We have all this talk about a capital raising and the share price fading, but isn?t AOK a quick fix ?
Their presentation report on 6th December 2010 says the company is cash flow positive. So I assume daily production of about 300 BOE.
Add to this the 146 BOE from Lancaster 9 announced on 23rd December 2011 and we are firmly cash flow positive.
All AOK has to do is do nothing to generate cash to fund capital works.
(And this is what they have been doing, in a sense, with the northern winter).
So is the capital raising really necessary?
Can?t they just doing nothing ?
Or sell off a small part of their 32,000 acre portfolio, or joint venture partnership?
The directors are also shareholders. Its all about wealth creation and they won?t make themselves poorer.
I await the results of Pratt 1. This one is a no brainer. Located just north of the Clark 1 which initially showed 250 BOE from 2 intersections (but had to be scaled back to 50 BOE). The Pratt 1 is a four way formation and AOK geologists rarely get their seismic data wrong.
AOK Price at posting:
10.5¢ Sentiment: None Disclosure: Not Held
