The Short Junction Hunton Lime Field was worth over $1.25 billion when the field was purchased last year while we had $100/barrel oil prices. (Degolyer McNaughton Report from 2008)
I suspect Trey may have "buyer's remorse". The price started dropping about the time they spud their first well last fall. At $50/barrel this deal will not work very well, in my opinion.
On a positive note, Trey reported on an Oklahoma Corporation Commission Form 1022 that the first well produced over 600 barrels of oil per day on a production test in April. This can be viewed on the OCC webpage by clicking Oil and Gas / Imaged documents. / Form: 1022 / location: 2210n03w / Search
If the price rebounds this could be worth a lot of $ to K2.
KTE Price at posting:
2.5¢ Sentiment: Hold Disclosure: Not Held
