AOK 0.00% 1.7¢ austex oil limited

Great announcement! In addition to all the obviously good stuff,...

  1. Dis
    3,746 Posts.
    Great announcement!

    In addition to all the obviously good stuff, I find this interesting:

    The key terms of lending include:
    a) Solely based on 3rd party reserve engineering No lender involvement in assumption setting.
    b) 1.3x Proved Developed Reserve PV 10 coverage

    To me this means if they find property with a reserve assessment, then they are essentially pre-approved for lending at 1.3 coverage. This will allow them to snap up properties without a much fuss. They currently have $30M (cash and credit) to get started and certainly don't need all that to drill 4-6 wells per month.

    Perhaps the oil price fall has been a good thing for AOK. Buy your staw hats in winter.....
 
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