Finalised: 23-08-16 Published: 23-08-16 Oil Flowing as Tiny AKK Plots Path to $400M Revenue, page-22

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25/08/16

08:46

Post #: 18664011
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Originally posted by Michaeljob ↑

Cheers for that SL, had a bit more of a read up this morning and see the figure of $500k/well, seems very low given that most in the area are closer to the $4m mark however looking at the drilling set-up and considering that management are taking a hands on approach I guess it is possible that they get the costs down significantly.

It appears that the recent rights issue provides the capital for this exploration program but they need to get oil to keep their heads above water, given that the neighbouring operators have had a successful campaign with 21 productive wells the probability of the ground being productive seems high.

Whats your take on production testing timelines? Looking at the set up and internal operations strategy I would assume that they will not be flow testing until all completions are finished, then hands on sequential flow testing.

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I'd guess they will want to run IP30 + the gap between drills as they want to test all at once.
Thinking 45-60days. from last vertical.

Main thing to look at is EUR. and the payback period. as you need to constantly keep popping holes to arrest the declines in your first wells...bit like a mouse in a wheel with a very large CR ball rolling behind.

One trip and you're dog meat

Last edited by Sector: 25/08/16

AKK Price at posting: 0.7¢ Sentiment: Sell Disclosure: Not Held
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Finalised: 23-08-16 Published: 23-08-16 Oil Flowing as Tiny AKK Plots Path to $400M Revenue, page-22

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To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

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