HK has maintained 40,000 BOE/D since October and that was through a harsh wither up in North Dakota.
The HK production rate sustains a $1B revenue and process improvement and connection to pipelines as infrastructure gets established will save the company an additional $1.50 per BOE this year to the "NET" income.
So lets summarize by Net Revenue Interest in each oil play.
FBIR= Fort Berthold Indian Reservation
Will = Williston basin
TMS = Tuscaloosa Marine Shale
FBIR has 801 MBOE per well expected with NRI of 55%
TMS has 792 MBOE per well expected with NRI of 51%
El Hal has 452 MBOE per well expected with NRI of 53%
Will has 477 MBOE per well expected with NRI of 65%
So 12 rigs drilling today @ 1 finish per month is 144 wells per year
Any Net Revenue Interest 50% and above pays off 2X (two times) the cost of drilling the well.
So HK is drilling 140-150 wells per year and doubling income with each well.
That pays off a lot of debt.
If you are an investor it appears you'll get your money back in a hurry.
What would you rather have no debt or $1B in revenue doubling with each well drilled?