Come to think of it single well economics only takes it the cash flow to the well head, so IRR calculation for mid case might be alright. I am surprised that the oil price differential can be so high, but then again AKK may have negotiate good terms for their oil off take. I can appreciate that AKK may not be able to disclose commercial sensitive information, so its hard to work out the long term viability or net profitability of this stock.
I am sure there is money to be made on this stock, if you are willing to take the risk, and if you know when to exit. AKK did mention that their intersected one or two additional natural fractures, so the IP24 oil might be better than the first well. You only need a couple 0.1 cent uplift to make a good profit.
AKK Price at posting:
0.6¢ Sentiment: Hold Disclosure: Not Held
