I am taking a basic approach and just giving each well they drill 30 boepd prod, which is pretty conservative given their existing wells types.
I dont know the exact math on how many wells to maintain but they have been doing easily on the 2 well per month program and they are increasing from that.
At the moment they are going at a 3 per month program which would be 36 wells, at my basic 30boepd per well that is an approx additional 1,080 boepd which then matches up with the 1,600 exit rate they quote.
I think it is also worth noting that the company has been quite inefficient in the past and I think this is about to greatly change...spud to sales times etc
All imo and dyor!
AOK Price at posting:
15.5¢ Sentiment: None Disclosure: Held
