Sorry Cmonaussie, i read your post several times, i am trying to figure out what exactly you have issue with single well economies. I agree that the Royalty should have built into the Opex calc.
Single well economics is always optimistic, heck that first wells they drilled into may be the sweetspot and the next two wells are duds.
If you are investing in this stock you taking punt on the higher end of field development risk curve. And AKK's entire fortunes are riding on this development. Even if next 2 wells produce IP24 come above the mid case estimate of 85 bbl/day production there still no guarantee of success of the field development but the chances would have improved.
Ann: Chairman & CEO AGM Address, page-24
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