Highly likely but not inevitable IMO Sector, should they get oil to flow from current drilling activities then there will be income which will be enough to remove the absolute need to raise funds.
IP30 flows of 100bbls @$45/bbl on 3 wells would for instance provide $405,000/month
Say we drop for the remainder of the year to 50bbls/d/well then we are still looking at around $2.5M income from the new wells which with the new minimal expenditure structure would keep things ticking along.
Obviously hitting those rates is no given but considering the success of the neighbours quite within the realms of possibility.
That said timing wise a CR at around the time of successful drill results would make sense. The current cost of drilling is very low due to the downturn in activity and availability of equipment therefore off the back of drilling success I would back a CR to bring forward the development timeline.
If they hit 3 dusters.... Prefer not to discuss that ;-)
AKK Price at posting:
0.7¢ Sentiment: Buy Disclosure: Held
