Ann: Sixth Eagle Ford Well Spud, page-23

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gonegassed

13,783 Posts.

03/10/14

12:02

Post #: 14070731
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Originally posted by cmonaussie ↑

Gassin, this is not advice...I can only say that IMO that AKK appears to be undervalued at present. That doesn't mean I am accumulating more as I have a full basket of resources stocks and don't wish to acquire anymore. It does mean however I would not be a seller at 1.7 (at 2.7 possibly)

Leaving Pathfinder aside (i.e. 0) and including the carried wells my NRI production yields around 300 Boepd We can make all kinds of multiple valuations, happy to use the $100K per flowing boe/d which puts up $30M of value alone. The one Pathfinder well when put back online could push that to 450 Boepd and above.

There are additional reserves and PUDs to be added from the new wells drilled. Our present 1P Reserves and a 1.8 cps SP has us at about $21 multiple.

Those baseline valuations tell me this stock has room to move on the upside. I was in the camp of "so what when debt facility is done - that doesn't re-rate stock - rerating comes when the deployed capital earns you a return" - so I'm pleased AKK has access to funds (but I will want to know more about it).

Net net - you could put your hard earned into riskier stocks than AKK in this end of the market.

I also think a once AKK is cash flow positive - such as I believe will occur in the Qtr we just started - will have effect on investment mentality. Of course POO could make that challenging at present.

Long answer - but I continue to see value here.

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thanks Comon.. for your evaluation explanation + opinion .

much appreciated

i still like akk too ... so ill buy more if it dips lower ..

AKK Price at posting: 1.8¢ Sentiment: Buy Disclosure: Held
3 Upvote

0 Great analysis

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Ann: Sixth Eagle Ford Well Spud, page-23

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