Last oil rush report on AKK a couple of years back
$ 20M to $ 5.6BN: Can He Do It Again? Multiple Catalysts In Weeks
Young entrepreneurs are flocking to the US shale revolution to make their fortunes. Crusty old Texas oil barons are now welcoming fresh faced,
upstart millenials to the game – a new breed of aspiring wildcatters, landmen, engineers, investors, entrepreneurs and future oil barons and are setting up shop across the US shale hot spots like Texas and Colorado. This rush of talent is a testament to how much potential lies in unlocking this vast pool of wealth. Unconventional oil and gas deposits are clearly the future for the US energy sector – this industry is forecasted to be worth
at least $90 billion by 2017. The ASX listed company we have recently invested in is currently capped at $22 million, and have high hopes to become the next billion dollar energy company – by proving up and developing a swag of prime shale locations across the USA. Near term catalysts are almost too many to list, and we love near term catalysts.
In the coming weeks, this company will know the flow rate of not one, not two, but three high impact wells. This company has 5,000 acres smack bang in prime positions at Eagle Ford, Texas, another 11,560 acres at Niobrara, Colorado, plus a whole suite of other positions in key shale hot spots. Eagle Ford and Niobrara are two of the three best basins in the US shale oil revolution. These are the company’s main plays and the ones we’ll be covering in this article, as all the drill results start to pile in one after the other…
The company’s latest Eagle Ford well delivered a flow rate of over 1,000 barrels a day. This impressive result forced the operator and farm in partner, the giant $2.4 BN Halcon Resources, to order
the next two wells to drilled at the same time – they couldn’t wait to see what this company is sitting on. Back in 2008, the prime spots in the shale revolution at Eagle Ford, were selling for
$15,000 to $20,000 / acre and only wealthy companies could afford them – but through this tiny company’s forward thinking and research, they were able to snap up their Eagle Ford land for
just $200/acre. It got the land by following the play and snapping up acreage
before the prices went sky high. And in Halcon Resources they have a world class operator paying for a US$24-30M three well carry. Halcon knows shale oil in the Eagle Ford better than anyone out there. This company has potential to drill up to a 100 wells across their acreage. That’s just in Texas. The company’s huge, 11,560 acres in Colorado are located in the Niobrara Basin – another highly prospective unconventional gas play. This time they are going independent – so the revenue is almost all theirs – and has just
spudded its first high impact well. That’s another set of flow rates to look forward to in the coming weeks. That’s two significant energy plays –both located in two of the top three oil producing basins in the entire USA.
This company boasts Richard Cottee as Chairman of the Board – the head honcho of Queensland Gas Company’s rise from a $20 million market cap to a $5.6 billion sale to Britain’s BG Group. Our latest portfolio addition is in that sweet spot, right on the cusp of hitting the big time. Currently on a path from being an explorer to an asset developer, yet still under the radar and undervalued. But this may not last long. This company recently raised $2.86M from sophisticated investors, and are now undertaking an SPP to existing shareholders, as they transition to a cash flow positive company. At the same time, work is underway to set up a $40M debt facility that will accelerate the drilling at Eagle Ford and also push forward its oil and gas play in Colorado. The debt facility is being managed by one of Japan’s biggest banks and is aimed squarely at the sophisticated investors – it’s likely only a matter of time before the smart money snaps this company up. So while this company is still within reaching distance, let’s get acquainted:
Lol - I wonder who is responsible for article and who is selling
By the way - AKK weren't always tiny - they become Tiny !!!
