re: Ann: Kansas - Pratt No. 1 Well - Good Oil...
I've been pretty happy to average down at these prices after seeing the quarterly. Seems that they have several buns in the oven which are just about baked but the public has yet to see them or taste them. They smell good though!
I'd find it hard to imagine they cant double their production to 350+ over this quater buy just completiing the wells / programs they have already drilled.
I'm impressed with the no fuss aquisition of further acres around Tonkawa and Kansas. Also with 4 leases on the go, (Kay, Tonkawa, Cooper, Ellsworth), risk is better managed. Progress will hopefully be more steady even if there are some snags on the way.
On the negative side: - Weather could slow progress (-14 degrees today) - Some determined sellers out there - Spectre of a capital raise continues to spook people. I don't think that its a certainty, and if it happens I don't think it will be for the full $12-15M. I believe that number is how much their program will cost. But they have a number of ways to fund the program - cash in bank, cash flow, debt, capital raising. O&G always goes slower than predicted so I also doubt they will get the program done in a 12 month time frame which also reduces capital requirements.
Good luck for 2011.
AOK Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
