The presentation in January said they would be spending no more than approx $500-600K (cant remember the exact number) before the RBL. Since this purchase was in January, I assume it was for this sum of money. About $800/acre sounds about right.
The latest announcement implies AOK will be leasing 2000-4000 acres this year for Snake River depending on drill rate. So further expansions after the RBL.
It was worded not to exclude other additional leasing outside Snake River. The $2.5Million in the December Quarter has not been accounted for.
The move to 2 rigs is nice. I hope its permanent. If so it implies a change from their stated aim of 2-3 wells / month. Big question is how long these pipes will take to install......
AOK Price at posting:
16.5¢ Sentiment: Buy Disclosure: Held
