next oil rush article, page-17

I must of missed this in the my rushed reading of the "nextoilrush" report.....

Mar 31'16 Qtrly has Cash at ~$164K. Proforma of Prospectus has Cash at Mar 31'16 of ~$786K with an adjustment to increase total to $1,266K (reflecting sale of Miss wells and placement cash). Overall I think the $1,266 is roughly correct as the differences would be more timing related.

Estimated outflows next Qtr of ~$1M of which ~$311K is Admin and $655K is Exploration

So this raising of GROSS $1.77M becomes Net $1.51M. But you still have not repaid Magna. Reality is only $1M is going to fund Pathfinder drilling.

Using the proforma of the Rights Issue a simple view of AKK's working capital is ~$2.26M (so just current assets - current liabilities)

If AKK is correct in the estimate of June Qtr outflows, then approx $1.25M cash remains end June. Of course the dribble of oil produced from Kentucky which has PDP Reserves of 38MBO (assume all are aware that AKK impaired the loan receivable from the JV Kentucky Exploration LLC to $0 in the HY report on the basis it may not be repaid). Call it net $50K for the Qtr?? Brings cash to $1.3M

Assume this Pierre well strikes oil. Unlikely to receive any cash from it this June Qtr.

Lets say you get lucky and avg 200 bopd for the Sep Qtr from that well. So 18,000 BO to sell. Lets be truly generous and give AKK a field level operating netback of $15/BO ... so $240K (still haven''t covered Admin as this cost not included). I think you're looking at Cash of ~$1.6M and outgoings of ~$1M again (so drilled another well in Sep). Now down to ~$600K end Sep but with 2 producing wells in Pathfinder + dribble from KY (no jokes).

The prospectus is clear in 8.2 (b). Successful completion of the Rights issue gives the company adequate capital for current expenditure commitments and short term working capital requirements. They continue with "...it is highly likely that further funding will be required to meet the medium to long term working capital costs of the company".

433M shares out now + 433M issued this RI + 215 Options + more dilutive raisings to come medium term

"...bang the price will explode ..." yep like an exploding cigar.



Anythings possible I guess. Good return on those 0.004 shares....available now!