Cmon the single well economics just an indicator of profitabilty. Your post was not clear on which assumptions you were challenging.
There is definitely a problem with florence field incremental o&g has 22,000+ acres that is adjacent to Akk's accreage and they have been producing over several years however they have abandoned the development due to low oil price. So i get that this field is not productive as others in eagleford, wolfcamp or wattenberg. IOG was using long horizontal wells.
From what i read the florence field has very steep decline curve, so i was worried that hyperbolic decline curve assumption may be too optimistic. but i overlayed a hyperbolic curve with IOG production curve and i actually found that the assumption is conservative.
With regard to 10 year well development plan. My rough calc assuming they maintain a low g&a $500k pa and achieving mid case single well economics at WTI price $45/bbl. Where year 1 wells pay for year 2 and when they get to year 3 they get to year 3 with 9 producing wells and have enough wells and production to access debt.
I am half inclined to chuck money in this, although i am little cautious about the price of oil and that florence field does not appear to be a prolific oil field, but i like the premise of Akk using cheap vertical deviated wells that intersect the natural fractures.. And they have performed 3D seismic, they have a chance pulling it off. We will wait and see.
- Forums
- ASX - By Stock
- AKK
- Ann: Chairman & CEO AGM Address
Ann: Chairman & CEO AGM Address, page-35
-
- There are more pages in this discussion • 45 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add AKK (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
HAR
HARANGA RESOURCES LIMITED.
Peter Batten, MD
Peter Batten
MD
Previous Video
Next Video
SPONSORED BY The Market Online