Agree about the increasing acreage being a significant positive. IMO, it implies that the drill results that they are achieving to date is meeting their expectations. You wouldn't be adding to your acreage otherwise.
Announcement also states that drill results to date are consistent throughout the Snake River Project. So any increase in acreage should logically translate to a proportionate increase in the NPV of the project if drill results from the new areas return similarly consistent production numbers. In fact, you could argue that economies of scale could possibly result in an even higher valuation especially since the existing infrastructure would be used depending our where the new acreage is located. Acreage has increased from 5500 to 8400 which is around a 50% increase.
Looking good so far. Exciting times ahead particularly if the oil price continues to remain where it is.
AOK Price at posting:
20.5¢ Sentiment: Buy Disclosure: Held
