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1.4¢ argo exploration limited

LOTM Pantheon is the stand out Oiler in global markets given its...

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baukaw

3,539 Posts.

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13/12/15

18:59

Post #: 16604673
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Originally posted by Last of the Mohicans ↑

Time for a little reflection at the start of a very important event for AXT.

The testing of VOS#1 in Tyler County by PANR & its partner Vision.

I would like to continue the "substantially undervalued O & G situation" thread I started back on 6th July 2015, because it has all the data showing how we all arrived at where we are today and are headed in the future.

However I thought it was worth looking back to see what's been achieved over these past 5 months.

The VOBM#1 Well in Polk County has been successfully drilled in it's mini-basin and tested over 6.1 MMCFGD & 504 Barrels of oil a day (over 1,500 boed) and will enter production around February 2016. The new field discovery is called West Double A Wells field.

The VOS#1 Well in Tyler County has been successfully drilled to total depth in its separate mini-basin, having encountered an unexpected oil & gas zone at 12,600ft. It also had oil & gas shows in its primary & secondary targets. Testing of the primary Eagleford/Woodbine sandstone starts this week.

These 2 successes appear to show that London listed PANR & its private partner Vision have unlocked the code to finding Double A Wells field look-a-likes. Which is transformational, as can be seen in the PANR CEO interview of 8th December 2015.

Even if the oil price drops as low as U$20 a barrel, they will still be able to make a U$8 profit on it! How many other oil & gas company's out there can say the same?

Oil & gas company's are struggling all around the world to try and maintain profitability in a $40 environment, as the sector continues on the boom to bust cycle that keep's repeating itself.

These unique low cost discovery's will allow PANR to easily ride-out the bottom of this cycle and will give it vast upside potential when the next up-cycle begins as the profit margins on these locations will be massive. An asset many will envy & want to purchase.

It's worth noting that the near 60% discount to the value of those 7 Million PANR shares that was occurring back then has narrowed substantially since. Back then those PANR shares were worth A$3.3M today they are worth A$17.5M, (having peaked at just under A$20M)

AXT had a market cap of just A$1.84M back then, its now A$15.84M (or just short of A$15M if you deduct the A$0.86M raised in the placing). The share price has gone from 1.4 cents to 10 cents today.

AXT has reaped considerable rewards in these past few months for its perseverance in continuing to hold onto its 7 Million PANR shares.

Things are about to change again with the testing of VOS#1, commercial success will result in considerable additional value being placed on PANR, given that the pre-drill estimation for the mini-basin was that it could support 34 wells to extract @ 52 mmboe from the Eagleford/Woodbine formation alone. There are thought to be 42 Austin Chalk locations at the Kara Farms mini-basin.

So sit back, relax, fasten your seat belt and get ready for what should be a fascinating ride...................

Making AXT effectively a very interesting large cash shell with a tight share register going forward.

LOTM

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LOTM

Pantheon is the stand out Oiler in global markets given its low opex and capex and exceptional reservoir characteristics.

Depressed Oil prices should ensure drilling costs remain very low...allowing Pantheon & Vision to drill numerous holes for low cost whilst building reserves.....

A potential upswing in Oil prices in late 16 early 17 could position Pantheon with a very strategic reserve as majors seek M&A opportunities.

Lets wait & see how VOS#1 flows in the short term to determine exactly what the JV may have.

AXT Price at posting: 10.0¢ Sentiment: Buy Disclosure: Held
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