The next couple of months are going to be extremely exciting for AOK. Results from AOK's first horizontal in the Mississippi Lime play due in about a months time will be a good indicator of how good AOK's landholdings are. The operator, Range Resources is one of the best in the business in terms of drilling and fracking horizontals and they have been very successful so far.
They have drilled 8 horizontals near our land holdings with average results of 480BOE per well. They have worked out an NPV of $5.5million per horizontal well and AOK can potentially drill up to 17 horizontals within their Snake River landholdings. So if the results from Balder are as good as Range Resources' other horizontals, the Snake River project alone could have an NPV of $93million (17 x $5.5m) or nearly 30 cents per share and this doesn't include any of the company's other land holdings which also contain the Mississippi and Arbuckle Line formations.
All the best to all shareholders
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