spp price. discuss, page-7

and that might be part of the problem:

1. Short Term (say 1 yr for grins)
2. Small Amount (say $10M so fees are high - figure paying back $12M minimum)
3. Punitive default conditions (lose the assets)

All going well $10M drills a well in Pathfinder and Birch. Gets further time to do a better 1P Reserves report and improved chances of decent JV and financing. However, there is still the "problem" of gas gathering/processing infrastructure in Pathfinder (can be called as oil field but lots of associated gas/NGLs without which the economics are downgraded).

All going not so well the simple requirement to payback the debt ($12M) in a year becomes almost insurmountable. Lender owns the asset - which they wouldn't want and simply roll it up to be sold. Happens all the time and with companies much larger than AKK.

Hindsight is great - but common problem is undercapitalized to start with, bit off more than they could chew (Birch & Pathfinder & Mississippi & whatever else) and gambled in the Austin Chalk drill (which hurt them). Technical gurus?

Foresight is what's needed to pull them up off the floor and back into the game.

GLTA - it's not getting any easier...