Depends if Shell decide to pull the plug or not. They are cutting costs and scrapping projects all around the world, if Mongolia doesn't fit they will imo scrap it. Then MATD will be left with no JV and no money in one of the worst oil markets ever seen so this investment is very risky aswell as no action for 18months. lets face it they were suposed to drill in 2015 and it just keeps getting put back, and looking at the intirims MATD will not have enough cash to last now untill 2017 imo so a placing may also be needed imo. Just an awful RNS
Bottom draw for me. I'm still confident there is mileage in this share. As Isaid before "Good things come to those who wait". Just hope i'm not in a box approx 6' 4" long and approx 2' wide by the time pay day comes!!!
fully agree, but imo the price will just drift to well under 2p now as its just been put to sleep for 18 months what a joke when you consider the first drill was supposed to be 2015 the postponed to 2016 now its 2017, so what will happen MATD will run out of cash? Shell will just axe the project? or drilling delayed in 2017 to 2018? so hard to sell MM's don't want to buy any off me atm may have to wait a few dayts and sell in small chunks
Petro Matad said it has completed its seismic data acquisition for Block IV at the project, but will now postpone collecting data for Block V and will start again in May.
Due to that delay, it now plans to start drilling two exploration wells at the project in 2017, rather than in 2016, as had been previously planned.
Shares dropped 20% to 2.5 pence on the news, the worst performer in the AIM All-Share.
Petro Matad said it remained confident in the project and said drilling the two wells back-to-back in 2017 will result in operational efficiencies for the business. It also said the availability of drilling rigs, amid the slowdown in activity in the oil and gas industry following the oil price plunge, makes it likely it will be able to secure drilling rigs for the project at a lower cost than had previously been envisaged.
that's my point the price will tank as no drilling for at least 18 months, and MATD do not have enough cash to last that long imo, plus Shell are axing projects all over. I have sold a few already and will try sell more as under 2p looks nailed on now imo
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