re: Ann: Oil production in Oklahoma and Kansa... I bought into...

re: Ann: Oil production in Oklahoma and Kansa... I bought into AOK today at 11 cents, the company's making very good progress at the moment. I wouldn't worry about the share price in the short-term, hopefully newsflow will help turn the tides. Balder was a beastly well, but it was likely a higher-case anomaly, so even a decent result with this second Range well will be positive news.

Hopefully they can increase their Snake River acreage holdings, as it looks like a fantastic project going forward. The consistency in results so far has been incredible good. The verticals averaging ~80 boe/d are going to be very valuable wells for the company. No need to look at horizontals at the moment I feel, outside of the non-operated wells with Range. The continual drilling of verticals on the Snake River acreage will both drive up production and hold leases by production, a horizontal well is a large risk if things don't go to plan, especially since it would take a hefty chunk out of the company's cash position.

I'm hoping Apache and AOK can release some results for their respective Kansas projects in the coming months. It'd be great to see valuations in the area increase, so that there is possibilities for an accretive farmout/Joint Venture.

Infact I think it could make sense for the company to eventually sell one of it's Kansas Mississippian projects if they are proven up (and can achieve an appropriate sale price valuation) as well as possibly monetizing the Arbuckle project in Ellis County (obviously once again only if it can achieve a reasonable valuation).

The company currently has a boat-load of drilling locations, and AOK could kill 2 birds with 1 stone by fine-tuning AOK's focus by reducing the number of projects (e.g. to only Snake River & Cooper or Snake River & Colby) + strengthening their financial position substantially in the process.

If AOK could achieve 10,000 net acres in Snake River, that alone could house 125 net horizontal wells (80 acre spacing), not to mention that it's a multi-stacked formation, which could multiply that number. We constantly hear about large acreage positions that I think we just forget how much drilling inventory is contained in these projects! 125 net horizontals implies 10 years of inventory at 1 horizontal ($3.4 million) per month!