AAPH 2010: Do we have a multi-bagger here?
This is my view on where the stock could be going
Consider their Rooney Project (they have 5 projects, 3 in Kansas, 1 in Texas and 1 in California)
1. Oil is expected to flow as of January 1, 2010 from their successful 200 barrels of oil (BOE) well on the Rooney Project
2. Based on this single well the estimated reservoir size: 500,000 barrels of 44 degree oil - a top-dollar resource
3. AAPH are planning to and will be drilling several (possibly 10) step-out holes on their successful Rooney Project
4. If the 2nd hole hits I believe we can expect their projected earnings will go up 5 fold!
To project a little:
- If AAPH does prove out this field with a total of 10 wells --
-And each well produces roughly the same flow rates (200 BOE). (Note: Myunderstanding is that the drillers and engineers do think this is avery real possiblity.)
- Note also that $35,000 per flowing barrelis the industry standard for this type of reservoir if it was beingpurchased for cash by a major oil company.
- It could mean:AAPH is sitting on 200 flowing barrels a day, which, over 10 possiblewells could be 2,000 flowing barrels a day. Consider then that underthis scenario, if this field was purchased by a major, then AAPH wouldreceive 2000 X $35,000 or $70,000,000.
- to add to the feverany investor would be feeling at this point let's take this one stepfurther: 500,000 barrels x 10 wells potentially is 5,000,000 barrels inthe ground resource. - these assumptions may be low.
5. Nowtake a look at the price and shares outstanding. Do theshare-value-math for his immanent multi-bagger - it should make you aserious buyer today - IMHO.