Not too sure if this one was posted from The Next Oil Rush.
Regards.....................
FINALISED: 23-08-16 PUBLISHED: 23-08-16
Oil Flowing as Tiny AKK Plots Path to $400M Revenue
How do you find acreage which hasn’t been drilled before in the US? More to the point, how do you find undrilled ground that is
right next door to a productive oil field?
Furthermore, how do you do that as a micro-cap upstart from Australia?
Well, it helps if you’re Austin Exploration (ASX:AKK).
Today, we’re going in-depth on Pathfinder, one of the more distinctive opportunities in the oil world right now.
It’s an opportunity which could see AKK net upwards of $10 million by the end of 2017 after drilling 10 wells with a target of 1000 BOPD at $45 a barrel.
Beyond that near term target, the company has outlined a pathway to $400 million in revenue for the project, assuming productive wells and a steady increase in the price of oil, moving up to $65/barrel over a 10 year period.
Of course, these are revenue estimates based on a number of assumptions, and should not be taken as guaranteed. Always consult a professional and do your own research before deciding whether or not to invest.
We’re going to talk a lot about numbers and projections in this piece, but the thing is that a well drilled at Pathfinder is already producing oil and it hasn’t even been completed for production yet.
We’ve got the video to prove it as well…
So here’s the rundown, before we go more in depth.
AKK has virgin acreage in the world’s second oldest oil basin, with 15,282 acres showing significant expansion potential. It is next door to a project which has delivered 15.5M barrels of oil in the past.
It has a fully funded three-well program underway, with oil already discovered in one well which has thus far been drilled AND intersected a very large 790 feet column of oil (drilling at the second well has already started).
Importantly, AKK is debt free and has created a robust business plan that is driving operational costs down and could see it profitable at US$30 per barrel.
That’s a good situation to be in considering the price of oil is currently above US$45 a barrel and climbing.
AKK has managed to bag what could be an unprecedented opportunity in the US oil and gas space, one of its key wells is already bringing up oil, and a success case has $10 million in the offing by 2017 and potentially $400 million in 10 years if everything goes its way.
How did this micro-cap pull off the feat?
Re-introducing:
