Do they own an oil field as in an economic oil field ?
They have land next to a depleted oil field in their so called field they completed two wells one into the deeper Niobrara as a horizontal well and one vertical into the shallower Pierre formation , First well only did an IP of around 400 BBLs of oil equivalents a day and the Pierre apart from the initial gushing to surface we have heard nothing about it, so feel we really have to see if the pressure test/floe on the next 3 wells indicates they have a field .
The company quotes figures from Comet ridge (ASX COI) with an IP average of around 130 barrels a day as deviated drill holes into Pierre but those wells also were drilled outside of AKKs lease and ASX listed IOG since taking over had one or two drilled dusters there
Also they mention they were lucky to get the lease as previously it was a mining lease , I find that a bit hard to digest as surely that should have not been too much of a problem to overcome for others over the last 150 years that the neighboring field has been in production ,
Also after searching mining records I can only see scattered coal mining , a small lead copper mine in their lease area, it is hardly like Olympic dam .
On the plus side if the historic field does extend as a lake rather than small pockets of oil (poetic license ) West into AKK's lease it should be far enough from the historic wells to not have been depleted.
Still like to know if Pierre energy is going to receive 50% of the production from the first 2 or 3 wells AKK are drilling as per the AKK 25/5/15 asx release which will impact AKKs forward revenue .
AKK Price at posting:
0.6¢ Sentiment: None Disclosure: Held
