Could be back @ this price in a week things are looking much better and AK land value will continue to grow with multiple companies present!!! ROYL is not alone and there are incentives involved with the State of Alaska.
most recent production for Royale in CA Nov 2012 is 65,552 or 2,184 mcfd, a year earlier Nov 2011 it was 124,663 or 4,155 mcfd...production is 52% of what it was a year ago...stock price is 51% of what it was a year ago. This is an E&P company.....manipulation? how about reality? There is no mystery here...simple stuff.
What is so distressing about their situation is that they are literally" burning the furniture for firewood".If there production was 65,000 a montht that means that the company is only getting half of that number. So the company is selling 33,000 MCF a month or about 1100 MCF a day.
That means they are a making about $80,000 a month after they pay the landowners royalty of around 20%.So that is about $1,000,000 a year in Income. They pay the two presidents $300,000 a year in salary anf the Chairman of the Board another $150,000 or so.
That is $750,000 just for the top three executives. It also looks like they have recently hit some dry holes and not replacing their reserves.
With gas prices going in the tank they are in deep trouble. Alaska will probably be worth something someday - but the country is awash in oil and there are much cheaper places to drill than the North Slope of Alaska. They will be lucky to get someone to drill a test well on their acreage. It could take years to prove up the acreage. I guess they better find someone that will bankroll them. Alaska is a longshot. Many people here think it is a sure thing. The majors out here have the money and the power to wait it out. They could crush Royal like a beer can.
They are way out of their league in Alaska. D