ann't, page-5

"Also included in the sale is a 70% interest in Austin’s B1 Krueger and B3 Schwartz Galbreath wells and associated acreage."


Maybe I don't quite understand .... the farmout for the 4,221 acres would appear to be the acreage not HBP from the current drilling performed by AKK. Roughly that is 90% of the acreage (or roughly $5,685 - $6,400 per undeveloped acre). Take away what ever AKK paid for that for a rough net return.

Then comes the line that 70% interest in B1 & B3 are included.

Well hello... how much did AKK spend to drill those? OK can't get that coin back - but that 70% WI also becomes a NRI 52.5% of all revenue produced....

And as a side note .. no mention of Austin Chalk and B2.


Guess its proof that beggars can't be choosers. Seems a little one sided to me - all thoughts of buying in post farmout are gone for me.


GLTA - (I would ask for more info if I were you guys).