Somebody call for a Doctor .... better yet a Priest! "The...

Somebody call for a Doctor .... better yet a Priest!

"The Company has worked on placing the shortfall from its September 2015 Rights issue .... demand was not sufficient to meet the capital requirements of Austin's Colorado drilling program"

Read (1) - equity market effectively closed to AKK and (2) understand what the real capital requirements are!

The Dec Qtrly notes in AUD$ which I'll convert at 0.66 (cross rate) into US$
Cash of $114K .... ~ US$75K
Debt drawn of $1,745K (US$1,150K) out of a available $2,055K .... leaves $320K available .... ~US$210K

BUT BUT BUT to the best of my knowledge, the April 2015 of "Austin secures funding to drive low risk growth" ... (heard that before and again) ... was a "US$1.5M Reserves based loan"!

Haven't AKK just sold the reserves that are the collateral for this loan? That US$1.05M ... is that going straight to the bank?

Magna is chucking in US$275K now with additional US$75K if no default in 45 days.

Can't say for sure but the downside scenario is Rights Issue cash spent, EFS sale pays back bank and they have liquidity of say ~US$425K (75 cash plus 350 from Magna and assuming bank line not available and asset sale cash goes to bank). Toss in say US$150K from operations (after lifting costs) and then deduct Administration (US$200K) and one well US$5ooK.

I don't see how they can move forward the way I am reading it. Feel free to correct me as not following AKK all that closely anymore. (I did however post some very detailed production data for those 21 wells referenced .... not buying into the implied results)