Think that proves my balanced point of view does it not.
Now you highlighted the following: I've added points for discussion if you like
(1) Wording upon completion of 3rd well ... then see when they commence the flow tests.
Remain confused as to what you expect especially word. Not like it is (or was) Glenn Stevens talking monetary policy.
(2) Then the results of those flow tests.
what is the benchmark for you now. A map is only useful if you know where you are now. You have to have a starting point. My starting point BTW is the P50 published in investor presentation. Present tense. Truly difficult to see any change to that based on industry wide practices. Rock related IMO
(3) The cost of those wells.
That is presently known and reported (unless it has gone up or down). This is obviously part of the full cost equation ... so lots more parts to that which you ought to be asking.
(4) The POO.
Not so relevant to AKK now. I'm sure that will cause chuckles for some. The price of oil is known. To a degree the future price is known (its called the Futures market). AKK doesn't have hedges so price protection is not an issue (most likely as their volume is to low - std contract unit is 1,000 Bbls - that's like a whole Qtr of production for AKK presently isn't it?)
(5) What AKK's plans are for future wells.
Probably joined at the hip with your next comment. If they can't fund them it doesn't much matter what the plan is ... stranded "asset"(?)
(6) How they are going to fund them.
Is that a trick question? Capital only comes from 3 sources
(a) Operating Cash Flow (@Corporate level) so that's after all costs which leaves free cash to invest into the corporation - like drilling wells;
(b) Debt - and good luck to getting that ... with no real Asset (and I use that term in the O&G meaning - i.e. 1P PDP Reserves) that option is closed (remember why AKK sold EFS & Miss ... to repay the RBL to ANB)
(c) Equity - and in this barrel I am including convertible debt in addition to ordinary shares which everyone here is familiar with as it happens frequently. I thought also @Autosime made mention of this as the method noted by GG on his phone call.
I think you have to have an opinion on all the above beforehand and then see what deltas occur to change your view.
Good luck
(ps hope one of those 4 is not I*N)
AKK Price at posting:
0.6¢ Sentiment: None Disclosure: Not Held
