Over the next 6 months, AOK may well spend $20M on drilling alone (5 wells per month). Added to that is the increased infrastructure spend and leasing.
A mitigating factor would be conversion of options and CN. Also revenue but that probably won't rise much (may even drop) due to infrastructure delays.
It seems they are happy to fully spend what they have with the assumption of a lending facility coming online mid year to keep the wheels turning after Sept.
I'm happy with that - they are pushing as hard as they can without being silly.
Further acceleration I think would be very much contingent on funding. I like the strategy of progressive expansion of drilling and leasing. Much better than obtaining huge acreage and then sweating to HBP.
AOK Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
