AKK 0.00% 0.3¢ austin exploration limited

county edmondson

  1. Ya
    5,909 Posts.
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    Folks

    Intersting friday announcement indeed from AKK after eons!!

    Here are some figures from my research on Edmondson county and the O&G prodn figures from there, looks promising on the whole. Here's a summary,

    Oil Produced for 2006: 14,578 bbls
    Total prodn till date: 660,506.45 bbls (from 1943-2006)
    Gas Prodn: 8,958 Mcf
    Total Gas Prodn: 547,051 Mcf (1997-2006)

    Overall statewide figures are as under:
    Oil prodn: 2,170,806 bbls
    Gas: 95,195,825 mcf

    Back to County Ed, since 1983, 110 wells have produced oil from the Devonian Coniferous Carbonate section in the 5 quadrants of this county (Bristow, Brownsville, Park City, Rhoda & Smiths Grove). Since this oil is coming from a shallow carbonate zone & is thick in quality & doesnt have high pressure, it requires a beam pump installation to pump it to surface (which is what AKK intend to do next).

    The news on friday by AKK about oil found from the Devonian Corniferous zone should b a moral victory for the directors & stk holders at Austin and its no surprise that they've shown their intent in going ahead with drilling 44 wells by Dec '08.

    Its costing them $150k for drilling & completion since all the wells 2b drilled in the area are shallow 1500 ft or 500m deep). Selling price of gas is US$4.2.

    The reason why no flow rates have been mentioned though is b'coz the New Albany Shale in Kentucky needs 2b fractured to facilitate gas prodn, as for the oil, its heavy, so that requires a Sucker rod & Beam pump installation to bring it to surface.

    The fact that its close to existing infrastucture & has known distributors makes cash available to AKK once the wells are tied into the production pipeline & the main gas grid. Hence the excitement on drilling 44 by 2008 & 200 by 2011. Its akin to compound interest (slide no. 16), more wells drilled, more b the prodn, because prodn from 50 wells alone over 6 years will decline hence the need to drill more. Get it folks!!

    Note that this Carbobate section is known to produce both Oil & water in Illinois Basin, & as the numbers above suggest the explorers in Kentucky havent given up on oil till date.

    Should b interesting to see how the drill programs pans out, howevr I dont expect to see flow rates at this stage as they will need to frac the shale & pump the oil first.

    Good luck to all longterm holders & all newcomers. Certainly interesting times ahead for AKK.
 
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