Valuation
There are 300+M shares outstanding. At .04/.05 a share EXBX is valued at $12-15M. The wells have a stated value of 22.5M total. This is an estimate and is for the life of the wells. Do not confuse this number with annual revenue or annual net income or EBIT or EBITDA, etc. It is a one time, lump sum. EXBX paid 13.25+3=16.25M for them. The value that is left of 22.5-16.25=6.25M won't be realized until the wells have been fully exploited which will take years. Also, there are the costs to extract and sell the product. Therefore this 6.25M needs to be discounted back to today's value and the extraction costs need to be taken out of it. At the end of the day, there may be a net value to EXBX stock price of only 1 or 2 million in terms of total value add to the company which divided over the 300+M shares is a very small amount (fraction of a penny). Since there has been no movement on the other products this is all the value that can be extracted from this transaction in and of itself. The few million that remains is to compensate EXBX for the risk associated with the project. There may not be that much in the wells and EXBX may actually lose money on the deal.
My opinion, the company is currently being valued on the fact that this defers the demise of the company for another day allowing EXBX to possibly develop the software products.
Basically what is now trading is the value of a call option on the future development of the EXBX software product stream. With all the key players gone we need to see how this will go before being able to put a guess on the value of the possibility that these products will be exploited. Expect volatility and any valuation above a few cents can easily be justified based on what is on the balance sheet.
In addition, we don't know what happened to all the other debts that EXBX was carrying. How were the debtors dealt with?
