Substantially Undervalued, O&G Situation in play, page-163

Hi Straykiwi,

I'm more than happy to buy any you want to sell me @ 2.5 cents.

Yes the blockage couldn't have happened at a worst time, markets wise etc.

However the most important thing is that the formation was able to flow at commercial rates, that de-risks the whole project substantially.

3 months from now, people will look back & think what an opportunity I missed.

Price of oil & gas right now is of no relevance to PANR & AXT, yes it will be to a very small degree once they get VOBM#1 online. However everyone else is feeling much more pain from the low prices, the longer they continue the better.

I don't see nat gas being above $2 per MCF from April to early November, that will really hurt everyone, the longer oil stays down the better. I can see the USA rig count getting down into the 500-550 range in the next few months.

It will cause ten's of thousands of old wells doing 1 to 5 bopd to finally be P&A'd as there losing too much money.

Prices will bounce and probably bounce hard, because so few company's will be strong enough financially to fund development drilling, nevermind exploration for a considerable period until there bank balances get a chance to recover.

LOTM