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Share Views Episode 9 - Early Stage Investment Opportunities


Petro Matad Share Chat (MATD)



Share Price: 2.50Bid: 2.45Ask: 2.55Change: -0.025 (-0.99%)Faller - Petro Matad
Spread: 0.10Spread as %: 4.08%Open: 2.525High: 2.525Low: 2.50Yesterday’s Close: 2.525


Share Discussion for Petro Matad


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rifteastafrica
Posts: 522
Off Topic
Opinion:Strong Buy
Price:2.50
RE: Gov approval
Today 12:09
My guess is based on a regieme i worked in smaller than Mongolia. Government sessions come into force and vote in all the things that have built up over the recess period.
Thats my guess and my 33,333 trades can be seen over the last week. (I'm putting my funds where my mouth is)
PLus the current discount to cash (i know your view on cash but if you want to go on barrells in the ground Risked NPV valuation we'll inevitably end up at a much higher valuation than cash, so thats why i look at cash in bank treasury versus market cap as a worst case scenario) is enough for me to put money where mouth is

Approval next week is an educated guess. This is an assignment of a licence already in operation, this is NOT Government approbation of a new PSC, which can take a lot longer. I think it is purely administrative and will be done next week as parliament re-convenes 01 October
 
fundraiser222
Posts: 1,164
Off Topic
Opinion:No Opinion
Price:2.50
RE: Gov approval
Today 10:46
I very much doubt the approval of the licenses is at the top of the government agenda, it's just an admin issue and will be in a large pile of papers no one knows when it will be dealt with it depends how busy they are but one thing is for sure it will not be at the top of the list imo governments take a long time to approve anything it will be dealt with but this is Mongolia remember that rift we don't want to encourage people to buy with false hopes that just creates negativity wait for 2017 imo things will start moving then hopefully until then matd is not going anywhere Fast imo
Thelithanater
Posts: 85
Premium Chat Member
Off Topic
Opinion:No Opinion
Price:2.50
RE: Gov approval
Today 10:15
How do you know it's a couple more days?
rifteastafrica
Posts: 522
Off Topic
Opinion:Strong Buy
Price:2.525
Gov approval
Today 08:41
Couple more days! $5,000,000 $$$$$$$$$$
D1nger
Posts: 303
Off Topic
Opinion:No Opinion
Price:2.525
View Thread (4)
RE: Potential
Mon 13:45
Afternoon Johnlatocha12, here is something I posted about Matd a little while back, it's still relevant today and may answer some questions you may have.

In 2013 and in their own words MATD took a "calculated risk" and invested in obtaining an additional 65km of seismic data in block IV which confirmed a "three way dip closure on the downthrown side of a major strike slip fault with possible recoverable reserves of 60 to 100 million barrels oil". Block V also revealed a site with possible recoverable reserves of 22-24 million barrels of oil.

This is a possible 120million barrels of oil with very little or sparse exploration of their acreage. MATD themselves have referred to their acreage to be comparable in size with the entire licence area held by Tullow Oil across the Kenya rift basins. (Tullow oil's current market cap is over $2billion)

BG group were obviously encouraged enough by these results to enter into a JV with MATD agreeing to pay MATD's share of a $28m, 3 year work programme in exchange for 78% of the licences.

As a result of this investment, blocks IV and V have been subject to extensive seismic, high resolution aeromagnetics (HRAM) and full tensor gradiometry(FTG) exploration. The results of these surveys have had Matd using words like "exciting" and more recently "very exciting" in their updates and that they have identified a number of viable drilling prospects as a result.

BG group were bought by Shell in 2015 and in April 2016 Shell announced they were exiting the JV agreement with Matd as they were streamlining their portfolio.

As a result of this Shell have agreed to pay $10m compensation and a further $5m to assist Matd in meeting their work agreements. Further to this Matd assume 100% ownership of the licences.

In the last RNS the chairperson announce that "The cash to be provided by Shell will enable the Company to continue its planned work program culminating in exploration drilling next year."

So in summary

100% of Licences to blocks IV, V and XX.
Over 60,000 square kilometres acreage
Over 18000 square kilometres potentially prospective basins
Extensive FTG, HRAM and seismic surveying nearly complete
Results of surveying very exciting
Drill sites identified
$15m cash compensation
Far better position than when BG entered JV
Mongolian company operating in Mongolia with apparent support of Mongolian Government
Matd are an exploration, development and production company and state there is a great level of anticipation and optimism with staff and stakeholders in the potential of the company that a successful drilling programme would bring.

Dyor. Gla
Johnlatocha12
Posts: 47
Premium Chat Member
Off Topic
Opinion:No Opinion
Price:2.525
Potential
Mon 13:18
I've been doing a bit of research on the Petro website and looking for previous RNS announcements. Block V and block 1V looks the focus and obviously with enough prospectivity to get shell onboard. I can see cores have been drilled testing the source rock, reservoir and cap rock. No prospective figures are mentioned though. Does anyone have a rough idea what sort of range this is going to be, in regards to prospective oil in place. Is it in the millions of barrels or is it a big play than that.
rifteastafrica
Posts: 522
Off Topic
Opinion:Strong Buy
Price:2.525
RE: Discount to cash monitor
Mon 10:32
I like buying pounds for 64 pence
D1nger
Posts: 303
Off Topic
Opinion:No Opinion
Price:2.525
RE: Discount to cash monitor
Mon 10:19
Are you on a buying frenzy today rift? 😜
rifteastafrica
Posts: 522
Off Topic
Opinion:Strong Buy
Price:2.475
Discount to cash monitor
Mon 09:25
Huge discount to cash with two oil drills to boot. Laughable short terminism!

Shares in issue 287,494,775
Share Price £0.0250
Current cash £7,518,797 (10 million USD)
Cash per share £0.0262
Cash to come from Shell £3,759,398 (5 million USD)
Cash per share to come from Shell £0.0131
Total cash value after Shell payment £0.0392
Current Mcap £7,187,369
Cash after Shell payment £11,278,195 (15 million USD)
Current share price as % of future cash value 64%

Discount to cash 36%
D1nger
Posts: 303
Off Topic
Opinion:No Opinion
Price:2.475
View Thread (2)
RE: £7m mcap
Sun 09:54
Morning tradeemup. In my opinion Matd are not poor at communication but it appears to be that people are poor at reading the information provided by Matd.

For example when Matd needed a JV partner in blocks IV and V it announced that it was actively seeking a partner and continued to announce it was seeking a partner before the deal with BG group was announced.

Now Matd and the chair person of Matd have repeatedly said Matd are financed to complete the work commitments on blocks IV and V which includes two drills yet this continues to be questioned as does the need for a JV partner when Matd are clearly inferring they don't need one for blocks IV and V.

Matd may need financial assistance to complete their work commitments on block XX but the petroleum authority of Mongolia have granted a one year moratorium on this so its not a priority at present.

The extra $5m and return of the license is subject to approval the Mongolian government which as one of the other posters has pointed out doesn't reconvene till the start of October.

Matd have made us aware they are still analysing data received on block IV and still collecting data on block V. Matd are pretty good at posting operational updates when data is available.

Yes £7m mcap is bargain bucket time in my opinion.




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