Candax Energy Inc CXEYF

RE: Wellington West report - Calif

[Tinmann]

I read the report... they seem to think CAX is in the "show me" phase right now, and given CAX's history I can't say that I blame them right now. I think you're missing the point of the Wellington report. To me, they're saying CAX can go to 90 cents in a bare-bones base case scenario. Just think of the target increases that could come if the projects start coming up roses. I've been long CAX for a long time and continue to hold on, but I have to admit that I'm in the "show me" camp until I see a well doing 2000+ bopd. Also, at the rates you're talking about, the El Bibane reserves would be totally depleted in 2-3 years... maybe not the best asset for investors to hang their hat for the long run. I think the weighted average realized price is low because El Bibane gas sells for something like $0.45/mcf under the contract terms. That'll put a dent into a weighted average price! Wellington seems to like Candax, but they come across as cautious. Given the history I don't mind a cautious voice at this stage that still thinks we can get close to a buck with minimal upside priced in. JMHO