AKK 0.00% 0.3¢ austin exploration limited

making sense and dollars !!!

  1. 1,514 Posts.
    "The Company has successfully completed a 16 stage frac in the Niobrara formation over the 4,100 ft
    horizontal leg of the Pathfinder C-11-12 #1HZ well.
    A Weatherford jet pump was installed on Tuesday 20th of November and is currently pumping at an
    average rate of 600 barrels a day to flowback the frac fluids. Since then, approximately 600 barrels of
    good quality (37- 39 API) oil has been recovered along with the flowback fluids, which is highly
    encouraging. In addition, unexpected gas volumes were produced and are currently being flared.
    The Company has immediately moved forward with designing permanent production facilities.
    Company policy allows for 100 days to complete and bring a well into production."

    mrdeeds says: So we got 600 barrels of high quality oil in 7 days
    That is 85 barrels per day = $7650 per day = $229,500 per month and $2,754,000 per year (based on $90 per barrel)


    This means 14.3% was oil and the rest was fraccing fluids.

    Even I know that the fraccing fluids will be the highest proportion initially and gradually the flaccing fluids will decrease in proportion and the oil percentage will increase...

    So...it is not "rocket science" to predict that the final flow rates for this well could easily exceed 500 barrels per day !!!

    This would be 500 x $90 = 45,000 per day ; $1,350,000 per month and $16,200,000 per year !!!



    BTW: What you guys think of this part of the announcement ??!
    "unexpected gas volumes were produced and are currently being flared."?!


    API degrees rating:

    American petroleum Institute's inverted scale for denoting the 'lightness' or 'heaviness' of crude oils and other liquid hydrocarbons.
    Calibrated in API degrees (or degrees API), it is used universally to expresses a crude's relative density in an inverse measure
    Lighter the crude, higher the API gravity, and vice versa because lighter the crude higher its market value.


    Gasoline: 50 API degrees.
    West Texas Intermediate (WTI) crude oil: 39.6
    Brent Crude: 35.5°
    Oil with API greater than 30º is termed light
    Between 22º and 30º, medium
    Below 22º, heavy
    Below 10º, extra heavy.
    Asphalt on average has an API gravity of 8°

    Formula: {(141.5 ÷ relative density of the crude (at 15.5°C or 60°F)} - 131.5.

    Read more: http://www.businessdictionary.com/definition/API-gravity.html#ixzz2DlaRkMDz

    West Texas Intermediate (WTI) crude oil is of very high quality and is at refining a larger portion of gasoline. Its API gravity is 39.6 degrees, which makes it a "light" crude oil, and it contains only about 0.24 percent of sulfur (making a "sweet" crude oil).

    Brent Blend is actually a combination of crude oil from fifteen different oil fields located in the North Sea. It is still a "light" crude oil, but not quite as "light" as WTI, and it contains about 0.37 percent of sulfur (making it a "sweet" crude oil, but again slightly less "sweet" than WTI). Brent blend is good for making gasoline and middle distillates.

    Since WTI is lighter and sweeter crude which requires less processing, it has historically enjoyed a $1 – $2 a barrel price premium to Brent crude oil.

    However, WTI’s premium disappeared about a year ago and in recent days it has been trading at more than a $10/bbl discount to Brent mainly due to rising inventory levels at Cushing Oklahoma, the delivery and price settling point of Nymex crude futures

    Present prices:

    Brent Crude $111.23
    West Texas Intermediate $88.91

    So the discount at present is a little over $20

    The price of petroleum as quoted in news generally refers to the spot price per barrel (159 liters) of either WTI/light crude as traded on the New York Mercantile Exchange (NYMEX) for delivery at Cushing, Oklahoma, or of Brent as traded on the Intercontinental Exchange (ICE, into which the International Petroleum Exchange has been incorporated) for delivery at Sullom Voe.

    (Sullom Voe is the major oil port in the Shetland Islands, north of the United Kingdom of Great Britain and West of Norway.)

    The price of a barrel of oil is highly dependent on both its grade, determined by factors such as its specific gravity or API and its sulphur content, and its location. Other important benchmarks include Dubai, Tapis, and the OPEC basket. The Energy Information Administration (EIA) uses the imported refiner acquisition cost, the weighted average cost of all oil imported into the US, as its "world oil price".

    The demand for oil is highly dependent on global macroeconomic conditions. According to the International Energy Agency, high oil prices generally have a large negative impact on the global economic growth.
    The Organization of the Petroleum Exporting Countries (OPEC) was formed in 1960 to try to counter the oil companies cartel, which had been controlling posted prices since the so-called 1927 Red Line Agreement and 1928 Achnacarry Agreement, and had achieved a high level of price stability until 1972.

    The price of oil underwent a significant decrease after the record peak of US$145 it reached in July 2008. On December 23, 2008, WTI crude oil spot price fell to US$30.28 a barrel, the lowest since the financial crisis of 2007–2010 began, and traded at between US$35 a barrel and US$82 a barrel in 2009. On 31 January 2011, the Brent price hit $100 a barrel for the first time since October 2008, on concerns about the political unrest in Egypt.

    good luck!!!
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