My view on AKK and their current drill at edwards; minnow market cap with a ‘low risk drill’ with 2.86 billion cubic feet of gas and 1,096,000 barrels of oil. A 25% interest in this drill provides massive leverage for success for a company with only 15 mil market cap. Do the math of what this is worth to a company of this size and hence my interest.
Am I confident that these guys know what they are doing, well based on previous drill success you would have to say no. However realistically success for oil & gas exploration companies at this level is down to good acreage, risk management and a lot of luck. The company has got a good mix of high and low risk assets but has missed out on the luck so far. It will only take one good drill result to change sentiment to AKK very quickly.
Weigh up your options of Risk v Reward. And based on your comments of ‘History tells us these what to expect once this share price begins to fall.’ Then I would suggest you sell out as well.
AKK Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
