Daniella, Its NOT AKK's land. Halcon has earned a 70% WI in the (subset of) leases that made up Birch. That is THEIR "land" (just the mineral rights).
This is the O&G business and land management is part of it. Like I said earlier the Birch property is not large contiguous acreage.
It would do all good to read CRK's Qtrly. Couple of points:
- net 30,000+ acres in Burleson county & have a dedicated rig operating with plan s to add another in Q4.
- "...We picked up 200- to 300-acres...we ended up paying around 4,000 acres.." which I interpret as call operator hearing as four thousand an acre
- "...to get what we call Tier 1 acreage, we ended up paying around 4,000 acres. You're going to probably going to double, triple, or quadruple that, to pick up acreage now."
- "if we think we can drill all 100-acre spacing, we have 300-plus locations"
Analyst talking to ask question - "...But looking at where the Currington is, and the Flencher, it looks like a lot of your activities is really more focused on your oil window..."
CEO response "we plan to test all of our acreage, pretty methodically, and see -- make sure we know what to expect over the whole acreage position."
Because Birch isn't contiguous you really have to look at it is a larger context (haven't found an easy way to do this) but you can visual the development given the PR to date. What we do know is who has the surrounding infill and adjoining leases.
Just like RedBud which was a 20% WI well because HK had the additional acres (no different IMO to what CRK & HK & AKK are doing now with Currington).
My only question is what WI does AKK have in Currington - obviously less than 30% but is it 15%, 10%, 5%?
There's a boat load of concerns that clarity needs to be provided upon - this is not a concern for me at all. Standard Operating Procedure for O&G operators.
Expand
