only to options left, page-5

Yes I feel sympathy too ... in similar boat(s) on others.

However, that said I cannot believe that there is any risk of trading while insolvent - makes no sense.

But I would like to point out the "illusion" which IMO to many "investors" (punters?) subscribe to with juniors.

The American O&G supermajors, independents & juniors have been doing the "shale thing" for a lot longer than any little Aussie junior. Don't for a moment think we have more "smarts" than them. Oh but you say its an "American team" - yep and best and brightest go to AKK and not APC, EOG, NBL, ...? Yes but AKK has Dr Mark Hart, CSM yada yada yada, first man to crack the Niobrara code (really - says who - RC??) - don't forget the Niobrara as a formation is widespread.

Granted AKK did drill first Niobrara Hz in "your area" but figure out the real meaning there.


AKK is not doing anything particular special or even new. Case in point (pun intended) is the reference made by RC to "Casing Drilling"

Casing Drilling

At AKK AGM Nov 2012 - you have RC saying "highlight of the year I would nominate the company's cracking of the code in the Niobrara.... used cutting edge technology known as casing drilling..."

http://www.youtube.com/watch?v=EDr__aqnrnk
(video uploaded Oct 2009)


Don't know if you saw it in the video but the rig was branded "Tesco" - which in April 2012 Schlumberger acquired the Tesco Casing Drilling division for $45M in cash.

Here is another link I hope y'all read and watch - Mar'13 (just for noting current events :-)...)

http://www.drillingcontractor.org/steering-capabilities-broaden-drilling-with-casingliner-applications-21398

It curiously has the following text:

"For an operator in Colorado’s unconventional Niobrara play, that turning point came after repeated drilling difficulties in problem formations. Using the non-retrievable Casing Drilling system, which involves rotating the pipe with the top drive and using surface equipment to grip the casing with an XCD3 drillable casing-while-drilling bit on the end of the casing string, the operator was able to drill the well to total depth (TD), land the casing in place and cement the interval. This was achieved in 10 days after spending more than 60 days trying to do the same project with conventional methods. The operator subsequently used the technique on a second well and drilled the entire interval in seven days, saving more than $3 million compared with the cost of the first well."


No doubt AKK has more challenges ahead of it. Not following the Cooper permit closely but would say it was necessary sale to raise capital and avoid potential costs. Monday morning quarterbacking is easy but one still has to wonder whether the purchase of addtional acres at Birch was timely and the decision to go Hz at the Austin chalk was way risky given the history of that interval - plenty of time to be heroic after drilling all the required wells to hold acres and generate reserves and cash flow.


At this point, given the real lack of data (particularly costs & timing) I know I do not see the upside in the SP.

GLTA