Austin Exploration Ltd (AKK): High Impact Eagle Ford Drilling AKK has announced its high impact four well drilling campaign in its Eagle Ford project has commenced with the spudding of the Stifflemire #1H well on 23 December 2013. Based on the current drilling schedule, drilling operations on the Stifflemire #1 H well should be completed by end IQ CY2014 while the well will be fracked as part of a campaign in 2Q CY2014. Therefore, we believe a flow rate should be realized in 1 H CY2014 which has the potential to significantly re-rate the company to a material producer. Furthermore, an additional three Eagle Ford wells are expected to be drilled in 2014 (Two additional Halcon wells and one PetroMax well). Given the recent share price weakness and the material leverage AKK provides to a fully funded four well Eagle Ford program, we believe now is the time to BUY. We therefore maintain our Speculative Buy recommendation and price target of 2.5c/sh.
AKK Price at posting:
1.3¢ Sentiment: Hold Disclosure: Held
