re: Ann: Exploration Well spudded at Kansas M...
Good to see the wells underway at Kansas. Looks like they are having a bet each way by drilling over closures. Not necessary if they were simply targeting the laterally extensive ML, but this way they can target the LSK if ML is a duster.
Alternatively they may simply wish to delineate the ML for now and complete in the LSK. They can then go away and analyse the ML data set. Perhaps let the bigger companies prove completion techniques and piggy back off their success, much like Snake River. Personally I would prefer this.
If they do go for the LSK, investors should note that the decline curve is quite steep. At least it was when they did their Cooper wells way back when. Also these are wild cat wells - 90% failure, lack of infrastructure, etc so best not to get your hopes up. Any sucess is just a bonus to Snake River. It will also be a while until revenue is raised from theses wells.
If they do target the ML, Sandridge has shown that Kansas is completely different from Oaklahoma. More oil. Much smaller IP. Very different decline curve. The end result is profitable wells but initial numbers don't have the wow factor. Adjust expectations accordingly.
All IMHO. DYOR. Good luck holders.
AOK Price at posting:
14.5¢ Sentiment: LT Buy Disclosure: Held
