CEO AGM Address, page-13

You can't blame the haters, some of them have lost a lot money on this stock. Clearly AKK management has lost any crediability.

I am little suspect on the pierre formation. imcremental o&g had developed an adjacent field (22000 acres) over number of years but using long horizontals. They did not continue development citing needing higher oil price. AKK slides ripped that information from IOG's website. I am mean for the 2nd oldest accreage producing only 15m bbl.. Sounds like the pierre formation is not that good at all.

The fact is the pog will capped below $70 for the foreseeable future and Opec can play games with attempting to cut production, but the fact is they are no longer the swing producer.

This in opinion AKK last roll of the dice, if they cant make this asset work its pretty much bye byes, hence the stock beong these levels.

AKK premise is that using cheap deviated vertical wells can make the well development plan viable at $45/bbl with the IRR over 100% from single well economics should give them decent recycle ratio for 10 yr well development plan. And the g&a $500k is low against its peers. In my opinion hyperbolic decline curve seems ok, but time will tell with these initial 3 wells whether will validate the single well economics. The question about royalty calvulation, well post tax NPV it should be in the OPEX. Perhaps AKK is using pretax, but then again i am not familiar with US fiscal regime.