Appreciate your input here and generally receptive to any cautions thrown up by persons with proven track records of sound judgement.
Having had a reasonable study of the acreage and available info overnight it appears that there are wells in the region which have produced reasonable flows over significant periods. The 3 wells currently being drilled appear to be within a few hundred metres of each other at surface (confidence or stupidity?), therefore the 790ft column of oil announced on the first well should in theory be similar for the other two wells. Being that it is a gravity fed system I'm not expecting anything too spectacular in terms of flow however with the 3D data that they have they should be able to hit multiple natural fractures within the formation. Looking at historical well flows within the region IP30 flows of around 100 bbls have been regularly hit, given that they are intersecting a thicker pay zone with good data I'm optimistic that AKK will exceed those rates, 150-200bbls IP30 is I think quite a strong possibility, rates decline fairly quickly in the area to about 30-40% of IP 30 and generally seen to have a life span of about 10 years max. The targets are a little way away any wells with proven flows due to the virgin ground but the Pierre shale is reasonably well understood.
Somewhere around 80bbls/day is where I think the average well production will sit over the first year which would make a reasonably compelling ROI.
80*45*365=$1.314M p.a
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http://dnrwebmapgdev.state.co.us/mg2012app/?lat=38.333375&lon=-105.179461&scale=12000
https://www.google.com.au/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwjx4vSBv-nOAhVFjZQKHcc0DCMQFggbMAA&url=https://pubs.usgs.gov/dds/dds-069/dds-069-p/REPORTS/69_P_CH_2.pdf&usg=AFQjCNHgs5QyGpIPnPsb0azERZ35yJMVuA&sig2=XYi4jPIzOXckgY99FB8yPQ&bvm=bv.131286987,d.dGo
As far as funding is concerned I'm still trying to get a bit more info, as you mentioned some inconsistency between investor presentation at $500k and Quarterly indicating $1.6M, that said if the flow rates are good then it would likely be a prudent to do a CR and keep the drill bit spinning.
Also interesting side note is that they appear to have refreshed a drill permit for a well named Amerigo Vespucci #1?
