You gain the true operational status and facts not by talking to management but by reading through regulatory filings such as the CO O&GCC. What possible explanation does Aus-Tex have for not filing promptly. Don't they want their shareholders to know how their wells are performing and what's been permitted and results of D&C operations.
Mis-stating information there will get you into a lot more trouble than having a side conversation or putting out a presentation.
Maybe do some analysis there and when you have your next conversation talk about the discrepancies or the production profile for example. Talk about why the financial statements and ratio analysis don't seem to support the material contained in presentations. I mean an IRR of 14,377% does not seem "plausible" does it. Has anyway well delivered that before?
How about what happened to LOE of $3k/well/month in previous presentations to current lease operating costs are estimated to not exceed $10K a month for 12 months. The absolute cynic in me says they are right, because 3 wells @ $3K/mth = $9K/mth for past 12 months when they started drilling. But I don't think its meant to be interpreted like that.
When AKK/FPL puts out their June 30th audited financials get the explanation of the capital expenditures and lease operating costs.....
Sorry Junior you can't possibly defend that can you?
AKK Price at posting:
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