Ann: Production Underway at Ludwick No. 1 Well - , page-4

re: Ann: Production Underway at Ludwick No. 1... Malay,

Always important to manage our expectations IMO. Too early to tell re Ludwick No. 1 Well. The 240bpd are INITIAL flow rates. Will need to see stabilised flow rates and decline rates first before we can decide if the results are good. Important to note that the Ludwick No. 1 well is located in Ellsworth County, Kansas which is outside the Mississippi Lime play. The main target here is the Arbuckle formation which is IMO not as exciting as the Mississippi Lime formation. Nevertheless, anything that adds to our oil production is a good thing IMO.

I'm relatively new to AOK as well (still less than a year) but it's important to understand that things have been moving slowly over the last year or so for good reason. The board recognised the significance of the Mississippi Lime play in 2011 and made a conscious decision to suspend/ minimise development drilling in order to devote available funds to securing leases in the play. As a result, AOK's net acreage has increased from approx. 1000 net acres in 2011 to 22,500 net acres today. This IMO, was a very smart move and if our acreage in the play is as good as what our neighbours are reporting, we are in for a very exciting ride in 2012 and beyond. Need to be patient though and hope the oil price stays healthy.