Ann: Marco Polo 1 Well Deviated Drilling Operations completed-AKK.AX, page-25

In response:

1) Oil stabilising at $40-$50 was a price by commentators before more recent talks by OPEC members - where more recent talks have indicated OPEC members + Russia would strive as a part of their common interest to lift oil prices even higher. Specifically, over the last three weeks there has been a wide push to get oil circa $50 - $55 by either a freeze or production limit agreement. Saudi Arabia with their impending privatisation of oil (Aramco) want oil to be around the circa $55 before they begin a privatisation process. Other countries have concurred with this except for Indonesia which has recently stated they are happy with $45 oil but this position is not the norm among wider oil producers. Please view most recent discussions between countries.

2) Are you purposely using older/ outdated news to suit your argument? Whilst Iran wishes to get to pre-sanction oil production numbers they are the exception and not the norm. OPEC + Russia as a conglomerate will not agree upon every country lifting their production amounts to what they wish and even the biggest oil producers are now admitting it is difficult to even produce the amount of oil BPD they previously hoped to. OPEC recognises if everyone lifts production to what they wish for it will continue the glut and the price of oil will drop further. Hence the whole reason that OPEC is currently talking about production limitation.

3) You may be worried about AKK and 'Greeks bearing gifts' - but if you look more widely at news coming from the Permian you can see how many Shale producers are now widely lowering oil production down to the circa $40-45 it is not unreasonable to believe AKK is now also hitting that ball park figure too considering they are drilling for around $500k and are doing it with how many current employees?

4) News due (if positive) will increase AKK's SP. You can be a half glass full man and say it could be bad news but you have to accept you are currently in the world of speculative micro oil production companies and not Rio Tinto or BHP. Also, a continual news flow is what moves a SP from height to height. You can wait until flows are proven but then you will be entering at 0.01c+.

5) Impending flow testing results could reasonably produce 100BPD based on what AKK's neighbor's were producing. Once again - if you cannot accept 'nearology' then wait until flow test results are announced but you will be paying for it with a 0.01c+ entry.

Second, decline rates are getting better in the permian basin and they are currently producing more oil for longer. Do a search on: 'shale oil decline curve rate' and you will see that shale oil producers have been able to recently slow decline rates in wells (this is a very positive outcome which improves the efficiency and profitability of a well). In my direct discussions with AKK they have stated they are using very conservative decline rates and they believe they could gain greater than expected efficiency. This position concurs with what is happening more widely within the shale oil industry.

6) Strengthening technicals - yes that is correct. If you are unsure learn how to use a MACD indicator and Slow Stochastic. Also, review the recent increase of liquidity of AKK and review in line with the Relative Strength Indicator.