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bonum - it was phrased as a question - just looked like it to me,
though I could be wrong
Petertee, most of the posting here is quite considered by most of the contributors and certainly no 'bombarding' by multiple different posters, as we oft see on certain BBs.
Hopefully the opinions given are also substantiatee with some logical base at least.
Not sure how you arrived at the P&D conclusion, but each to their own opinion.
Let's see how things play out leading into the timeframes previously discussed.
Atb
Underpinning what you say Manro, is the massive inward investment from India for the infrastructure to refine domestically produced Oil - all consistent with the Govts stated aim.
Everyone that really matters is aligned and reading from the same page and it does us no harm that PetroMatad are effectively 'seen as a Mongolian Company'.
The Exploitation License will be issued soon and within the timeframe stated by the CEO, imo, the impact on the Company and share price expected to be massive.
Atb
To be honest I do not quite understand why there is so much talk or even anxiety regarding an exploitation license. Isn't granting such license a natural condition for investing in search for oil? If it wasn't so, then no company in the world would spend money on the search for oil or something else. Of course, there are many examples of bureaucratic arbitrariness. But Mongolia, as Mike himself so often likes to repeat it, is extremely interested in developing its oil and gas industry and be independent of Russia. And if this is so, then why should Matad have to divert so much effort and attention to this license or work with local authorities? If the central government is not corrupt, then neither it nor the local government should do such tricks as to brazenly impede the company's activities with foreign investors. On the contrary they must to assist company in every way and give the opportunity to calmly and without any fears solve much more important financial or other issues connected with current activities or strategic development.
Note the word 'TRANSFORMATIONAL'
Atb & have a good day
Haha....good one Capt. Stanley!
One thing which may be helpful to consider, is the effect the Exploitation License release would have on the Share price.
Given the catalyst said news would be, the immediate and continuing Upside from current levels would be dramatic.
An extended timeframe beyond the end of Q1 may see some stagnation or slight dip in the prevailing price, however expectations for a near term issuance would still be prevalent and for the reasons given.
The price here has been robust in the last couple of days, due to its previous heavily discounted level - we're now daily getting closer to the Exploitation License within the aforementioned timeframe, hence I would reasonably anticipate a greater build up of interest in a previously ignored but highly promising prospect.
I tend to discount one liner, throwaway posts on the stock as I don't think they contribute anything to a productive assesment of the investment case.
However, in the interests of a productive BB, I would always be open to any other reasoned viewpoints, to help us all benefit form the potential I see MATD presenting - also avknowledging usual market caveats etc.
Atb
looking great here. I got back in at the right moment. Didn't want a wasted year.
Bonum, great posting today, thank you for your comments.
Always balanced
Interesting points Lockedln but every situation is different and I certainly wouldn't assume any deadline with the Exploitation Licence would be delayed due to an association with mixed drill deadlines in the past.
However, you do make an important point insofar as there is no absolute guarantee that the EL will be issued by the end of Q1.....only what many will perceive as more or less likely based on the Confidence displayed by the CEO for such.
My own view is that the CEO is in a much more privelaged position than we are in assessing the likelihood of that timescale being met and would certainly have had some level of feedback through various sources at his disposal - as previously commented on, the largest shareholder here is also very prominently established as within the country's commercial infrastructure, with access to higher level Govt sources.
He's been consistent with his stated 'Confidence' in the Exploitation Licence issuance before tge end of Q1.....hence, literary at any time.
That doesn't discount your viewpoint but perhaps reinforces why there's renewed confidence here.
We can speculate about the effect such an RNS will have on the Share price but given that it would open up a massive upscaling & transition for the company, I would prefer to be holding MATD stock for such.
Atb & thank you for your perspectives.
'Wise Words' from Bonum again
Positive BB (good & bad days) will always 'ultimately' help the SP grow as more confidence develops. I think we've had our kick in the nuts now - now time to recover!!
Fair points bonum - I admire you're confidence in receiving the Exploitation License pre-Q2. I see this as MATDs biggest risk by a long shot as we currently stand. Reasons:
- MATDs previous track record of sticking to timelines
- The Mongolian Gov and MATD are going through this process (EL approval) for the first time in over a decade
- In-country elections which are known to slow everything down
- The ****storm that is coronavirus
For these reasons I am highly cautious on MATDs prospects of receiving the EL on time i.e. pre Q2. I know MB has stated he is confident, but then look back at the numerous times he was confident of sticking to drilling schedules over the years and look what happened there....
Bonum, yes excellent post. I think you've summarised the position very accurately.
