change of sentiment for akk?, page-3

Not to put a dampener on your party 20103030, but this sort of acres valuation has been done before on AKK - go read the $10K/acre posts on Niobrara and comparisons to APC and Wattenberg field.

Whether its Eaglebine or Eagleford, Austin Chalk or Buda matters little at this point.

As for JV forking over $20M for 65% WI in 5,000 acres for essentially unproven dirt (all you have is OOIP calculations and a couple of holes that haven't amounted to much (yet) - which is me intentionally putting a harsh spin on it)

The comparison then to ZaZa and its JV with EOG.

"...Under the terms of the Joint Venture agreement, EOG will become the operator of the properties and will carry ZaZa on up to the first nine wells and make cash payment to ZaZa of up to $50 million to earn up to 75% interest in up to 55,000 net acres. Neither ZaZa's press release nor the 8-K filing specify the zones that the joint venture plans to test. However, assuming, for illustrative purposes, that drilling results turn positive and the nine wells will cost $10 million each (high estimate due to significant amount of geo-science work involved), total consideration in the transaction would be less than $2,000 per acre, a modest amount for a "hot" horizontal oil play..."


With that as background is your post genuine? To ask for $20M and free carry for 4 wells (so if AKK retains 35% WI and well costs $6M) - that's worth another $8M - making a total of $28M for 5,000 acres or about $5,600/acre or almost 3 times what EOG paid!!!!


Cite the $115M for 2,000 acres!!! ($57,500 an acre) guessing you mean 20,000 acres.

Don't forget - 11 working wells will have production and Reserves (which AKK does have).