Thread by @coldy10904

$panr #panr
Short Selling Situation
PANR is a soft target for short selling especially for investors who don’t specialise in the energy sector and especially for a company whose track record, pre-Alaskan acquisition was not good.

Oil company valuations on emerging producers are based on its resources – not earnings or cashflow – its about Net Present Value of existing resources. In simple terms $panr has discovered a very large resource (in the billions of barrels) that needs to be tested

for commerciality which is all normal practice in any discovery – AND it is doing this now. $PANR team is genuinely very excited and extremely enthusiastic about what it has discovered to date

There has been over $300m spent on the project over more than a decade which is a lot of data in which to formulate an informed view by the highly experienced board and management – look at their CV’s.

The project area has been endorsed by the Alaskan Govt which are experts in the petroleum industry. It endorsed the project when it issued $PANR two petroleum units across the Talitha and Alkaid oil accumulations.

The govt would not issue these units unless it believed the units were productive. $PANR has also engaged several independent global experts that have evaluated the area and confirmed its potential. These are just plain facts

$PANR has been very clear that until the project has demonstrated commercial flow rates or strong technical basis for such flows – the speculative component will remain high which is why the val of the company is deeply discounted vs the potential NPV of the discovered resources

Oil exploration is a risky business and not all projects are successful but $PANR’S team has had more success than failure in this area however short sellers just want the bad news.

Operating in Alaska is challenging both logistically and geologically. $PANR is dealing with a new geological play type that it knows holds major oil accumulations in conventional oil reservoirs.

Like all new play types – there is a bit of learning involved and investors need to be patient. The oil reservoirs are tight and need stimulation to produce commercial rates in arctic conditions where flow rates need to be high.

Optimising stimulating techniques for conventional reservoirs will take time & several reservoirs will need to be tested. At times the ANS does not have all the required tools needed to optimise production hence PANR needs to wait for the specific equipment which again takes time

A commercial oil flow rate should convincingly prove commerciality & one would expect these rates will only improve as the $PANR team and its expert consultants which include the largest oil services companies in the world, optimise the production design as more zones are tested/