Looks like an aquisition/JV is imminent now that they are sure of funding. Hopefully AOK can consolidate some of the sections for grater efficiency.
The IRR / NPV / well profile info is very interesting. Note that: - the latest Hod well is longer and has more fracs than the average 2012 well....could we do even better than Balder 1? - the IRR and NPV are at the current oil price. Compare with RFE who is using a $96 (from memory) oil price. Despite this IRR / NPV is significantly better.
In short money is working much harder invested in AOK compared to RFE (and others in the play but RFE is our most direct Ozzy comparisson). The presentation specifically states that IRR is OPERATOR AND LOCATION dependant. I think analysts will be urged to consider this when advising their clients. Its not good enough to just invest in the "play".
AOK Price at posting:
13.0¢ Sentiment: Buy Disclosure: Held
