I actually think it is a great long term strategy. By my back of the envelope calculation, AKK would receive approx $75000 to $100000 per month for a period of approx 4.5 years once this well is up and running. That to me is a great return for an outlay of $550000 approx.
AKK is continuing to establish itself as a very productive cash flow positive (not at the moment, but, shortly) company, with many succesfull projects.
We are all pretty excited about the Eagle Ford project (which looks to have huge potential), but, once Beach Petroleum and AKK get stuck into PEL105 we will see the real company maker.
This is shaping as an outstanding year for AKK, small projects keep the cash flow coming and once Cottee has officially come on board (27th I think for memory) we will see him turn the potential to reality.
No prediction on share price, but, I think todays levels will be laughed at.
DYOR, this is my opinion only.
AKK Price at posting:
3.7¢ Sentiment: LT Buy Disclosure: Held
