Oil is going up on news OPEC may freeze excess oil production!
Adding to that I found some nice pieces of information indicating the minimal break even prices AKK requires to make profit from oil.
Goudy (CEO) said: "the company believes it can make good money on its Pierre program, which is economic at north of $30/bbl."
Above $31 Pierre is profitable for AKK- current WTI oil price is $43.
AKK have also achieved the halving of costs associated with the drilling and completing wells to around $500,000. That is handy considering they have more coming on as a part of the Pierre program.
Additionally the new wells and Magellan-1 should complete their flow testing in the coming weeks - If successful: "It will have a material impact on revenues and bankable in-ground reserves." - Goudy.
But surely AKK is going down to 0.4c - and then to 0.0c as the pessimists say right?
Perhaps not:
1) AKK is now debt-free.
2) AKK believes that it can eventually drill sufficient wells to make the Pathfinder project self-funding.
3) AKK believes it can drill out its leases where there is space for some 350 wells.
Finally Goudy stated: 'it had kept Kentucky production in-house because the business breaks even at $40/bbl, providing good cash flows.' - As WTI is currently $43 - AKK's Kentucky production is now profitable!
Pretty positive overall, I believe! But hey, I am an upramper right?
Not exactly a terrible company now is it - considering it has been contending with some really tough macro oil events and it has good upside potential.
AKK Price at posting:
0.6¢ Sentiment: Buy Disclosure: Held
