Current situation

Bloomberg today: Rigs targeting oil sank by 14 to 1,568 this week, the lowest since Aug. 22, Baker Hughes Inc. (BHI) said yesterday. The Eagle Ford shale formation in south Texas lost the most, dropping nine to 197. The nation’s oil rig count is down from a peak of 1,609 on Oct. 10.
Drillers are slowing down as crude prices tumbled 24 percent in the past four months. Transocean Ltd. (RIG) said yesterday that its earnings would take a hit by a drop in fees and demand for its rigs. The slide threatens to curb a production boom in U.S. shale formations that has helped bring prices at the pump below $3 a gallon for the first time since 2010 and shrink the nation’s dependence on foreign oil imports.
“We are officially seeing the slowdown in oil drilling,” James Williams, president of energy consulting company WTRG Economics, said by telephone from London, Arkansas, yesterday. “There’s no doubt about it now. We’re already down 49 rigs since the peak in October. It’ll have fallen by more than 100 rigs by the end of year.”

More availability of rigs= lower drillings costs ??
Some less economical producers selling land cheaper?
Glut till Christmas as drilling slows?

With our cash from Macquarie and the majority of our wells coming online shortly AOK are in a good position to grow and generate steady cash.
I don't want to assume that lower rig utilisation would equal lower costs but let's hope so. Maybe 8-9 wells per month could start in March. Does anyone have any idea what their reduced drilling over the wet season entails?

Not even close to AUT but the foundations are strong. Don't forget the gas .