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Fair Analyst.
Kill the messenger/ Kill the message. Your predictable, but continually disappointing.
Your DQE position is likely to become untenable shortly, and with it, you will also likely disappear.
You energy may be better served understanding the companies current shareholder issues.
Read about the OT deal. It may help you understand major projects and multi billion dollar stakeholder engagement.
One month since the last Operational Update (5th May was the last one). I'm sure all investors would appreciate some newsflow, be it news of progress on permitting, arrival of equipment on site, developments on DQE partnership talks, signing of contract for Heron-1 workover and re-completion, etc etc
My feeling is things will pick-up for PetroMatad once they have brought Heron-1 online, I would assume once a solid revenue stream is established they would be able to get a bank loan against the Heron income stream + reserves report for further expansion after that... Possibly even look at bringing in an out-of-country drilling contractor if needs be to get things moving if the DQE partnership doesn't work out.
I'm not seeing how running out of money is a concern at this stage as they haven't completed their initial work commitment yet plus we are not significantly beyond the original on-stream date for Heron yet. Plus I don't think Petrovis would be too happy having to fork out more if they had nothing to show from the last bundle of cash provided.
AIMHO/DYOR
MATD isn't even recognised on here so I doubt it - https://shorttracker.co.uk
I think the main focus is on completing the new railroads (TT-Zuunbayan, which links to the border at Zamyn-Uud; TT-Gashuun-Sukhait, which will in time should include a spur to OT) and the new one from Zuunbayan to Khangi. A lot funded by futures on coal.
The GoM is finally catching up on a 10+ year old plan to smash as much coking coal across the border as feasibly possible. Makes sense.
The refinery will probably never make money (GoM subsidises fuel prices to some extent), but it allows Mongolia some energy independence, and maybe a smidgen more political freedom, from China and Russia. Why are the Indians funding it if not a big FU to China?
After much wrangling, the money for the pipeline will be Chinese. The upstream is all Chinese at the moment; it makes me wonder how keen the Mongolians would be for PM to tie up with PetroChina unless I'm completely wrong about the energy independence. Mongol Refinery itself is starting oil exploration (more pressure on drill availability) but they will need a lot of outside support to make that happen.
The GoM just had OT wipe out a $2bn+ loan owed by the state which creates a huge space on their capital account. Bowley was involved with that so you can ask him for more details. I'd guess their success here has given them the confidence to push for the PetroChina reforms. The Indian funding seems unlikely to fully cover the eventual cost of the refinery so it will be interesting if they can sell futures on the oil in the same way as the coal.
All of this is a bit irrelevant to PM sadly, who just need to secure a drill before the latest cash runs out.
Would be nice to get an update on the non-drilling contracts that are required to get Heron 1 active too.
Do any brokers allow shorting of penny stocks like this?
Is it even possible?
Thanks for this i find the whole thing slightly fascinating. It seems that China or rather Chinese companies are the unwanted guests that will just not leave. And they (Mongolia) cannot be rude about it and tell them to get out because they live in the big manor house down the road.
My opinion is that we are currently on the back burner whilst the PSA contract issues get ironed out. I hope that it will be clearer after the working party reports circa 20th June and that then we can firm up plans with DQE.
Some background on the review of the PSA. Article dated 19.05.22
At yesterday's Cabinet meeting, a working group was set up to review the production sharing agreement with PetroChina Daqing Tamsag, which has transferred the rights and responsibilities of the PSA to Toson-Uul-XIX and Tamsag-XXI. The working group will be chaired by the Deputy Prime Minister and will be presented to the Government and the National Security Council in 30 days.
In any case, thanks to our articles and programs, the government and the National Security Council have begun to pay attention to the activities of Chinese companies that do not comply with the law.
The Minister of Mining and Heavy Industry made a presentation on “PetroChina Daqing Tamsag's contract and the supply of raw materials to the refinery. There is a need to intensify oil exploration and production. Oil production began in 2012. The highest annual production is 1.1 million tons. The field is planned to produce 1.5 million tons of oil per year. However, this number has been declining recently. The construction of the refinery was estimated to be 1.5 million tons per year, in line with PetroChina Daqing Tamsag's plans to develop the field at the time. During this period, two trillion MNT was transferred to the state budget. Approximately 200 billion MNT has been allocated to the budget in recent years.
PetroChina Daqing Tamsag is operating under a production sharing agreement. We have to understand the position of the Chinese side, because we are going to sit on both sides of the table to sign an agreement. Article 5.2 of the Civil Code of Mongolia stipulates that the terms of a contract shall be valid if the newly adopted legislation is detrimental to the rights and legitimate interests of one or both parties to the contract. "As the refinery is about to be commissioned, we will gradually support PetroChina Daqing Tamsag's efforts to increase production capacity, adhere to field development agreements, and conduct exploration in areas where oil reserves are likely to be discovered."
