The way AKK are approaching Colarado or there other projects for that matter mitigates a lot of the risks IMO.
The EFS is the template, that is drill a well or two and try and prove up an area, if successfull start a farmout process if they don't prove they are unlikely to proceed on their own at least. We have drilled the first horizontal well in the Niobrara so thats out of the way and now awaits a partner.
The Pierre interval maybe approached differently as the wells are low cost so they may look at going alone on that but again if they drill a well or two and they are not productive then again they are unlikely to proceed on their own at least.
In a high risk industry thats about as low risk as you can get.
Cheers Whisky
AKK Price at posting:
1.2¢ Sentiment: Buy Disclosure: Held
