The news today certainly beats a poke in the eye with a sharp stick, but those wondering why the stock isn't reacting in a more positive fashion should keep this in mind:
They own just a 2% royalty interest in this well. Let's do the math:
Suppose this well can produce 500 barrels a day. Ok...
500 bbls. X let's say $18/bbl. That's $9,000 a day. Now let's take out the mineral owner's cut. I don't know what it is up there, but here in Texas it's 1/8 right off the top. So, our $9,000 a day becomes <$9,000 x 7/8> or $7,875/day. AXPL gets 2% of this:
$7,875 x .02 = $157.50 per day. Yeah, that's right, $157.50 a day. Now do we start to see why everybody is yawning? And that's assuming a 500 barrel a day well, which is pretty optimistic. It's going to take a lot of wells at 2% to start adding up to serious coin. Now, if they can do some where they have a bigger piece of the pie, that's another story. So, bring some of those kind on. |
