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You can't blame the management - or Mike Buck in particular - as matters are out of their control. This is just a waiting game.
The situation is exactly as I posted recently. They will not mobilise until the land issue is sorted out.
Mike Buck, CEO of Petro Matad, said:
"I fully appreciate that the lack of resolution on the land access issue will not be welcomed by shareholders. At this stage we have submitted an additional application to local authorities, are pushing for short and long-term solutions to speed up approval and continue to receive the support of the relevant ministries and the Cabinet of the Mongolian government to expedite the matter. We continue to work, day and night for a resolution.
In the first half of this year, we have made substantial progress on getting our production capability ready in order to ensure we can complete Heron 1 as soon as the land issue is resolved."
As for the cash:
"The Company's cash balance at 30 June 2022 was USD 6.62 million (USD 3.10 million in cash and USD 3.52 million in Financial Assets)........As previously announced, a successful fundraise totalling USD 10.4 million gross proceeds was completed in August 2021 to develop and further appraise the Heron oil field with the goal of commencing production in the second half of 2022. During the first half of 2022, the Company has used part of the proceeds raised to place orders for essential equipment required to put the Heron 1 well into production. The remaining funds received from the fundraise have been invested in relatively safe high yielding term deposits waiting on the ramping up of work programme activities. Throughout, the Company has continued with aggressive cost control measures including maintaining a small but highly active workforce with the necessary operational capability."
It would appear that the cash has been spent on running costs (including wages) and equipment.
They couldn't really say anything else. Its as we already know
They are literally stealing money from the company and the shareholders.
What a shambles. MB has proven to us he is not capable of delivering .
They are clearly doing as much as possible within their reach, as expected a slow burner where one accumulates on weakness if they, like me, think and hope that the land issue will eventually be resolved, which in turn would provide a massive rerate. In my portfolio I deem this a high risk very high return smaller holding. Time to wait.
We would like a break down of where the 10 million dollars have gone. Only 4 million left in the bank. What are the 3 million of assets and where is the other 4 million???
What a joke.
MB is full of crap. Last interview he said its on its way and will bein Mongolia in 2 weeks and 7weeks later he still has no equipment.
Looks like back down to 2p or even lower
yes, I agree. price will drop to 2p or so. what I don't understand regardless of bad or good news MATD needs to communicate with/ inform share holders, simple.
I don't believe the locals give a damn about environment. It must be all planed!
Being famiiar with the usual PM routine: If nothing changes here, i.e. no (postiive) news or any news at all, a SP drop down to 2.2p (or less!) would appear to be realistic from my personal POV. That's not nice but we'll just have to deal with it.
Where were the locals in the last 10 years when MATD has been spending money looking for oil?
If MATD/MB has been there, why is so difficult to clarify the situation and keep us informed!
Is it difficult to tell us what happened to equipment? I don't think that is too much asking since we have put lots of hard earned money in it!
The locals are basically parochial Luddites and don't want change... plus they have this romantic view of Herders... !!
but one thing I do have some sympathy with is that only 24% of profit goes to Mongolia under the PSA. In UK we charge 40% tax!
Like nearly everyone on this board I am frustrated at the lack of progress at this company.I don’t understand why pm can’t give us regular updates and also why local people are bothered about the environment near us.For Pete’s sake how many people live near our oil field.There’s only about 3.5 million in the whole country,Which is bigger than Europe.,with most near or in ulaan batar.On the other hand MB has over 8 million shares,so talk of him not being interested in PM producing oil doesn’t make sense
I'm sure if I had a vested interest in something and was in a position to "pop in and out" during the day of something of significance I'd try elaborate a bit more. This seems way to important for PM, MB, to NOT be there. I'd be breaking my neck. Maybe just maybe we'll get an update once the mining event has finished, one can only hope. GLA
Hamm. How do you know PM are not present?!?!
All you have to go on is what a person with an anonymous name on this board said.
MATD is apparently the only active oil company but not present at that event!
MATD could have clarified the equipment delivery situation at least. That wouldn't be difficult, would it?
Perhaps they need LP permit for that as well!
Gets more like Gormenghast every day!
The posting by curiouserandcuriouser actually sums it up quite well and should be just as accurate as an explanation: “One of the main problems that have attracted the most attention of the industry and are waiting for a solution is the opposition of the local people. Today, within the framework of the Mongolian Mining Week 2022 event, a meeting will be held to discuss the difficulties faced by local and foreign investors and to determine the way out of them.”
So the government is fully aware of the problem of local conditions and is trying to find a solution. This does not only concern PM but all investors in Mongolia. This is exactly what PM has always said as an explanation for the delay. This only proves that PM has always told the truth and that our hands are (still) tied at the moment.
DazzerG - I have also emailed them and reminded them of there governance to have a two way communication with investors and to respond quickly to any investor queries. Same again no email back. Biggest problem here is the lack of communication after being promised on numerous occasions they would improve on it. Frustrated to say the least
//How many oil companies are in Mongolia?
I thought MATD is the only one?//
Is that a joke? Petrochina's PSA contract is being debated as we speak. Anyone genuinely physically in Ulaanbaatar and can listen in and translate Mongolian? We would very much appreciate your input as the outcime regarding this major oil company in talks regarding tje future if Mongolian oil PDas will imo significantly affect PM
How many oil companies are in Mongolia?
I thought MATD is the only one?
I really hope this is not the case, but I genuinely believe Petro Matad are struggling/in trouble.
As I say, I REALLY hope that is not the case though, for obvious reasons.
I have emailed Petro Matad investor relations approximately 6 times over the last 2-3 weeks, seeking an update (of any type), but zero response.
That goes completely against their governance to keeping investors informed.
Very frustrating to say the least and certainly not professional.
We continue to ask many reasonable questions and resent the behavior of this crook forgetting that actually he does not need any worries. Why should he bother with something when without them, or even without any effort, he can easily appropriate the money of investors.
That's why he let everything go by itself. Indeed, for him personally, the absence of a license is even a blessing. Because it will not require from him to engage in the oil production - chatter and scams only, in used of which he managed to succeed.
How many oil companies are in Mongolia?
I thought MATD is the only one?
Why not showing up in such an important events by MATD/MB?
Till now no news has been bad news at least that has always been the case with MATD!
Now nearly 2 months since MB mentioned equipment delivery and not a word yet says it all.
Guys,
Surely something of this seriousness it would be in MB's and MATD's interest to be present, they are at the forefront of Mongolia's up and coming oil production at some point, as curious mentioned in a previous post maybe they are close to granting of permits and carn't inform the market because of negotiations and deals been done, I hope Heron gets the nod to start. Two week work within the next two and a half MTHS, still time if everything is in place at the Heron site because no one knows for sure yet? GLA