AKK (ASX) Ann: AKK expands asset base in Colorado with acquisition of adjac

Originally posted by sharks37 ↑

"They get an income from those 22 wells which, virtually at bugger all cost, will spit out over $2,000 nett, PER DAY, id infinitum. Will pay the bills for a very long time."

$2,000 nett per day - really? At what oil price, after what taxes & royalties, production & maintenance costs? The number you quote will not even be the revenue figure before costs, let alone nett contribution.

"It has effectively cost the company nothing, albeit with dilution to existing shareholders which goes with these types of relative start up companies."

It has cost shareholders 40% dilution of their equity to buy this acquisition, has it not? Is that nothing?

"They have ready made targets to drill another 6 wells whenever they can organize it...AS I see it, shareholders now have a completely transparent plan, simple and logical, upon which they can make a reasoned decision."

Completely transparent - really?

1. So has the company explained how they are going to pay for those next 6 wells they are going to drill? When is that going to be?

2. So why hasn't the company published the 30 day IP rate for Magellan #1?

You are very critical of others offering opinions but almost nothing you have said is factually correct, which makes the opinions dressed up as facts.

Cheers, Sharks.

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Sharks,

Don't be a goose. If you take a gander (sorry couldn't resist) at IOG recent presentation they tell you exactly what their Netback is on a Barrel of oil sold.

26th Sep - IOG released a presentation and on slide 17 - "Financial Information" they broke out each area of operation

Florence Field for H1-16
Revenue per BO = $32
Royalties/Prod Taxes per BO= $10
Field Operating Costs per BO = $11
NETBACK (GROSS PROFIT MARGIN) = $11 ((34%)

@gassed believes $2,000 NET PER DAY from 52 BO (or $38.50 per BO) and they do 52 bopd and this occurs id infinitum.

That @whisky49 is the biggest laugh here .... not Greeny

So the facts do not support @gassed and the again unfounded optimism dressed up as touting.

GROSS PROFIT = $11 x 52 = $572 per day ... which if you are interested would take 3,497 days (9.6 yrs) to recover $2M

Of course oil price received (not the WTI index) wont be $32 forever either ... but then neither will production be 52 bopd id infinitum from these wells either.

And all that "used infrastructure" ... what they are just go to lift it off Florence field and put it into Pathfinder?? Possible (assume P&A work done on Florence). Couldn't you just buy some 2nd hand gear - lots for sale.

Still comes down to why wouldn't spending $2M drilling 4 wells at Pathfinder be more capital efficient? You know, 7 month payback and all...