Its 5k for the gas alone, if a well was projected to only produce 5k per annum no one would drill. We want oil and we have it. Multiply oil flows from 12 hours by 2 for daily flows, give you 420 barrels of oil per day. 420 * $80 per barrel *0..85 (working interest) = $28560 per day. $28560 (oil) + $5000 (gas) * 345 = $11.58 million revenue per annum.
Decline rates exist, given the fields relatively new status assume around 25%.
Year 2: $8.69 Year 3: $6.51 Year 4: $4.88 etc.
We will know more once there are weekly flow rates.
This is a positive announcement.
AKK Price at posting:
2.3¢ Sentiment: Buy Disclosure: Held
