Plans may have changed from earlier guidance. Ref this from p12 of preso:
"• Burleson county, Texas • Acreage: 5,000 acres • Primary target: Eagle Ford formation • Oil/wet gas window • Appraisal Plan • First vertical well (Krueger #1) successfully drilled to 9,325 feet • Second and third vertical wells to commence Q2 2012 and all will be tested Q2/Q3 2012. Best of three to be completed as Austins first horizontal Eagle Ford well • Potential horizontal well IP > 600 BOPD • Initial development plan of approximately 50 wells."
Anybody who's done the checking will realise that they needed more funding before anything post-Krueger #1 could be done.
In fact I believe this guidance (31 Jan): "Austin expects that commercial production of both oil and gas from the Krueger #1 well will commence in the first quarter 2012." - needs explaining in the light of the recent preso.
Nevertheless, the cr is now a done deal and it could be that the programme will now be accelerated such that they actually do test K-1 in Q1 '12, as well as getting cracking on the Niobrara. Without substantial funding the co was going nowhere. I acknowledge that we can't have it both ways.
AKK Price at posting:
3.4¢ Sentiment: Hold Disclosure: Held
