I was trolling around on google trying to find something new that would encourage me a bit as i hold solidly to aok while she is stuck in the doldrums.
I think this may have been seen before but if not..an interview with josh ypung back in february...i hear hes a bit of a ramper in some peoples eyes but i like his comments on the magic of achieving 1000 barrels per day..and thats now very soon for aok.
JY: People have focused on acreage and that's starting to change. Other companies, like Red Fork, have big acreage positions, yet the well results have been lackluster. Red Fork trades at a high valuation relative to AusTex, but there may be a rotation out of the big acreage plays. I sense a rotation into companies where well results matter more.
This is a change in the investing paradigm in the small-cap energy sector. Since late 2006, it seems like there's a different paradigm for investing in oil and gas companies every 18 months. In 2007 and early 2008, larger players were favored by investors. Then there was a shift out of the market by everyone in the 2008–2009 crash. In 2009–2010, valuations were driven by acreage. Recently, the trend has been toward valuation by production. That could help the share price of AusTex. There is a "magic number" of 1,000 bbl/d. In order for companies to be considered serious investments, they have to meet that mark. Right or wrong, many investors don't view production of less than 1,000 bbl/d as material. AusTex is well on its way to crossing that barrier—probably in H1/13. That could trigger a stock revaluation.
AOK Price at posting:
12.0¢ Sentiment: LT Buy Disclosure: Held
