change of sentiment for akk?, page-4

' total consideration in the transaction would be less than $2,000 per acre, a modest amount for a "hot" horizontal oil play..."'

I'm reasonably comfortble your numbers Cmon, but I think its worth taking as read, that AKK is unlikely to farm out/JV on the realestate alone. I think the thinly veiled suggestion of nearology (and possible involvement) from recent RC mention of the Halcon result, and the (likely) third party-funded gas extraction albeit in its early phase, is an (as yet indeterminate) but reasonable value-adder.

How much remains to be seen. What has been seen however, is that AKK have proven up the readiness of others to monetise their gas at no cost to the company. This is a compelling business model for a minnow, and significantly revalues any AKK land, if for no other reason that there is (always) more likelihood of finding gas over oil, and its more conveniently extracted than at Niobrara.

I think whatever deal emerges, it'll be on much more favourable pro rata terms than pathfinder, by way either of lower WI to the third party, or a greater number of wells free carried. Halcon have done an awful lot of free PR.