Kraken Energy (UUSA.C) isn’t wasting any time as just two weeks after receiving the drill permits for its Harts Point project in Utah, it actually started drilling. The initial phase of the drill program will consist of three holes over a 5 kilometer long strike length targeting the Chinle Formation host rock which is more likely to be uranium bearing. Historical oil and gas wells returned off-scale radioactivity so it definitely appears to be a good place to start the exploration activity.
The results of those three holes (which will reach an average depth of around 700 meters) will determine the next phase of the drill program. The company has budgeted C$1M to drill the holes and the existing cash position of C$6.5M means the company will still be in an excellent financial shape after completing the three holes.
Disclosure: The author has no position in Kraken Energy. Please read our disclaimer.
