Firering Strategic Minerals: From explorer to producer. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Hi.
I hardly ever post because I don't think I have much to contribute compared to the rest of you. I've been in PM for quite a few ups and downs and the downs seem to come when something unexpected crops up. Exploitation licence, land permit etc. As I understand it Velociraptor is in the back of beyond. I have everything possible crossed that there will be huge amounts of oil BUT assuming there is then how does it move from there to where it's supposed to go. Trucks? There's no pipeline that I know of so if anyone knows what happens after "thar she blows" I'd be grateful if they would illuminate me and anyone else who might be interested. Thanks.
Hi Rudy
I usually don't respond to queries like yours - but here goes:
The first and foremost issue is finding oil; I'm sure you are aware that Velociraptor has a COS of 20%?
So you see: Getting the oil (if actually found) to a refinery is actually a luxury problem. There is no pipeline (we're in Mongolia!). But don't worry - if there actually is oil it will find its way to the next refinery.
GL
Oil tankers?
If they make another discovery in the Raptor trend, 200 M barrels recoverable, a pipeline will be built. The revenue will be north of 15 Billion which should just cover it!
Glad to see all the long term holders still here in a transformative period for MATD. Don't fall for the MM games. They will "drop it like it's hot" and close in the green. Sneaky mofo's
Cheers Ost
Well from the replies I've seen it looks like there are some heads firmly buried in the sand.
Build a pipeline--sure but how many years will that take.
Tankers-that's going to be a lot of tankers.
Don't worry the oil will find it's own way there. Ojay really. Didn't you go berserk when the LP issue came up causing the price to tank. Heron has oil in the ground but not being able to get it out and where it needs to go caused you a good deal of stress if I'm not mistaken and now you say don't worry about it.
I really hope there's a good solution but I'd be happier knowing there was a plan in place.
Building a pipeline seriously won't take a couple years.
how do you think petro china has been doing it for years? tanker. sheesh
Initially, oil will be exported via tanker to refineries in China (in co-operation with PetroChina who produce the majority of the country’s oil from its Toson Uul field complex immediately north of Block XX). However, once the new Mongol Refinery is completed (scheduled in 2024) all crude production in Mongolia will, by law, have to be refined there and transported from the Tamtsag area by a planned pipeline connection
Chinese will build that pipeline in 12 months.
The progress of the oil refinery construction project and the contract signed with the contractor to finance and build the oil pipeline project were presented. The Minister of Mines, Mines and Heavy Industry has been instructed to carry out an engineering geological survey along the route of the oil pipeline, and to develop detailed drawings and projects for the pipeline. The Ministry of Media and Public Relations of the Government has instructed the relevant ministers to study and present the issue of funding required for the training of specialized engineers and technical workers to work in oil refineries.
Thanks Jiminthebush- but where is that comment from and how old is the article or source . Thank you
I don't think the guy who mentioned fuel trucks needs to be concerned. There will not need to be a whole fleet of them queueing at the well. Each one can hold 3000 barrels and we will initially only be pumping about 500 a day per well. For Heron thats only a truck a day travelling 20km up to the first six wells.
For info only. https://www.mongolianminingjournal.com/a/72328
Thank you Jimminbush / so that was roughly 12 months ago , therefore must be well underway now.
//that was roughly 12 months ago , therefore must be well underway now.//
Is that sarcasm?
Yes a lot of tankers.
Good isn't it?
The more tankers the cheaper they get too, each one helping to transport black gold into Petro Matad's account.
Long lines of them weaving across the Mongolian Steppe like a modern day Silk Road..... the Oil Road.
How many tankers to equate to our current Market Cap?
Not many.
(The line of tankers moving Oil from our side of the Heron filed to Petro China's for onward transportation won't look so romantic but the money generated will look the same!)
Tick Tock.
T****gson - 324 tankers at $$70 : barrel if Mr Postive is right that there are 3000 barrel per tanker
Well you did ask!!! Lol
// large tankers have a maximum capacity of 11,600 gallons.//
3000 barrels is 135000 gallons
The size of tankers is interesting but the reality is that there will be as many as it takes to move the volume of oil produced.
That's just how it will be.
I stand corrected on the tanker issue. I mistakenly substituted gallons for barrels. The economics will still work out with the cheap drills though. It will be a fleet for the raptor but just a small convoy for Heron. Ten four rubber ducky.
Trucking costs for Heron Oil are only $8/bbl.
(Source: PetroMatad presentation)
5% royalty costs
Oil price received will be Brent less c.8% discount
Huge profit margins.
Petrochina been trucking crude for past 20 years to their refinery.
Thanks for the replies and in particular Jimi the Brush. Hopefully the pipeline will not require a string of land permits along the way.
Mr.P. But I wasn't talking about Heron I was talking about Velociraptor. Slight difference in distance.
Somebody else mistook gallons for barrels in calculating the number of tankers to shift 3000 Boe per day. That's 11 tankers. If there's 100 million barrels at 3,ooo per day it will take roughly 100 years to extract and drive out the oil. I think we are talking about a lot more oil than that. Obviously if all comes good the plan would be to extract more per day but that just adds to the logistical problem. Anyway it got you all thinking about being realistic. Let's hope the pipeline gets built if we find the oil. More importantly let's hope we do find the oil. Fingers and toes crossed that we have a nice problem to solve.