Hi Gassed obviously with 52 BOPD ( is that Net or gross, around 38 Net ) spread over 22 wells equalling 2.36 BOPD or less per well on average, means some of those wells will have been shut in. IMO it would take somewhere between 3-5 BOPD Net at todays oil prices to break even. Eventually there will be P and A costs associated whith those wells.
I see the deal as a stripper well operation that will produce instant income and some reserves but very little ,if any profit. What it does come with is infrastrucure including pump jacks, gathering systems and some casing that could be used on other wells plus six low risk drill ready sites , 3D and logging data.
On balance probably neutral to positive given it comes with no debt but considerable dilution, a higher oil price would belp...
The ready to drill sites will be helpfull to keep drilling momentum going while they choose other locations at pathfinder..
Cheers Whisky
AKK Price at posting:
0.6¢ Sentiment: Buy Disclosure: Held
