we all know adjoining Florence field, just purchased,has produced around
15mill. barrels.AKK looks as though it paid around $12/barrel IGV for estimated
remaining reserves ,which is well within industry average of around 30% of
actual market commodity price[ currently around $53/bl]
I expect,given geological dynamics of adjoining field discussed,the Report on
reserves may well be in excess of 15 mill. bls.However let us assume Report
assess field at much the same ,then even assessing reserves at say $9/bl in ground
i.e say $135mill...would equate to ..even at say 50% discount...about 3c/share
So I can see why someone would want to spend $600,000 at 0.006c/share considering
what is likely to be announced.Remember the reserves figure is Bankable and
indeed will be an asset.
Cheers
AKK Price at posting:
0.6¢ Sentiment: Hold Disclosure: Held
