All ML drilling to date has been on the 1000 acre ETU (East Tonkawa Unit) of the Snake River project. Assuming 85K EUR and 20 acre spacing, one would assume a cumulative EUR at the ETU of 85K X 50 wells = 4.25 Million BOE
However the Reserve report shows 2P reserves increasing by 6 million BOE. The report must include oil reserves that are in intervals other than the ML. The ETU has historically produced from many intervals (Clevland, Redfork,etc) so if these are established as being behind pipe in the new wells, they will still contribute to re reserve estimate.
AOK is doing a fantastic job. The current report just isn't helpful by lumping all reserves together.
AOK Price at posting:
15.5¢ Sentiment: LT Buy Disclosure: Held
