announcement out, page-43

"Interested in reading SectorLead and Cmonaussie on this announcement."

TBE, happy, and it hit 2c as thought. If this deal wasn't as good as it actually is, then I think 2c would have been the ceiling in this market and just a day trade. I think settling at 1.8c after this announcement undervalues AKKs assets, so believe this has further legs and will put a floor on the SP at SPP of 1.6c.

I thought anything around $20m was good for Texas.
I mentioned 2 scenarios.
$20m for 50%
and $18m for $13m of drilling and $5m cash for 50% was my preferred deal for best SP reaction.

circa $26m for 70% is about the same given we gave away a higher percentage.

Someone in the threads mentioned the poor flows from the 2 previous EFS wells, however forgot to mention they were vertical appraisal wells.
Very early on AKK have signalled a 8-10x increase in IP from the horizontals expected. Around 800-1000boepd IP.

Over the first few years, AKKs share of $ would be around $2.5-$3.3m pa for each well...

Lets hope the partner is drill ready and there isn't too much mucking around before we get cashflow.

I would also now use our $ for Kentucky recompletions, and fast payback. We had a go a taking the big bite and got burnt with $30m spent too fast.

I hope the team learnt their lesson now the major 2 projects are free carried for next 18 months.