AKITA Drilling Ltd T.AKT.A

Question please

[Angles]

Hi guys,

I have a quick question that concerns AKITA's future stock price and here is why.

Don't get me wrong, as I strongly believe in the value and future of AKT.A, I just wonder if anyone knows what percentage of drilling they do for natural gas vs. oil.

The reason I am asking this is because of the abnormally low spot gas price ($0.80) and future months lows as well. See link for chart below;

https://www.gasalberta.com/gas-market/market-prices

In my opinion, this could effect (slow down or delay) what you are saying about 11+ rigs working in Canada during August 2024 and beyond. Even though they will be drilling for the future capacity needs, given the extremely low pricing this could perhaps change or delay some of those plans. Thoughts??? Will this lead to a lower AKT.A stock price during the summer and early fall?

I already hold a small amount of AKT.A shares (especially in relation to many of the big bloggers here) and I am looking to increase my holdings (at good prices only) but I fear the stock price is going to come down more, instead of appreciating as most say here. At least for a little while.

Just throwing my thoughts open for discussion. I also believe longer term AKITA is going much higher and going to again pay a small dividend. (In one to three years)

All my best to other AKT.A shareholders.

Angles

[lifeisgood1010]

Good morning Angles, Akita is much more tilted to oil then gas.Recently they have converted one rig(number 26) to gas. It has been drilling for Shell for the past few months.I know they are in the process to convert another rig for gas drilling. I too, saw the AECO price below $1. Henry hub gas prices in the USA is creeping over $3 but our CDN gas is very low. I am with you 100%.I see

[pennydredful]

One  pundit  believes  solar will  replace  gas   and  in  particular  US    govt   has been  throwing   a lot  of money   at   solar    so   it   is heavely   subdized   

[Hockeyz]

Yes, aeco pricing is currently at $0.80Cdn. per gigajoule.  But, as per the bottom chart in your link, Aeco futures pricing is ramping up to $3 in January’2025 and for the next 3-4 years (at least), aeco is in the $2.50 to $4.25 range. Again, this is due to LNG Canada coming on-line and taking excess natural gas out of the country, mainly overseas. So yes, those gas production companies

[lifeisgood1010]

Once again, very good post Hockeyz. Thanks for the quality of your posts same for Blindpig. Akita rig number 26 as been retrofit to gas drilling ans as been drilling for Shell I was just ready this on BNN.this goes in the way of your thinking re nat. gas. Have a nice day. Pembina Pipeline Corp. plans to make its final investment decision for the proposed Cedar LNG floating gas-export project

[auburn2]

Only 1 of 9 directors has meaningful shareholdings. The directors are all very senior executives with plenty of money. They know more about this company than would any of us outsiders. Therefore, if the valuation is so compelling they would be buying shares thesmelves, which hasn't been happening, ever.

[pennydredful]

Its   easier  to be  a yes  man  if  you  have   no  shares   perhaps    that   is   what   the controlling     shareholder wants  

[pennydredful]

Perhaps   people  are  told  from  the  get  go  they  are  there  to meet  compliance requirements  not build   share positions  and chirp  in on operational matters. 

[Hockeyz]

Akita trades about 25,000 to 30,000 shares per day. In order to establish a meaningful position (for a wealthy person) of at least say 250,000 Akita shares, a person would have to buy every share available for at least 10 full days or half the daily shares for 20 full days. This would be very time consuming and would also move the Akita stock quite a bit, especially when people got wind that an

[auburn2]

You make it seem like just one out of those 8 directors with next to no shares would have to urgently buy 250,000+ shares. Reality is they've been at the company many years. Buying 10,000 shares here and there would add up quickly enough and show better alignment with public shareholders. It hasn't been happening.

[Hockeyz]

Hi auburn2. Actually, I never said anything about having to urgently buy 250,000 Akita shares. All I said was that to buy, say 250,000 Akita shares, would take over 20 full days (even over a number of years) to purchase using half the average daily volume, because Akita is such a thinly traded microcap stock. And wealthy people would not use their time this way. You basically said that the Akita

[auburn2]

The prospects aren't so good though. Drilling in the USA division is down sharply. Read the MD&A. Gas prices in Canada are abysmal.

[auburn2]

I've noticed shares available at $1.30 is much, much higher than is being shown. The offer is being concealed to lure in buyers.

[Hockeyz]

At the 2024 annual meeting in mid-May, Akita said they would be running at least 12 rigs in the U.S. for the 2nd half of 2024 and forward. Comparing the 10.56 average US drilling rigs Akita used in 2023 to at least 12 rigs for Q2’2024 forward, means adjusted US operating margins will increase by 13.6% (12 rigs/10.56 rigs), from $44.0M to $50.0M, an increase of $6.0M in profits just in Akita’s US

[Hockeyz]

Sorry, I had an incorrect number in my previous post. This is the corrected post:   At the 2024 annual meeting in mid-May, Akita said they would be running at least 12 rigs in the U.S. for the 2nd half of 2024 and forward. Comparing the 10.56 average US drilling rigs Akita used in 2023 to at least 12 rigs for Q2’2024 forward, means adjusted US operating margins will increase by 13.6% (12