The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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There has been far too much misplaced negative talk about a placing. The doomsters apparently fail to appreciate that, if there were a small placing to fill a funding gap until Heron becomes cash generative, PM will surely not procced with a funding until the Block XX exploitation licence is granted; and this should happen in Q1 next year or just possibly by Xmas. Once PM has the exploitation licence it is reasonable to assume that the share price will strengthen, probably significantly, so that a modest placing at a price higher than today’s depressed sp should be considered a positive.
There is a scenario where the company might proceed with a more substantial placing in order to drill the Block V prospects in 2020 where the potential is more than 500 million barrels with reasonable COS. Given the Block V prospects, which aggregate about 20 times the reserve size of Heron, the share price should respond accordingly.
GKhan
Yup, definitely going to be no production during the harsh Mongolian winter. A lot of so-called investors didn’t even know something so basic about the Mongolian seasons but decided to invest their hard earned cash in the company.
This is why you should do extensive research first and not act impulsively. No production so the company will require additional finance, so value drops. That’s why I’m just watching this share until more news comes.
I’ve listened to the the pod cast over and over, and I can only see positives, especially if Petro China come on board, they can drill the wells cheaper than anyone else, still ongoing talks Gov, banks, and hopefully the big boys to take on the wild cat drills in the west.
I know it’s all if and buts, but surely they are being pro active, I guess the next couple of months will show us all how successful they have been.
I will keep the faith and continue to add..
GL all LTH
Winter in Mongolia is definitely setting in, it's only -17 just now but due to drop to - 32 this coming week, I think that makes it like a summer's day here in the UK to them then :-)) GLA
Same...there are loads of companies that can provide domes (or custom fit ) that could consume a drilling rig and any working areas that need some insulation and heating.
Why stop now? Are the winters that bad in Mongolia?
They keep going at it in other similar climates, Alaska etc.
Just don't get it but may have missed something. Been on the road all week and where I remain
Fully agree with Bonum
My only question I would have raised to MB at the end would have been why was Heron 1 last in the programme? If the probability of success was so high given it's proximity to PetroChina field?
They could have dug Heron earlier and used cash to get that into production?
I guess hindsight is a wonderful thing and Heron's probability of success lower than my understanding.
Overall MB's presentation was positive and straight talking. No ramping - which was refreshing.
We can only hope
Let's see how long he manages this time!
Agreed Capt Stanley - let's leave all recriminations & speculation on motives for other BBs to thrive upon and make this a platform for honest and considered debate.
We can all agree the longer term prospects for MATD at least, look very promising indeed - that's a start!
Atb
Spot on Bonum
The presentation is certainly an interesting one, albeit as many have commented, Mike Buck is a straight laced, to the point character - very factual, little charisma but the man to get the job done.
Firstly, we have a very promoising asset indeed in Heron and certainly a lot of positivity going forward from an opetational perspective, the more immediate issue being funding.
As he stated unequivocally, he's looking at options beyond a placing to protect shareholder value and specifically through a bank loan route and/or a partnership deal. To reiterate, he SPECIFICALLY stated that an equity issue wasnt the route they were looking at.
However, the bank loan would likely have to be undertaken through the Mongolian banks, which limits said routes to a loan but we should also consider the stronger situation PetroMatad are in now with a tangable asset in Heron and that the Govt. see the company as a Mongolian entity, who happen to be listed in the London market.
The CEO also mentioned certain informal discussion with PetroChina prior to Heron 1, which are now moving to a more formal basis, both from a logistical agreement perspective and the aforementioned Partnership options. The synergies are obvious, hence why many believe that such a Partnership agreement will be concluded.
Does that negate the possibility of a limited placing?
I believe that option may still be followed through as part of a larger deal incorporating a bank loan and to make up any shortfalls if required - it's not the preferred route or the one focused on, a point Mike Buck emphasises several times.
Of course, PetroChina would have their own strategies drawn up for the positive outcome that Heron 1 demonstrated, hence a fast track to conclusion of funding through that route.
From a petsonal perspective, I wouldn't mind the share price 'lulling' for a bit, as it would enable me to massively increase my own holding here and with what we can anticipatè for PetroMatad moving forward - we All agree on that!
However, I'm already in and certainly wont look to post a relentless, one sided perspective of the funding issue, to facillitate a re-entry into a stock previously exited from.
Let's actually listen to what Mike Buck is saying - in its entirety!
Atb