AYO unknown

i've been thinking

  1. 3,353 Posts.
    AYO, which most of the time is in our faces, is just having a little activity breather at present and it has given me a chance to reflect on what has been happening with them.

    No wells are going down at present, so I was looking back at the previous qrtly report and also latest gas sales report. All of the current Turkey exploration and devpt is being funded out of cashflow (which at the time was 12mcf a day). Well those gas sales were last reported at 15mcf+ a day and climbing to 20mcf a day shortly. That will eventually lead to quite a boost in cashflow and it keeps the TPOA joint venture self funding and prob moving into a cash positive position shortly, even after all the costs being incurred.

    Also, I am getting more comfortable with their equity structure. No placements for ages, just let the options thing do their trick. They still have $13-14M of cash just sitting 'doon at bank'. If they keep their share price above $1.10, then the $1 2004 options also finish in the money, although this can be a tricky situation as was seen with the 35 cent options last year when the brokers manipulated the prices down as low as 39 cents then offered to underwrite the options (for a fee) by contacting/writing everyone to tell them what a great share it was (interesting that!!). So they will need to watch that again.

    Also, I suspect in perhaps the next reporting period, a dividend or hint of a dividend may appear, to further help their PR image. Look what it has done for Beach's image.
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