Petro Matad Share Chat (MATD)

fundraiser222 you keep talking about Snow leopard being a duster and you buying at 5/6p How much will you be paying if snow leopard is a strike ?

Matad only need live oil shows, some gas kicks out of Snow Leopard and we're off and running. A commercial discovery in a basin opener would be tops, but no one with half a brain will sell with some nice shows and those odds are quite good.

Snow Leopard is the amuse bouche, Wild Horse is the real prize.

IMO the result of Snow leopard is not going to make to much difference to the SP . As i believe most are waiting for Wild Horse

I meant char after the placing they did at 13p pre spud like Matd have done, 6p on a duster that’s my prediction

Fundraiser, This is not same as CHAR. AIM investors don't hang about for over 6 months for next drill. Reason Char is stuck in doldrums is because their next drill timeline is I think around end of 2018, could even slip to Q1 2019 in my opinion. MATD is due to Spud in days and these are 4 back to back drills. BIG difference. I know you still waiting for your entry around 6p??? Won't happen imho and you might miss the next Bull run (again) which is coming. Not sure about your obsession with 5-6p ??? We are past that stage now dude.

Until 4th July when the $18m of placing shares are admitted. Tiny volume leading up to spud shows how negatively the market has taken this placing. How many of those $18m placing flippers will hold for the drill results of the first well with a 20% COS.... not many I would suggest my opinion is this follows the same pattern as CHAR certainly looks that way so far, target buy in price for me is 5-6p on a duster for the bigger and better wild horse drill

2010PM Good post. Agree, this is a NO brainer. I think there are discussion going on in the background. As you rightly pointed out, MATD and Petrovis would like a Farm-Out deal on favourable terms here. Previously, when BG farmed in, Oil price was way too low and MATD was not in a strong financial position at the time to negotiate higher price. We know since then, all factors are now in MATD favour with 6 fully funded drills. Another thought, if incoming Farminee takes e.g. 30% equity in MATD, then I would expect Petrovis would be looking to increase their current Holding from 29.73% to say e.g 35% to maintain overall control of MATD. Potential future shareholdings: * Petrovis 35% * Farminee 30% * Private & II investors 35%

Great post as always.

M.Buck has been a serial over-promise UNDER-deliverer, however, it looks like he finally has a grip on things. He would have made some achievable promises to the institutions who coughed up the $18M and who probably have his cellular on speed-dial!

No reason to cry over the spilled milk, raise is done, yet punters wetting themselves puking shares with spud days away. I wouldn't be surprised if next RNS announces well has already been spud with site prep for Wild Horse underway.

I continue to be intrigued by the dramatic shift in RNS language around potential farm-in, maybe a surprise in store? If farm-in soon, Matad won't need to raise capital again until 2020?

Shares sub-10p are a true gift, dumb money is selling at 9.30p.

Morning all!

"As previously announced, the Company has been running a farm-out process which has generated interest from a range of companies, who have undertaken reviews of the Company’s data room. There are currently a number of companies remaining in the process. The completion of this Placing will strengthen the Company’s financial position and thus negotiating position with potential farminees. As there are still a number of interested parties, the Company does not rule out bringing in a farminee, if on favourable terms, prior to the commencement of drilling in July 2018."

Whilst I agree that potential Companies are looking for sure things. The cost of backing into PM even in their improved position cant be that much when you look at the price of drilling offshore.

Look at it this way an Offshore well can run anything from US$30M upwards. The cost of six wells here is say US$33M. Two of those wells we know have a better than 50% chance of success. Surely this becomes a no brainer.

If Gazelle,(15MMBO) US$ 80M NPV add Red Deer (48MMBO) and US$256M NPV plus ......

So next question what do PM want from a farminee for the right to participate?

To me - costs to date, PSC costs, drilling costs 2018/2019 and exploration funding for 2020/2021 (3D/2D and drilling/testing costs) - that then gets PM clear and covered for all and any PSC costs. .

Let say costs to date run to $100m they want to recover, likely NPV of the two prospects mentioned is $336M.

I suspect they will get 30% of the Company and it will cost them $100M. But remembering that Petrovis wont want to loose control one answer maybe creation of two different shares classes - voting and non voting.

In any case just a few thoughts!

Best of luck all - Ham, D1inger, OJ, Maestro, Mr P, Loz, One rule, Paul, Manro, Bucc and many more!

If it’s the 9th, RNS does say the WEEK beginning the 9th

7 trading days to spud.. Fill your boots

It's the only position.
Interested parties are only looking for hugely de-risked prospects these days.
However, there are likely numerous companies (there is no cost to them in leaving their interest) and a strike would cause a bidding frenzy.
I hoping that a deal will be struck during the first drill (as its a long period) based on all the 3D data and they are not waiting for any strikes on these drills, which is more unlikely on this 2D drill prospect than others.

