akk takeover target halcon must be looking, page-16

Why would HK make a T/O for AKK. They would then have to divest (as it would be non-core and not part of their strategy) of everything but EFS.

I still think from the reading of the Farm-Out announcement

http://www.asx.com.au/asxpdf/20130730/pdf/42hb2vj4sh37kp.pdf

that HK will exit 2014 with 70% of rights in those 4,200 odd acres. Wouldn't that mean they only need to buy out the remaining 30%?? (so 1,300 odd net acres)

An offer for that would likely be at prevailing prices for boepd of production and/or Reserves (PDP & PUD are the main factors).

OR arguably HK paid roughly $30M to get that 70% interest, how much to get the remaining 30%? $20M values the 1,300 odd acres at $15,000 an acre......


That is of course if I interpret the Farm Out correctly. I cannot agree that AKK holds 5,000 acres anymore after the Farm-Out.

Hate to dampen the dream.