1P reserves = 90% confidence of oil in ground that can be extracted in a commercially viable manner. Once they cross this threshold, they get the reserve allocation.
However some reserves are a lot more profitable than others. AOK has good margins so gets a higher NPV per BOE.
Akap:
A RBL facility of even $20M would really set up the company. They could double their acres and rig count. Along with the almost 1000BOEPD production rate, they would effectively be twice the company they were a year ago. Surely SP must follow...
AOK Price at posting:
13.5¢ Sentiment: Buy Disclosure: Held
