AMU just sold assets in Kansas for approx $60Million
The metrics were: - $15.6/bbl per 1P reserve - $12.2/bbl per 2P reserve - $100k per flowing BOPD
IF AOK were valued on this it would be worth $60-90M based on reserves but only about $25M is we assume current production to be 250BOPD. Thats a big discrepancy and a 200% gain if the gap can be closed.
The company should rerate well if production can be increased and management can get AOK noticed by brokers / instos.
It looks like they are at least focusing on these aspects given the aggressive 2011 drilling program and recent presentations / Canadian listing.
I note RFE are buying up big acres and chasing the Mississippi Lime but I'm happy that management seem to be focusing on tasks which will increase shareholder value.
Good luck for 2011.
AOK Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
