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In reply to: ShareScene.com on Monday 11/02/08 03:45pm

AOK were originally a 40c float, raising $20m, late last year but did not list until January so their timing was terrible. They came on the boards at about 32c and have dropped ever since before rallying recently to 20c.

 

PRINCIPAL ACTIVITY

AusTex Oil Limited (AOK) was established to acquire and redevelop oil producing

assets in the United States of America. AOK endeavors to increase the recovery

of oil from known reserves by using the Radial Jet Enhancement Technology Rig

which horizontally extends the regions of oil accessible through the existing

wells. Through its wholly owned US subsidiary International Energy Corporation

(IEC), the company currently owns six leases in north-east Oklahoma near Tulsa,

which contain 6.1 million barrels of proven oil reserves. The leases cover

approximately 1,000 acres and contain over 96 oil wells which are currently

being systematically reworked and brought back into oil production.

 

ENHANCED OIL RECOVERY: The Radial Jet Enhancement Technology uses a patented

jetting system to cut lateral holes into known oil bearing zones, thus creating

additional exposure to the sands. The tools allow for the rotation of the

jetting hose in the existing well, allowing additional laterals to be jetted at

various radials to he existing vertical well. Jetting bore holes at various

depths in the pay zone also can be achieved by setting the deflecting shoe at

elected intervals within the oil sands. The complete unit is operated by three

people and takes an average of 2 days per well to complete the enhancement and

the well is then completed and brought back into production.

 

Directors include Metgasco & ELK director Peter Power and also that scourge of small miners (wicked grin) - Trevor Sykes.

 

This is still high risk (because of the unkown success of the radial jet technology) but the REWARD for any success is now much higher (at 20c) than when they floated at 40c.

 

Directors are currently in Oklahoma on site.

 

They still have the $17m+ in the bank for the wells they are working over (similar to ELK) on the 6 leases they have acquired in Oklahoma.

 

They also have modest revenue (about $99,000 in the Mar Qtr).

 

Current shares on issue: 68.65m.

= Mkt Cap $13.7m versus CASH of >$17m (plus the oil leases) at present.

 

Shares coming out of escrow May-08: 8.28m

Shares in escrow til Jun-08: 5.275m

Shares in escrow til Sep-08: 1.4m

Shares in escrow til Jan-10: 39.1m

 

TOTAL shares: 122.7m for fully diluted Mkt Cap of $24.5m/$25m.

 

But at present there are less than 82m shares tradeable.

 

I have picked up a modest holding of 100,000 but it is high risk - as most oilers are.

 

Regards

 

Coop

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In reply to: AgentCooper on Tuesday 13/05/08 10:00am

Up 22% today....24.5c.....nice.

 

Flushed out a few sellers at 22.5/23/23.5 during the day but they were always happily soaked up by willing BUY orders.

 

I am cautiously optimistic at these levels.

 

Coop

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Thanks AC for the tip. She is looking nice. I like ELK as well, both have plenty of upside. The cash is definitely a bonus. Some good buying today. ANZ still selling their OPUS stock? Time will tell. http://www.sharescene.com/html/emoticons/wink.gif
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In reply to: iridium on Wednesday 14/05/08 09:37pm

Its hard to know about ANZ because once they drop even marginally below 5% they then cease to be a "substantial" shareholder (anyone with >5% is deemed "substantial") and they won't have to report any further changes to their holding.

 

I had a friend talk to one of the Directors today and - even though the Director would obviously say as much - they thought this one was DEFINIETLY worth buying down at this level.

 

WIth Peter Power as a Director, with a good track record at Metgasco & more recently - ELK - and also Trevor "Pierpont" Sykes on board you would have to have confidence in the integrity of the Directors if nothing else.

 

That has to be a plus and one less thing to worry about - knowing the Directors will be working for us.

 

Now...if we can get confirmation that the Radial Jet Technology is working then we could see this one appreciate quite a bit over the rest of 2008.

 

Holding on to the few I picked up at 19.75 average and will give this a "crack" for the rest of 2008. Plenty of work being done as we speak.

 

Good luck!

 

Coop

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Gday AC

had a little bit more of a read..........Interesting that of the 3.5 mil barrels of proved developed reserves, production was at 30-50 BOPD.....cant help but think that even when they do rework the wells that flow rates will still be modest... i expect it will be a low rate long life producer.....the fact that only 5% of the oil has been produced suggest it is a low quality tight formation.....do you have any idea of the flow rates expected???? .... ..certainly due to high oil prices even low production rates will be worth good money......so the timing is very good...

 

I couldnt see who in the company was on the ground in the US????? I expect that in order to grow the company successfully it is important to have someone on the ground in the US that has an intimate knowledge of the location being persued......also for such a small company they have a lot of directors, I would hope they dont get paid too much....

 

same market cap as ELK, with a fraction of the potential upside and the risk of one project...certainly dont think it is in the same league.....but I will watch with interest.

Cheers

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  • 3 weeks later...

In reply to: AgentCooper on Friday 30/05/08 01:54pm

I spoke to one of the Directors today and it seems that drilling work is progressing well on the kansas wells. Revenue will be much higher than March Quarter and overall, the company is on track with plans. It seems the Opes dramas - through a Macquarie Private client who had leveraged his stock - is "history" and there appear to be few barriers to the stock eventually creeping back to the IPO price.

 

The fellow I spoke to speculated that some clients who bought in at IPO might be tempted to cut their losses in the 35c - 40c zone and take a tax loss but he was firmly of the view that the stock (naturally - he's a director) is worth 50c+.

 

Any success with the radial jet technology will see the price soar, it seems.

 

Good people on board here: Peter Power from ELK & Metgasco fame...not to mention Petsec!. And of course...Trevor Sykes, who is obviously happy to put his name to the stock.

 

One more thing - have a look at Red Fork Energy. They are in close proximity to AOK in Oklahoma and have had some success lately that has seen their share price rise from 40c to 60c recently. Their market cap is almost identical (on a fully diluted basis).

 

Given AOK have also encountered hydrocarbons in their drilling and should release flow rates soon AND have the radial jet technology to test, it could mean further upside is on the cards once any "stale" IPO holders cut and run.

 

I continue to hold and have topped up from my original 100k purchase at 20c.

 

This isn't meant to be a ramp, but will be probably viewed as such...nevertheless, I thought I would pass on the updated info.

 

Good luck.

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