AKK - why the share is heading up, page-25

Hey @bruutz82,

Highly variable especially so depending on location, length, where in the cycle (e.g. exploration or development) whether fraccing or not etc. I'm sure AKK would have given a timeline somewhere in their announcements.

Keep in mind with your OPEC war on US shale, that US shale is only about 6-8% of total oil production. Somebody lost the plot if that was the sole aim of OPEC.

The laws of business are not suspended for AKK. They have to prove to investors (equity, debt, partners etc) that they can make money. And they have not done that. "Simples" says the meerkat.


Oh and while we're making corrective posts....
"AKK capital costs are very low. They currently only have 6 people employed and the CEO gets out on the well when he is not in the boardroom. Logically, corporate costs cannot be high at the moment and I believe price per barrel if kept low will define their success."

(a) People are operating costs not capital costs.
(b) Operating costs are usually measured in relation to the output - so it is $/BOE
(c) Capital investments are part if full cycle costs. Furthermore, F&D costs for single well economics are the capital costs wrt to the EUR and so also expressed in $/BOE


The above is SOP in E&P. When you make a statement - such as AKK capital costs are low - back it up with the actual numbers and we can compare to other E&P peers.

And as far as flow testing goes .... your trading exit I presume will occur from an exciting IP24 hr report. That is, has been and will continue to be "smoke". The number the industry cares about is IP30 and that relation to IP365 and capital efficiency.

I make no comment on your trading proficiency but a fundamental analysis on oil and E&P specifically is a bit like swiss cheese. You are welcome to counter that mine resembles Limburger but to be believed you'll have to provide substance.

GLTA on the flow rate.