That's right they got the calculation wrong. Your paying $33m for the business at 3 cents not $57m as stated. Personally I prefer to deduct the whole $25m that was available pre the current multi state drilling program and say that I'm paying $20m for the business. I think that's a reasonable way to look at it, particularly given all drilling showing promising results so far.
In terms of cash, they still have $12m, some posts had suggested they could be running out of cash. They have said that will fund drilling through until the end of the financial year, so next June. Currently they are producing 110 barrels which is covering operating and admin costs. Buy June they expect to exceed 500 barrels so run rate cash flow should be about $13m by then.
They will still need to raise more money if they wish to continue with accelerated drilling but I would expect it to be a higher share price following some positive end results. Well I hope it will be anyway.
AKK Price at posting:
2.9¢ Sentiment: Buy Disclosure: Held
