balder #1-30n peak flow rates

Listened to Range Resources Inc. Conference Call Presentation on Friday and this is what they had to say about the Mississippi Lime:

"Range's Midcontinent team is focused on the liquids-rich horizontal Mississippian play in northern Oklahoma. Results continue to improve with recent wells considerably better than our first 8 horizontal wells drilled. With the new processing facility commencing operation at the end of the quarter, four wells were turned to production with two of the wells not yet reaching their peak rates. The four wells have achieved combined peak rates to date of 2,848 (2,001 net) boe per day (1,277 barrels oil, 918 barrels NGLs and 3,917 mcf gas).

Of these, the Balder #1-30N was our first well to test in excess of 1,000 barrels of oil equivalent per day. It produced at a peak 24-hour production rate of 1,363 (941 net) barrels of oil equivalent per day (782 barrels oil, 340 barrels NGLs and 1,448 mcf gas). Its peak 30-day average daily production rate was 1,258 (871 net) barrels of oil equivalent per day (665 barrels oil, 346 barrels NGLs and 1,478 mcf gas). The lateral length on this well reached a total of 3,911 feet with a 19 stage frac. This well is one of several recent tests to extend Range's previous lateral lengths from 2,000 feet plus to a 4,000 foot target. Range has an 86.3% working interest in this well.

Range now has 152,000 net acres in the horizontal Mississippian play. Early performance on wells in the 2012 drilling program with a longer lateral length indicates that the EUR's will exceed the reserves assigned to wells drilled in 2009 to 2011, and expects reserves to be in the 600 Mboe range. We are continuing to prepare field infrastructure in anticipation of ramping up activity in the second half of 2012 and into 2013."

This is very positive for AOK because Range Resources is right at our doorstep literally just metres away from the border of AOK's Snake river Project.

The peak flow rates for Balder #1-30N, AOK's first horizontal (13.76% working interest), are exceptional and increases the likelihood that AOK has core acreage in the Mississippian.

Range Resources clearly know what they are doing based on the improvements they have achieved from their drilling and fracking techniques. IMO, another Horizontal Well JV with them could be the catalyst for another re-rating of AOK's share price.