uptrend confirmed, page-18

Hey there,

Thought I'd share some info that was sent to me.

AKK made 316k in the Dec quarter so yes they are producing oil and selling it to local refineries. They have 2.8 mill cash as at end of January, so cash isn't a problem.

Management should begin a road show shortly, seeing various brokers around the country getting the story out to the market.

Upcoming news to expect from AKK:

The Commencement Prospect (Adams County, Mississippi USA) Aus-Tex holds a 50% WI for a 37.5% NRI Drilling Operations are expected to commence in February 2011 The operator on the project is the same Mississippi-based operator that Aus-Tex joint ventured with on the successful Armstrong oil project. This well represents the 17th well to be drilled by the operator which has the enviable record of 15 of its 16 previous wells drilled resulting in commercial discoveries of crude oil.
The well will be re-drilled to a depth of 6,650? feet and produce the Baker and Ratcliff Sands formations that were previously produced in the Serio-Calto No. 1 Armstrong formation.
Estimated recoverable reserves from this well are calculated to be between a minimum of 55,000 to 78,000 barrels of oil

The Bombing Range Oil Prospect (Vernon Parish, Louisiana USA) Aus-Tex holds a 34% WI and a 25.5 NRI Drilling operations expected to commence February 2011 The operator on this project is the same as above with good track record.
Producing formation is the (1st) Wilcox Sands and the Sparta Formation Estimated recovery of 505,000 barrels of oil

North Carizzo project in Texas - As announced to the mkt on 11th Jan 2011

Since oil production began in August 2010, the well continues to flow naturally with an average Flow Tubing Pressure of approx 100 PSI. It is now the belief of the operator that a larger hydrocarbon reservoir system has been taped into than was originally forecast.

This well continues to surprise. For an Austin Chalk well of this type to be still flowing naturally certainly tells us that we have a decent sized reservoir. Natural oil flows from your typical Austin Chalk wells generally cease after three to five weeks - we are now in month five.

While we are eager to put the well on pump to increase daily production, understandably the operator will not interrupt the natural flow and risk causing damage to the chalk formation.

"We are all delighted with the 12,000 barrels of natural flow from a well of this type and look forward to updating the market once it has been put on pump" says President of Aus-Tex Guy Goudy.