Don't think we need to wait long for more HK wells to be...

Don't think we need to wait long for more HK wells to be drilled. Why?

-AZZ HK term assignment requires another 12 wells over 24 months to hold the leases. That's a well every 2 months if they were to average it out.

-AZZ acreage is amongst the most condensate rich HK has. The EUR rates released yesterday based on Dilworth 1H are a big improvement and edge it closer to the highly prized Blackhawk acreage. HK are increasing drilling focus in the liquids rich areas adding more rigs to Blackhawk this year.

-The September quarterly by AZZ was a big hint as to how much acreage in Hawkville was highly condensate rich. Basically the term assignment area appears to be HK's best acreage in Hawkville. See page 2 http://www.gtp.com.au/antaresenergy/inewsfiles/2010_09_30_Quarterley_Report_and_App5B.pdf

So I expect more drilling as it improves economics and reserves statements for HK.

Doesn't give us the AZZ net revenue interest, that may take one more quarterly to show up on cash flow statement.

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DYOR not investment advice