My previous post re 2014 expectations was way off the mark, now with abit more clarity.
It seems the "lack of infrastructure in the north" simply refers to Area 4 in Snake River. If they are quoting 6 months for infrastructure, then we won't see much actual gains in production until 2H 2014.
The $2.4 spent in Q4 2013 has not resulted in increased acres. I suspect it was just renewing existing leases?
So the drill program looks to be progressing as most (including me hoped): - accelerated drillig: 4-5 per month with 2 rigs (previosuly 2 per month with 1 rig) - progressive lease expansion aiming at 80+ new acres per well drilled
By my calculations this should result in about 60+ wells (30 new wells) by end of the September quarter. Infrastructure should be online by then also. It usually takes another 2-3 months to bring them online. At a conservative 35 BOEPD average, I'd hope to see AOK producing over 2000BOEPD as their 2014 exit rate.
If leasing goes to plan, they should add another 2-4000 acres to their already 6000 acres. Interestingly Territory Resources just closed their sale tender (acres on AOK's southern border). Also RFE is "reviewing their 2014 forward program". I still have hopes RFE and AOK can find a win win deal re: RFE Dev Area 9
Again nothing spectacular, but solid progress with few negative surprises IMHO.
AOK Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