If you read the Minister's words carefully, it will be understood that the Chinese side is silent on only one provision of our Civil Code when it comes to improving the "Production Sharing Agreement" and bringing it into line with the law. So, the question arises as to why in the past it was not possible to clean up such barriers and make necessary changes for the benefit of the country and the people"
https://news.zindaa.mn/4703
Latest on the refinery...
At the Cabinet meeting on May 18, 2022, a working group chaired by the Deputy Prime Minister was established to review the production sharing agreement with PetroChina Daqing Tamsag LLC and resolve issues related to its renewal in accordance with relevant legislation. The working group met yesterday / June 3, 2022 / and the Minister of Mining and Heavy Industry G.Yondon gave information. He said, “Mongolia first passed the Petroleum Law in 1991 and started conducting exploration. As a result, more than 40 million tons of proven reserves have been discovered. Thus, since 1993, Toson-Uul XIX and Tamsag XXI fields have been mined and exported to China. According to the agreement, Mongolia must receive 40 percent of the total production. However, due to the fact that 40 percent of the total production is deducted by the Chinese side from “Cost Oil” or cost recovery, Mongolia receives only 24 percent of the total production.
Until 2022, Mongolia has exported a total of 9.5 million tons of crude oil. It is also estimated that 1.8 million tons of oil products are imported annually. Therefore, the construction and commissioning of an oil refinery is a priority. ” He also said that there is an urgent need to conduct oil exploration, increase production capacity and build an oil pipeline during the construction of the refinery.
During the meeting, Deputy Prime Minister of Mongolia S.Amarsaikhan made a realistic assessment of the implementation of the agreement with PetroChina Daqing Tamsag LLC. The members of the working group were instructed to study the benefits of government.
https://news.zindaa.mn/47ut?fbclid=IwAR2aiIT8s9zdxoU6uQKb_pbCxLont9P4hR5ont_TxDD3_Wr9Srb0O4XIpsA
"Mongolia's new refinery, planned for completion in late 2022" - Really? Exactly the same ugly lie as the chatterbox and scammer CEO's announcement about oil production in the 2nd half of 2022.
June 22 2018
Thanks Jimithebush
That looks like an old article
When was it dated?
Everyone must be enjoying the Jubilee looking at all the carp on here.
Maybe finally PM has started to interact with locals by doing something positive for the locals.
"As the central landfill is being cleaned by Petro Matad, one person from each household will go out and pick up the garbage from the straw bales on the weekend of June 4, 2022.
Come with paws, sacks and gloves. Every citizen, organization and business entity should actively participate !!!!.
This garbage is our garbage for many years. CITIZENS believe that one day they will spend for their health, safe and clean environment. We also hope that people will work together for one day in their private trucks.
.You guys are worried about this land and water, so let's start by cleaning up the garbage !!!! We have this powerful technique and we all need to get rid of a lot of garbage together
Yes, this is good news. But, for crooks and loafers it doesn't change anything. After all, they not only don't want, but even unable to solve the simplest tasks, including such a primitive one as finding a drilling company.
Ostraliamate
To invest money in a company of crooks and becoming more and more convinced of this, but avoid to tell the truth, fearing to lose money it is the behaviour of ostriches or the same crooks as the company management is. And all this deception and swindle happens are happening for that simple reason that many of the investors are either ostriches or the same liars as most of the heads of AIM companies are. So, it's up to you decide who you are.
Another day and another Commodity skyrockets to fresh record highs. That’s one of the most exciting trends of the current Commodities Supercycle that we find ourselves in right now!
Commodity prices across the board from the metals, energies to agricultural markets started the week on an absolute tear as China – the world’s second-largest economy and biggest importer of Commodities – officially ended a two-month lockdown on June 1.
https://www.fxstreet.com/analysis/commodity-prices-surge-as-china-emerges-from-covid-lockdown-video-202206031125
Let me ask this of the people on here who obviously know Mongolia well and its government.
This refinery must cost millions to build and that would only be the budgeted cost the real cost could be even higher. How are they planning to pay for this surely with oil over 100usd a barrell and not looking to come down any time soon it would be best to get some of this oil to the market now even though a chunk of the profit would go to China just to help pay for this massive cost.
More likely that some people should be certified.
Let me know when you say something humorous and I may laugh. Cio 4 now
Ah OK think you need more time out on your moped.
Biker your first post on here?
How do you think the sp might react on positive RNS ?
Guys don't fall for the deramping. We are going to have Heron on production this year and drill 2 or three other wells. The border is opening up, the land issues have been resolved and the oil is still there, updip and high quality.
Nothing the usual complainer brigade can dream up in cyberspace will change these realities.
My gut feel is we will drill 2 Heron wells , put Heron 1 on production. The wildcard is a drill on the Raptor trend which I think could be on the cards if the DQE deal gets done on reasonable terms for us.
This is in my opinion how I see the rest of the year rolling out. The board is pushing hard and contrary to the rubbish that gets thrown up here at times the fundamentals haven't changed, if anything the story gets better.
RNS hopefully put next week or so. You don't want to be out when it comes in.