what if eagle ford produces low, page-22

"The only promblem with halcon ... is high level of debt"
And that is how money is lost in investments (right Shelcomm)

Yep, and it can happen right under your nose, especially if your management are gilding the lilly (very convincingly) right up until the lilly falls over.

"My point in posting was it is something to pay attention to - HK specifics for El Halcon - as good result there will derisk your JV."

Not sure what you're driving at here Cmon, apart from the obvious, i.e. good result = derisked investment, but its AKK we've parked our money in, not Halcon, unless its the longer term relationship you're referring to.

It seems to me (as you rightly point out) that HK SH could do with a shot in the arm, and what better shot than a good result from a relatively untapped corner of EFS.

My take on the comparative (AKK vs HK) importance of these three wells is that even an ordinary result of say IP 700+ bobd and with similar or better petromax result, represents a company making opportunity that thanks to the free-carry, is already derisked to AKK. I think the 600bopd Exec rights qualifier is a part-clue here.

To HK a good result would be a relatively minor boost to its fortunes, and in the unlikely event that the bailiff (once they've finished with BCC) knocks on the HK door, they'll have effectively validated the Birch acreage for us with attendant benefits.

Forgive my little flight of fancy.

The risk to AKK I suppose might be if HK went tits-up prior to completion of the 3 well program. I'm not across the HK balance sheet, but I'd venture to say that's unlikely.