Ann: Funding Update, page-63

"1, Would AKK be considered a TO target due to the acreage they sit on?"

-Unlikely at current POO, although vulnerable. Small debt burdened oilers will go, or get taken out for sure, and the sweeter the ground etc. Again, all this is speculating on Saudi intent, and the OPEC meeting in a couple of weeks.

"2, As AKK have no debt what are the chances they would need to shut production to await higher prices if Oil drops below say $70? What is the break even?"

-Cmon...one for you? Would need to know affect of HK hedgeing.

"3, In your experience, would you consider a company like AKK to be a reasonable bet to ride out any storm due to the fact their are an early stage producer with little to no debt"

Depends what 'any strom' looks like. The cash call is in matching HK drill rate. The rest should be self sustaining on a status quo basis. There's an income now from gas. Timing of expansion there, N-S pipeline etc is a factor.