Thanks for a great post and great contribution Michael. It's...

First 36 Last

Share
Profile

Follow
CAPV

42 Posts.

29/08/16

21:49

Post #: 18775917
Share

Originally posted by Michaeljob ↑

Aussie, had a chat with Tim and Guy earlier today.

Queried a few points from the latest presentation with the timeline being one of them, as we know they are currently drilling flow testing will follow and is expected within 4-6 weeks.

My concerns on this one are primarily around funding and understanding the downside should the drilling turn out to be unsuccessful.

The management team appear to have done a great job of reducing the drilling and completions cost by doing the bulk of the work in house. They have essentially dry hired the rig and associated equipment and are running it themselves, they have significantly reduced overheads by reducing the headcount to which reduces administration costs therefore reducing non essential cash burn.

The expectation of being able to drill for $500k/well is on target and at the completion of drilling the cash on hand should be around $500k leaving them reasonably low on cash but the expectation is that they will be in a stronger position going forward due to increased production revenue.

As was earlier announced a large 790 ft oil column was intersected during the drilling of the first well which is obviously a very positive signal, albeit no guarantee. Neighbouring leases have had high strike rates (21 from 21) with the example in the presentation showing average IP30 production around the 130bbl mark and AKK ground has been shown to have a thicker potential payzone so this is a useful benchmark.

The company's low case projections show solid return from IP50 flow rates which I personally believe are achievable.

In summary I think that AKK is sitting on solid acreage and that the decisions being made to set them apart as a low cost producer bodes well for the future. If this area is successfully proven to be productive then look for a decent increase in acreage valuation.

Expand

Thanks for a great post and great contribution Michael. It's been long since anyone has posted any useful information or anything worthwhile in the AKK threads (they've been absolutely appalling to read). Thanks for picking up the game.

AKK Price at posting: 0.7¢ Sentiment: Hold Disclosure: Held
4 Upvote

0 Great analysis

Reply

Top Stories

The Rising Tide: How institutional adoption is shaping the future of crypto

CC9

Chariot locks in high-potential drill target at Black Mountain, one of the USA's largest lithium landholdings

Week 34 Wrap: HotCopper's top watched; Oz banks cut saver interest; Kamala’s 28% corporate tax; AI’s back

Why are so many ASX explorers setting up shop in Saudi Arabia? + 8 stocks to watch

SER

How flooding did Strategic Energy Resources a favour: Four holes down in 'redesigned' gold & copper campaign

First 36 Last

Add AKK (ASX) to my watchlist

Thanks for a great post and great contribution Michael. It's...

Top Stories

The Rising Tide: How institutional adoption is shaping the future of crypto

Chariot locks in high-potential drill target at Black Mountain, one of the USA's largest lithium landholdings

Week 34 Wrap: HotCopper's top watched; Oz banks cut saver interest; Kamala’s 28% corporate tax; AI’s back

Why are so many ASX explorers setting up shop in Saudi Arabia? + 8 stocks to watch

How flooding did Strategic Energy Resources a favour: Four holes down in 'redesigned' gold & copper campaign

Featured News