There's a bit more to AKK's area that's more or less being ignored. AKK drilled a horizontal well into the Niobrara formation in Freemont County that was reported to produce 403 BOEPD. So there are at least 2 formations that produce oil for AKK.
The other formations present in this area are the Codell, Greenhorn, Grenaros and Dakota. These are secondary targets for AKK and could contain substantial amounts of hydrocarbons and if they do and it's recoverable then it's a different ball game. It's a layer cake and very early days yet in exploring the full potential of this area. Small companies with limited capital have to do whatever it takes to stay afloat. When the flow tests on the 3 wells are completed we'll most probably know the basic worth of AKK. It's worth noting that the world's oil suppliers are getting heartily sick of heading for the poor house and consequently the price of oil is gently but steadily rising. Many investors don't factor into their calculations that the world usage of oil is ~95 million bbls of oil per day. Just a 5% drop in production would cause a shortage, then the price is anyone's guess.
AKK Price at posting:
0.6¢ Sentiment: Buy Disclosure: Held
