private offering of senior notes (aut), page-14

"Finally, given the fact that eka need cash and there is a raising coming why on earth would anyone buy the stock unless they were punting a takeover."

If you are so certain, why do you not hold stock?

The fact is, landrat, EKA is still trading at below the price it was trading at last July, before the Greek Tragedy in Europe, which has nothing to do with the viability of its operations or the value of its assets. Since then:

1. MRO has taken over as operator and waxed lyrical about the potential of the EFS core area, including Sugarloaf
2. There is an accelerated drilling programme that should result in a doubling of the wells in production by the end of H1 2012
3. That programme will include testing of closer spacing and, possibly, stacked laterals. MRO has also hinted at longer laterals.
4. MRO is confident that it can produce 1,000boe flows - it said so
5. EKA has said that it is raising reserves based debt finance and AUT has already done so. There is no reason to disbelieve them

That adds up to a good reason to buy into the company at a price that represents a discount to its former price last year that was based on a far slower programme of development.

Furthermore, there is top political approval of the development of this field and recognition of its strategic importance to the US.

My stance is 'hold' because I've been buying on and off since the beginning of December and can't afford any more.