fantastic news, page-6

Jokie.

It depends. I have have always said that AKK's success will depend on their ability to prove that their assets are capable of producing at commercial quantities. More importantly to show that they are profitable and that they can acquire projects that are sustainable and efficient over the long-term.

AKK's cash flow does also depend on the price of commodities and as we've seen lately they have diminished quite a bit. I think a few people have forgotten that AKK's forecasts were previously based on peak gas and oil prices. We've seen oil prices fall by nearly 50% and gas isn't too far away from a 50% fall also.

I've heard that there will be a few "positive" changes within AKK and it's structure which I think is important for AKK to move forward. They include:

1) Possibly removing RET indefinitely.
2) Changing frac processes to maximise well production (instead of drilling 40 wells @ 300mcf, drill 30 wells @ 400mcf)
3) Changes within staff and cost cutting.
4) Selling inefficient projects

In terms of AKK following the market so to speak, I think for small caps in particular it is going to be extremely hard to predict how AKK will perform over the next few months. I think if China slows down then naturally the large mining companies will fall and as we saw earlier this year, the small caps will be the first to take the heat.

This market is very unpredictable at the moment but I honestly can say that if AKK gets the fundamentals right in their business module then I think that the sp will take care of itself. If you think about it, now is the perfect opportunity to be making these sort of changes so that when the market does bounce back AKK will be positioned to capitalise on it's new business module.

This is just my opinion.

tw