Ann: Kentucky Oil Production Update, page-9

For starters Max it is once again GROSS PRODUCTION. This is a JV and AKK has 50% WI and then if its a 25% royalty interest being paid then NRI to AKK is 37.5%

What has irked me and I've said this over and over again (also to Guy) is their is absolutely no transparency. Lots of other junior ASX companies will give far more information on well specifics and if operating in multiple projects breakout the avg production, costs, revenue & operating netback.

What you see in the Qtrly is

Consolidated Statement of Cash Flows
Cash Flows related to operating activities
1.1 Receipts from product sales and related debtors -- X
1.2 Payments for -- Y
a. exploration and evaluation
b. development
c. production
d. administration

Net Operating Cash Flows X - (Ya+ Yb+Yc+Yd) and hopefully a +ve number.

How they got there might be a mystery (just like how many BOEs produced and sold and at what price).

Ever wonder what item 1.12 is on their Qtrly? Yes I know it is for "Other" and "equity distributions/transfer to the JV is what its for but why is it related to investing activities? In other words are 100% of the sales being recorded in 1.1 Receipts and in 1.2 Payments and so 100% of the operating cashflow from KY is recorded to AKK and then the later the JV is paid out as investing activity? Just asking..

And now that Pathfinder production filed, I begin to wonder if the statement from the July Qtrly of "Total daily production for the quarter was 650 BOEPD (250 BOEPD net to Austin)" does not mean the accepted add up all you production and divide by number of days in Qtr but more of an average of average of the days on production average. Its not hard to lookup the production numbers from the state websites of TX, CO and MS add them up and make the division apply the NRI and then add in the stated number for KY.

Details Max - that's where the devil is.

SP holding up well in a difficult environment though.