For any newbies or those that didn't pay attention before, the...

For any newbies or those that didn't pay attention before, the Double A wells field is kind of unique.

You can find my research links on the other PANR thread (on ADVFN) if you want to research it yourself (they alone will save you 50+ hours of time).

The field had 59 productive wells although @ 50% of production has come from just 10 of them. Some of the offsets to these highly productive wells had virtually the exact same well logs yet were very poor in comparison.

So the field had sweet spots.

2 other things to take note off from the available public files.

AOF tests (absolute open flow - where the well flows unrestricted for a short period of time to record max productivity [wells are never produced at anything like that rate because it damages the formation]).

Some of the wells in the Double A wells field had very high AOF's I noted one near 100 Million cubic feet a day, another around 46 million and one about 38 million. Yet no well was ever produced at more than 17 million cubic feet a day.

At the same time I've seen wells in the field whose AOF's were under 2 million cubic feet a day and would like marginal at best (depending on the nat gas price that year) which once they've gone into production actually produced at 5 or 6 million cubic feet a day. In otherwords they cleaned up and improved over time for some reason.

Secondly some wells started out at nice production rates and yet after only 3 months or so production declined rapidly, it would then level off for a few more months before again declining rapidly once more.
On the other hand some of the wells saw very little decline in production for many months & even when they did decline they did so at a slow rate.

Once you factor in all of the above, you can easily see why they would want to do a long test on a potential new field. Much better to have lots of data points rather than the few that occurred on the Double A wells field. Otherwise they might look foolish a few months down the line.

For the record I don't own or have any direct interest in PANR. I do however own some Australian listed AXT, whose only asset is some 7M PANR shares. Nor does the above mean the well will definitely be commercial.

Interesting times ahead for sure

LOTM

PS I have changed my rating back to a buy, as the current share price is at far too big a discount to the underlying asset value