Oh Yeah !!
Flow rates have come in very strong at 330,000 cf/d. Due to the low cost of the wells they only need around a third of this rate to book 2P/3P reserves.
KKO have 11 TCF of gas in place which makes this one quarter the size of the Gorgon field ($50 billion dollar project). This is massive. If these flow rates continue they should be able to book 10% in reserves = 1 TCF. You could see a market cap of $500 million = $4.00 a share !!!!
Massive land holding (potentially 23,000 km2), so a 1000 plus well field is easily accommodated.
Located strategically in the guts of South African Energy demand which makes me think some of the domestic majors will be watching closely ready to pounce and takeover the stock.
Great Management - from 1.7 TCF to 11 TCF within 2 years of listing shows these guys are smart and connected.
Early days, I reckon anything up to 40 cents is great buying - be patient as this is just the beginning !!
Noah's Ark Out.
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