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Re: AZK - Aziana

..... and then they come out with this.

http://www.asx.com.au/asxpdf/20130415/pdf/42f833ng1t3wly.pdf

The market didn't like it and neither do I. The best indication of a project is often what is next door. AZK's neighbour is producing 25-30 barrels oil per day. I could comb my greasy cousins hair and get more out of it than that.

This from the announcement.

"Independent experts Collarini & Associates of Houston have determined initial net 3P oil reserves of 4.5MMbbl’s (Million barrels) and 3P gas reserves of 4.9Bcf (Billion cubic feet). In addition significant additional exploration upside exists with Prospective Oil Resources of 4.5MMbbl’s and 50.6Bcf of gas were estimated by Collarini & Associates."

I couldn't give a hoot about the gas aspect, there is plenty of that around. There is no point quoting 4.5MMbbl's oil, when there is no knowledge of how much is recoverable.

AZK talk of using the cash flow from Sleeping Tiger to fund its other assets, any mention of an expected ETA for positive cash flow? None mentioned.

Then there is the dilution which destroys the MC:Cash ratio.

If both companies are recommending the offer to shareholders it usually means someone is getting bent over. Can't imagine the sellers bending themselves over, not that it hasn't happened in the past to be honest.

Textbook, just became reading material when on the throne. Off the watchlist.