Like many others here I'm sitting well underwater with this share but confident for the future. As you say we have found oil just waiting form the process of getting out to be completed. Good to see a rise in price as cannot understand how we dropped tom these levels based on what we have. That said the market is impatient and hates waiting around so I guess that's the reason. GLA
Excellent post bonum - that is the type of contribution on this bb that most of us (hopefully) are looking for! Good to have you on board!
Let's all take a step back now - all opinions welcome but lets try to have as productive a BB as possible.
My points in the 15:24 post pretty much sum up my perspective on this.
Atb
I don't think it's particularly useful to engage in direct 'bickering' with any individual poster, albeit how many of us haven't been sucked into that rabbit hole at some point.
It helps to look at the information available and asses the validity of the various viewpoints on offer, to try and profit from the Opportunities available - and there is a major opportunity at the present with MATD, imo.
I think we all agree on the following -
- Exploitation License will be Transformational for the company for the reasons already given and the opening up of the larger scale transition to an Oil producer, that helping to fund further expansion & exploration.
The timeframe for the end of 2019 wasn't a realistic one and Mike Buck was somewhar dismissive of it at the time - the one he stated he was 'very confident' of was for the end of Q1 2020.
It's important to note and as emphasised previously, that PetroMatad are essentially viewed as a domestic Mongolian company listed on the London markets, with the largest shareholder well established within the country's industrial infrastructure - MATD are 'confident' for a reason.
Capt. Stanley is correct when he states the company will require some limited funding to kick start the process of commercialising assets etc - that's already known and important to point out, so let's not shoot him down on that.
Where myself and CS differ ican be referenced to Mike Buck's own words ie the $10-20M will be only partly made up of a placing, if indeed it's required at all.
The first point of call is via a loan from a domestic bank or Entity and referencing again the status of PetroMatad in the country - that is the preferred route to take to preserve shareholder value and recognizing also who our biggest shareholder is.
We are also in talks with PetroChina regarding a potential Joint Venture agreement to facillitate the aforementioned funding - again, specifically stated by the CEO.
If indeed a limited funding is still required and in the context of the aforementioned, it's unlikely (not absolutely impossible) that it'll be a 'bergen style set up) as we already have an bonafide Oil asset to use as collateral to gain acsess to a straight loan or attract a JV partner AND that we previously terminated the contract with bergen as it wasn't in the best shareholder interest.
We need to take all the facts in the relevant context, to arrive at a more acurate picture of what's happening here and what we can expect.
I'm not interested in 'blue sky' thinking nor an overly pessimistic viewpoint - just the best likelihood of what's happening with the informatio available.
Again, let's not forget we already have an oil asset with excellent geology and can reasonably expect the Exploitation License in the next few weeks, which indeed should be Transformational for the company.
I'm very pleased to be holding stock in MATD at this juncture.
Check out Mike Buck's interviews yourself & the compan
Additionally, hopefully the Mongolian authorities understand the importance of awarding this license asap, as with the covid 19 scenario seemingly playing out unfavorably, and the fact Mongolian shut its border with China, advancing their own energy independence position is important
Agreed, the Exploitation License will absolutely rocket this share price, as it opens up all the channels requisite to transformation into a revenue generating Oil producer in a very short timeframe.
That itself establishes a solid foundation for further development of assets and opens up options associated with the current talks with PetroChina.
The CEOs own statements tegarding the above and not just BB speculation.
Refer to the previous interview posted & the pdf overview, to independently establish the above.
This hasn't even really started yet, imo and the next few weeks should be interesting as we move towards the issuance of said Exploitation License.
PetroMatad and its major shareholder are well connected for that.
Buy, hold & await said news
Atb
Well said bonum.
Agree...leak possibly. Petrovis got the political connections and influence to get things done.
This dropped way too low during News blackout.
Lot of folks taking positions ahead of news which could be here soon. After Exploitation license comes in, this would be in Double digits in my opinion.
I posted this earlier, which I believe is the state of affairs;
"What needs to be emphasised is that PeteoMatad are 'viewed' as a Mongolian company by the Govt, who have just invested a massive amount of funds (via India) to develop Refinery facilities to address domestic use.
MATDs biggest Shareholder is a major industrial player in Mongolia, hence has a great degree of influence within Govt. circles - this is why possibly indications of the fortcoming Exploitation License iisuance may be known, albeit we require the official RNS release - that should be with us as previously stated, within the next few weeks."
4.40 paid
5p coming.
Should not have dropped this low in the first place
Great idea posting this, newcomers seeing the 30% can get an idea of what's going on! :) Cheers Bonum