pantheon again up., page-16

Rogar,

AXT's investment in Pantheon has the potential to be very lucrative.

Pantheon currently has a market cap of ~A$25m

Pantheon and its JV partners are about to embark on a significant drilling program to prove up the Woodbine liquids play in East Texas.

Each Horizontal well has a NPV10 (mean case) of ~$A200m

The No of wells is 17.

The JV has upgraded the Woodbine play following an analysis of data from 2,500 Woodbine wells, over 2,600 miles of 2D seismic and the acquisition of 3D seismic over producing Woodbine wells.

Panr has a 25% interest in this.

Thats about $850m NPV to Pantheon ( assumed all drilled together)

But even upon success of 2 wells PANR should be trading +100p equating to a very liquid value to AXT of $11m cash.

Thats about 12c per share in cash backing....

Upon success i would imagine that AXT could pay out a nice capital return to shareholders well in excess of current levels.

Coupled with that the current board after speaking to the MD are reviewing numerous corporate opporunites.

Yes Intercept Hill hasnt been fruitul, that was determined years ago when the JV was farmed out...

Next 6 months could be very lucrative