IMO seems to be some scare tactics in the forums ... past oil found in Colorado by AKK have not 'disappeared' as some suggest - rather they are plugged and waiting for oil prices to recover before producing.
At $90 a barrel, they would have proceeded with production .. but at sub $30, even the most low cost producers were reeling (and most packed up shop).
AKK have streamlined their portfolio and sold off all minority interests to pay off debt (now debt free - big plus) and are now funded and fully focused on Colorado.
AKK have spudded and hit another potential producing well.. the difference is the 790ft .. that's massive! in a month, we'll know how much it will flow, I suspect it will be quite significant.
This is a reverse cycle investment, the main reason (IMO) why the SP has suffered is that oil is out of favour ... with prices sub $30 this year - that would scare (and it has) most investors away.
But we are seeing the oil price recover, at $50 and more importantly AKK are funded and continue to find oil saturated wells that will be low-cost to produce.
In 6-12 months time, we can see oil prices back up to $80+ and AKK take steps towards production... and shareholders rewarded.
Yes there has been pain for a long time, but if the oil price keeps going up, and AKK keep finding oil .. its only a matter of time before we see the SP get the attention in deserves. IMO DYOR
AKK Price at posting:
1.2¢ Sentiment: Buy Disclosure: Held
