Time to buy companies with reasonable IRR now, in this low oil price environment, companies like bpt, DLS, sea and LNR. They have reasonable production, and if oil prices move up, they will move hard. Akk barely covers admin costs at the moment, and there partner in halcon is really struggling at the moment, has a massive debt too. Will they survive the down turn? Possibly as they have there production hedged, unlike Akk. Halcon has dropped to one rig in el halcon, and so I cant see them drilling many wells with Akk, as they would be better off drilling into there own acreage now, as AKK cant contribute to the wells.
The future of Akk short term lies in Colorado and the testing and putting onto production the perre wells which are problematic, as what's happened in the neighboring field of Florence, where IOG have had problems testing there two oil wells which encountered oil. Lets see if akk can test there wells better
