Most recently quarterly very much triggered a palm-smacks-forehead reaction for most holders I think. COME ON GUYS!!!!!!!
That said...
They didn't drill any new wells in established areas this quarter - develoment was 278K. I assume the Kansas wells were assigned to exploration
The 400k for development this quarter is almost certainly following the same strategy - rework / re enter the wells on the Tonkowa lease. At about $60k per well, they can workover the rest of the 10 wells behind pipe for some decent cash flow.
They have a 6 month target on the Simpson series of wells and a the ML horizontal in scheduled for the Sept Qurater so I'm unsure why people are thinking they will be done this quarter.
Range resources is drilling horizontals on the back fence - no reason why AOK can't do the same. Past production has been from the Chat and more superficial sands , not the Lime.
Agree on the more funds or more time issue with a couple of caveats - $2.5M is the cost including SWD. They already have them on the lease. - Cash in back in sufficient to lease the remainder 5000 acres for the Snake River project - April Top 20 shows the current top 8 have either maintained or increased their positions in the last 6 months
AOK Price at posting:
9.0¢ Sentiment: LT Buy Disclosure: Held
