Let's put this in perspective, 60 cents * 591 million shares would imply a Market cap of $350 million, that is not including any cap raisings or options being successfully converted!
That is not going to happen for a few reasons
1) AKK will need to cap-raise along the way, increasing that MCap if somehow AKK did get to 60 cents..... some how...
2)if AKK's Eagleford and Niobrara wells are very successful (which they will have to be to get the share price into double figures.....), then that should mean the options will be exercised. Add another 400 million shares from the exercise of the options. Now that's 1 billion+ shares if the options come up trumps, giving it a Mcap of $600 million, which is.
When you include the effects of options + cap-raisings, AKK isn't at all going to reach 60 cents if it succeeds or fails.
The unrisked valuation of 23 cents is for the scenario where all things live up to their possible potential.
The 11 cent valuation is including some risks (yet still a successful evaluation you would think), and the 6.2 cent target is a more realistic 'come on AKK let's get there' target.
AKK at 60 cents would basically be implying it's eagleford acreage is valued at same rate as what the market is valuing AUT's Eagleford Sweetspot acreage, which is already valued incredibly high at the moment...
Good luck with your investment.
AKK Price at posting:
3.1¢ Sentiment: None Disclosure: Not Held
