I'm a long-term investor/accumulator in emerging mining/energy stocks. Stocks with proven/expanding reserves that have already started mining/drilling with good strike rates and potential.
AKK is one of those stocks. They have a very good strike rate 7 of 8 wells to date (the unsuccessful one drilled into a large cave and was abandoned). Infrastructure is almost in place provided by a third party. All AKK has to do is drill the wells and connect to the supply line:)
AKK gas wells are shallow (up to 1258 feet) so the time from spudding to completion is 7-10 days, so we can expect regular news.
AKK are scheduled to drill 44 wells this year and up to 200 by 2010. I would suspect/hope that they can ramp up the drilling of wells given their success rate and increasing confidence.
Production of gas from shale wells is fairly consistent over a long period of time (up to 30 years).
I think it is a stock with long-term prospects and plenty of upside with steady growth.
... so what sort of investor are you Jaffa?
Cheers, GrayNomad
AKK Price at posting:
0.0¢ Sentiment: None Disclosure: Held
