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https://drive.google.com/file/d/1DV9BrTKQYh3QhWWhrmaFhyrKrdUaN6dJ/view?usp=drivesdk maybe this will help with numbers?
It possibly is drivel, as I don't have a huge understanding of small oil exploration stocks. However, plenty of articles online which seem to suggest $50 per barrel is fair.
He is a recent study on the breakeven costs of oil per country:
https://knoema.com/infographics/vyronoe/cost-of-oil-production-by-country
We all know Saudi Arabia is the cheapest producer, but it seems to vary a lot. I was just keen to work out what is the cost per barrel for MATD?
And ultimately the most important question, what is their margin/profit per barrel from which we can work out what MATD could be worth?
Hmm good question actually , I’m not sure either what are the costs per barrel, I would hope it’s less than 50$ though - quick search:
Conventional Oil
Conventional oil production generally refers to the pipe and pump production off a vertical well. This means a hole has been drilled straight down into a deposit and a pump jack is put on it to help pull the deposit to the surface where it can be sent on for further refining.
The cost-per-barrel of conventional deposits varies, with Saudi Arabia able to produce oil the most cheaply, sometimes under $10 a barrel.2? In the Middle East, non-producing onshore fields can produce oil for less than $20 per barrel with an average of $31.1?
How do you reach 50$ a barrell i have not seen this sort of number mentioned it would in my opinion make this well very marginal especially witht the royalty and taxes that will need to be paid to the Mongolian govt.
A quick look suggest $50 a barrel to produce! Can you explain this valuation!! Absolute drivel
Hi girls/guys,
I took part in the fund raise in July at 3.5p per share. I'll be honest, this was complete punt and I only put 2% of my portfolio in it without hardly any research. Because it is such a small part of my portfolio, I haven't spent any time keeping up to date with it, other than the odd cursory look at the share price every so often.
I see it has drifted some 20% lower (this does not bother me, as I know how stocks like MATD behave) but thought it about time I do some more reading up on it ( I have also had a read through some of the comments on this BB).
So, I can see that MATD says it can pull 60 million barrels out of Heron. Oil is c.$80 per barrel, but a quick look suggests that it costs approximately $50 dollar per barrel to get it out of the ground and refine it. I appreciate Saudi Arabia are more like $10-15, with the US and Canada somewhere in between. However, if we call it $50 cost per barrel, that leaves $30 per barrel profit. at 60m barrels x $30 = $1.8bn (£1.3bn).
One thing I can't find is the licensing costs, but even at a smallish P/E of 5x, there appears, on the face of it, potential incredible value.
I recall Rockhopper Exploration, going many multiples higher, but it seems like at 2.75p per share MATD represent a great risk/reward bet.
Can anyone please tell me if I have missed anything (from a very high level perspective)?
Appreciate your thoughts, and please be kind!
And yeah if we can get a rig I would expect 7p on spud with this oil price, who knows
Agree - but only if PM's operational schedule for 2022 is called off. Doesn't look like that will happen.
You have absolutely zero accountability for refinery costs here? Going to be a long hold here and with any luck we may see 7p again in a year or so.
PMSL
Just some food for thought assuming 4 wells producing a modest 400 barrels a day
400 barrels a day @$80/ barrel x 365 days = $12,000,000 USD per well
4 wells = $48,000,000 USD/ year.
Fully funded into development
66 million barrels @ $80 a barrel = $5,280,000,000 USD from one structure.
The price is only going one way and the upside is staggering.
MATD will be producing oil in 2022.
DYOR
Accumulate and hold on.