Kelt has plans for OakOak has a massive land base and is a huge resource. Kelt staff represent the same management team that developed Inga, then sold it off because of a collapse in the entire energy sector. I watched many companies have near death experiences here, and the banks were hostile to the energy patch, and one of the companies i owned they took into insolvency even though it appeared they were solvent.
Selling off Inga with roughly 140,000 acres, and close to 14,000 boe/day of production. Oak is a much larger play then Inga, 190,000 acres. The ability to sell Inga at a time when the bottom was falling out of every energy company is a credit to management and was likely hard for them at the time. Kelts stock fell from $5 dollars to 87 cents over 3 months with the banks being hostile to every energy company.
I really don't like ARX assets because of the postage stamp approach to acquiring land, and not having the significant running room that is required, especially today to establish a major resource play.
It would not surprize me if companies already have interest in Oak, and are simply allowing Kelt to do more work to move the resource forward, so they can justify a more reasonable price. No one on this board know the discussions that might have happened around that asset, and we know that Kelt's business plan is not centered on them being the long-term operator.
So, with longer wells, and better technology Kelt may have a play of interest when compared to the postage stamp approach of ARX resources.
I am OK with drilling more wells at Oak, because Kelt does not need to operate like every other oil and gas company. They have different business objectives. They are learning at Oak and exploiting the resource, trying to create value and deliver a good return for the shareholders.
IMHO