You will probably notice when the quarterly comes out that their cash burn will be substantial and management will put up an excuse why the company's productivity is not up to scratch.
The reason being AOK will need more money to buy more acrerage and sink more wells.
2 per month at about half a mil after clean up plus administration aint cheap and they are only vertical.
Drilling horizontally is where the company will get better flows but alas it costs too much.
AOK will need more money and surely the SP is way to low for a cap raising one would think but it would not surprise me if they did.
The question was asked a while ago if AOK were cash positive and conveniently that was ignored.
Going by increased revenue does not paint a true picture as some crow about on here and their revenue must have increased 15% alone on the AU$ fall alone.
Look at RFE, they just did a huge raising, have many more wells yet SP is under pressure.
I understand when one holds they feel obliged to paint a rosy picture about the company they invest in and i make allowances for some of the comments and angry retorts from the blinkered few on here buts as you say we will check out the quarterty.
AOK Price at posting:
12.0¢ Sentiment: None Disclosure: Not Held
