By my calculations we have the follwoing conversions coming: - Notes: Approx $6M by 31st May - Options: Approx $6M by 7th June - Options: Approx $6M over July-Aug.
All that in addition to the cash being held in reserve + general working capital.
Additionally RBL estimated at $20M
All up, I'd say about $50M in cash and debt to "do" something with.
Some options. 1) Keep drilling at 6 wells / month. - that would cost about $50M over 12 months - production would rise by about 2500 for a total of 4000 BOEPD (ish) - Valuation: EV of $3-400 Million
2) Aquisition (acres) - most likely RFE Dev area 9 IMHO - 12K acres for around $18M. A total of 20K acres would turn AOK into a respectable mid cap oiler. - lots of cash and inceasing revenue to drill it out
3)Aquisition (Company) - most likely RFE IMHO - script offer - $50M could get rid of their high interest loan. Less staff required. Both big savings and enough to justify offer at the right price - not sure if AOK will have the cash / revenue to hold all acres by production so some may be lost / cap raise? - still, end result would be production of 4500 BOEPD, 80K acres, amd about $70M in debt. $300-400M EV not unreasonable
AOK Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
