i sent kenny an email asking him to clarify the well expenses and their future plans and here is the email that he sent back
Good morning xvgfsdjje, I'd be happy to assist with your data request. As you know from our previous releases these first four wells are designed as test wells and the completions are focused on proving out the underlying corniferous formation. Because of the slower pace, limited number of wells and slightly different techniques used on these first four, our costs are currently are a bit higher than they will be when we scale the operation.
They are currently averaging $45k to complete each well through production. This includes storage tanks, pump-jacks etc. Our second phase of the program will be much more targeted and the completion technique will be more routine.
Based on current bids, crew availability and general weather patterns in the area we are anticipating our expenses per well through completion to average $23,000. After each completion we then know if we have a successful well. If we do, then an additional $5,000 to $8,000 is spent bringing it into production then getting the oil to storage and prepared for sale.
Wells can be drilled in one day, completed in two and depending on the distance of the well from in place electricity, brought into production in 1-5 days.
As with all success in the oil patch, interested investors seem to follow. We don't anticipate having any issues drilling as many wells as we desire. Our current lease holdings offer at least 60.
Please let me know if I can provide further assistance.
Sent via Iphone
All the Best Kenny Hill VP of Operations and Investor Relations 512-423-2547p
AKK Price at posting:
5.5¢ Sentiment: ST Buy Disclosure: Held
