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The Company's cash balance at 30 June 2019 was USD 16.12 million (USD 3.79 million in cash and USD 12.33 million in Financial Assets), which compares to a cash balance of USD 15.55 million (USD 12.54 million in cash and USD 3.01 million in Financial Assets) on 30 June 2018.
Looks like management was pretty smart by transferring about additional +$9m cash into high interest earning financial assets, generating circa $508,000 just in Interest Income (look at 30 June Cashflow statement).
Pro, Good post. De-rampers always use Placing as a last resort to try to get in cheaper. Company has plenty of cash. If folks read Half-year results closely, they will see cash balance was $16.12m ($3.79m + $12.334m).
1) there is still about 4 weeks before drilling season ends. Follow through Heron-1 testing those oil-bearing intervals. Expect further update here.
2) further updates on Gazelle...which could surprise to the upside in a big way in my view.
3) use winter months to get 'Exploitation' licence sorted.
4) negotiate deal with Petro China as one option, which makes obvious sense with substantial cost savings and synergies for both companies.
5) velociraptor postponed (sensibly) to next year, to use that $3m saved for Heron-2,3,4 and Gazelle follow up drills.
Degsy don't come here trying your usual games of deramping to get a cheap entry then ramping the f**ck out of it once you are invested. Those of us that have been around a while are well used to your MO so don't waste your time. Any newbies here Just ignore his posts.
"The derampers (and those who missed out or badly called MATD wrongly - like OilManJim) are going to ignore production, they are going to suggest this is like offshore and will take billions to develop - LOL, they are going to say no cashflow in 2020 - total horse****e - , they are going to lie it will be 2099 before first production - basically they are just going to spout lots of nonsense because either they are just jealous toads who missed out, or they want to buy in cheap so want to push the price down by getting people to sell."
Brilliant!!!! Just Brilliant, to the point, and funny the way its written hahaha. Best post I've read in months, possibly this year. Thank you Proselenes
Proselenes, thank you for your thoughtful and detailed analysis, which is difficult to disagree with. It is valuable in terms of bigger picture, as well as by its very real prospect of further development of the company. It's so nice to realise that there are much more smart posters on our board than idiots and trolls.
The derampers (and those who missed out or badly called MATD wrongly - like OilManJim) are going to ignore production, they are going to suggest this is like offshore and will take billions to develop - LOL, they are going to say no cashflow in 2020 - total horse****e - , they are going to lie it will be 2099 before first production - basically they are just going to spout lots of nonsense because either they are just jealous toads who missed out, or they want to buy in cheap so want to push the price down by getting people to sell.
Anyone talking of the need for a placing - utter nonsense. They cancelled Velociraptor so they are fully funded in 2020 and can get Heron on to production in Q1.
If they drill no more wildcats they can get Heron on production and then pursue bank debt to develop Heron - which means no placings - which means they are in a strong position to negotiate with PetroChina that they pay a big cost to farm in.
EG....they are looking after shareholders interests. One would not rule out a fund raise when the share price is much higher and Heron is flowing well and cash is piling into the bank account, but it will not be below the 10p per share level the Directors purchased bucket loads of shares at imo.
At that stage they will have all new leads and prospects on Block XX, the Raptors on Block V, cash flow coming in from Heron as its in production, farm out done - and so with that strong position, then its time to raise a little to do some exploration drills.
Firstly, the Mongolian PSC terms are one of the best in the world. You can even reclaim the cost of transport of the oil when you sell it......
Heron-1 production requires very little. The plan is either to truck just up the road to the PetroChina facility and offload it, or truck just over the border and sell directly.
PetroChina have expressed a desire to utilise their spare capacity, so its up to them to make a good offer to MATD (low cost) or MATD can truck across the border. Whatever, the cost of transport MATD can reclaim under the PSC terms.
I would expect production flows from Q1. Very little further cost to MATD now for Heron-1 production as production will be trucked from the well head to sale.
First up they need to do the reservoir work and submit all the into to the government to get the Exploitation License awarded. This allows them to go straight on to Test Production (in effect full production but classed as Test for the sake of the paperwork).
So with production now just months away - which opens the bank debt route, and discussions to go on with PetroChina about farm in once the exploitation licenses is approved......exciting times.
Ahead we have :
Next week and the week after - interviews and PR events. Week after that AGM and further update. Heron-1 testing completed, maybe update. Exploitation award. Heron update. Gazelle update. Block XX update, new leads and prospects (expecting some big things from Erdenetsagaan area following Gazelle proving the Strat Trap Play) Farm in discussions. Production planning
Difficult to pinpoint it exactly how much cash they have. We can only go on forecasts.
So if you add on the small extra cost from the delay at Heron and take off Velociraptor, they are funded to end 2020 and will have around 3M cash left end of 2020 based on Heron not flowing and no oil production. EG they can go all next year with zero revenue if they dont drill the Raptor.
Now we know Heron is flowing and they will have production. They will have revenue and this now opens up the bank debt avenue to fund development.
Lets not forget, the Directors ploughed loads of money in for shares at 10p - they will want to see a profit on that.
Which is why the wildcatting is stopped now, focus is on Block XX, farm out, production, revenues coming in. Get the true value of Heron in the share price, the upsides of Gazelle, the upsides of Block XX.
Screw the Raptors for now.......they are not a priority. Cash flow asap is, and farm out discussions. No need for a placing, which is of course upsetting those who desire and want to see MATD share price down and post as much lies as they can to try to get people to sell.......
My first today, hope we're not going to be bombarded with his or her nonsense, I would like to say that this ain't no pump and dump company, not now anyways, we are on our way to becoming a major player in o&g, seen enough of the dribble over on Rainbow during the trade war shenanigans so for that reason "filtered" I know I said I wouldn't do this but there's always one exception to the rule,. GLA
DegsyAlmomd, please do some research before commenting. PetroChina has already gave Matd heads up to use their oil storage facility, which is only just 1km away. Also for your information, Mongolia is vastly under explored but that is all about to change as the Mongolian government plans to boost their own commodity production and become a step up on the global stage.
Very slow and limited process for drilling due to seasonal restrictions which means longer periods to keep the lights on Without doing anything. Many many years and lots of cash away from production. Step out wells. Infrastructure to be build. Permits to gain production licensing. Long long process and lots of cash.
Stop banging on about petro - if they wanted the area / license I guess they would of just got it to start with - they probable happy with what they already have - so a deal with petro is by no means a certainty imo and I am a holder here so not trying to deramp - just dont like constant bs He he he