It's a better position to wait until after drilling results are in before farming out (unless it's a dud). Companies will pay a lot more know there's commercial oil.

Noix, Spot on. Well said. Was about to post similar results. Estimated barrels more than doubled from 400MMbo to 850MMbo after 3D for just the targets highlighted so far. Upside case for same drill targets is circa 1.25 Billion barrels. Think there could be even more targets highlighted from the ongoing 3D analysis.

"Afterall nothing much has changed (or happened) since all this 'potential farmi-in' bs started...."
I'm sorry to say the facts state otherwise Hoof.
MATD embarked on a 3D seismic campaign, very much at the request of potential farm in partners and as a result it has uncovered the Fox prospect with potential of 200MMbo for starters. Wild Horse prospective resources have increased from 290 MMbo to 480 MMbo and Red Deer, within the southern portion of Block XX, has been identified as of interest to other parties, with prospective resources of 48MMbo.You would have to be quite a bear to state that potential farm in partners wouldn't be impressed by these new findings.

Aye, desperation does that to individuals :-)

GKahn's post makes a lot of sense and I clearly agree with his logic relating to the second placement. Time and again people on this board question or rather roast PM's management decisions as if their only objective were to butcher the PIs. I guess it's the arrogance of those posters who claim to know better what decisions would need to be taken to lead PM to success - claims which I find extremely bothering and incomprehensible; particularly in the light of their limited short term investor views.

Again: I understand that a lot of those posters are very much frustrated that their short term investment strategy has not panned out. It appears that their last resort is to put the blame on those who have the say - and know better.

It may be best for those to just bail out and forget their PM investment. I for one would be very happy for them.

HoofHated, How has the deal become expensive? Current MCap of £61m (using 662m shares) is peanuts, c.46% of which is in Cash alone. They are in strong financial position now with 6 fully funded drills Vs last year when MCap touched £110m. Success at Appraisal wells at Block XX could bring in quite a significant amount of Cash also.

Institutional investors do not mean Barclays Bank, you have to understand market mechanics, institutional investors basically means brokers who take the placing then offer it to their clients. Those who agreed to the placing without cash in the bank to pay for it then borrow stock and forward sell it, usually for a profit but the sentiment is so poor for Matd after years of screwing investors that they are forced to sell for a small loss, you win some you lose some all imo but the selling will continue imo up until settlement date on 4th July hense why I see that as the low point perhaps around 8.5p intraday low imo

if theres something to thankyou for,twas that warning....and mikey posting the co. words on it....because ive powder waiting as I believe many do,no it wont stop it from going down,it will give oppty to buy more then,than today...more bang for the buck

A great deal has been posted on the flippers being responsible for the selling and share price weakness. This makes little sense to me. Why would institutional investors, who were positive on PM’s prospects at 10p, become significant dumpers of shares at a loss within a matter of days/weeks. Is it not more likely that traders, who bought in the timeframe between the two placings in the expectation of a significant increase in the share price leading up to first spud, became disappointed because of the impact of the placing; but nevertheless are selling at a profit.

I do not accept the argument that it was wrong of management to proceed with the second placing because the company was fully funded for four wells. To have done so would be catering solely to the short term traders to the potential detriment of PM's long term interests, particularly bearing in mind that any fundraising after drilling has started would be subject to frequent if not continuing close periods. Irrespective of the 2018 drilling results, to have ended this drilling season with little cash and the need to raise significant new funds for 2019 exploration, would have been unacceptably risky. With the second placing the company has bought time, flexibility and operational synergies.

GKhan

@Mr P.....re: "The completion of this Placing will strengthen the Company's financial position and thus negotiating position with potential farminees. " Whilst l think your 'financial position' thinking of this Co may 'sound' good in post here....however, in reality at the negotiating table, any potential farminees may also view the deal as getting more expensive and even harder to negotiate a buy-in atm. If they wouldn't, or couldnt, buy in sometime in the past then Matad's 'strengthened' position now may not necessarilly be an advantage at all. Afterall nothing much has changed (or happened) since all this 'potential farmi-in' bs started....

From 13 June RNS.., "As previously announced, the Company has been running a farm-out process which has generated interest from a range of companies, who have undertaken reviews of the Company's data room. There are currently a number of companies remaining in the process. The completion of this Placing will strengthen the Company's financial position and thus negotiating position with potential farminees. As there are still a number of interested parties, the Company does not rule out bringing in a farminee, if on favourable terms, prior to the commencement of drilling in July 2018." ...key is favourable terms...and rightly so.

I think any potential Farm-In partner will take care of the $5m refund. It won't be an issue to strike the right deal terms in my view.