Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Doc
Have a look at below post from CondorMan outlining detailed breakdown of steps under PSC
Govt share of profits comes right at the end after our Cost recovery first. Only thing they take directly from Gross Revenue is the Royalty %
Large portion of cash received from Oil revenues goes towards Cost recovery of our Development costs and Operational costs before you get to the Profit share split as outlined in PSC terms.
Many folks incorrectly assume 50% Govt profit share from Gross Revenue. That is wrong.
“We get to keep majority of the Oil revenues up until we recover all our "Capital costs" and Operational costs referred to as (Cost oil)”
MisterP - so even the initial oil sold where we can keep x amount for recovery costs, we are just about getting more than half the value of a barrel?
MisterP - hang on a minute, we’re hoping to recover potentially BILLIONS of $ of oil. What are our costs on Heron? I have no idea, but we’re talking millions and a fractional amount relative to the overall value of the extracted oil. So the reality is that we will be getting less than half the value of a barrel of oil?
I’m no expert so will be very happy to be proven wrong and us make more money than I expected.
very interesting condorman and comes in line very similar to a rough back of *** packet i had estimated. it means with a possible 15wells averaging 800bopd we could comfortably clear the 133m usd accumulated net loses in less than a year even allowing for additional spends on top. so it is very possible that xmas 2024 could include a nice little dividend for us long term shareholders. now that would be nice xmas present.
That is LOT of CASH heading toward Petro Matad!!
Explorer to Producer / Revenue generating machine and sone people still running like mouse to get extra 0.25p lol ;)
Clever one will be BUILDING UP holding :)
Thanks CondorMan. Our posts landed same time.
I get $38.5 /barrel as MATD profit share @ $70 oil
Gross Revenue $70/ barrel
Royalties $7 (using 10% rate)
Transportation costs $8
Net Revenue $55
MATD entitled to 40% cost recovery $22
Remaining profit $33
MATD profit share as 50% $16.5
MATD profit share as 55% $18.15
MATD profit share as 60% $19.8
Total recovered by MATD would vary between $38.5 and $41.8 per barrel (Avg. $40/barrel)
That's s very good read
Thanks Thinks Thanks
From progressive's research report pdf 2021 :
Fiscal regime
Mongolia has a relatively benign fiscal regime for conventional oil production. There is a
government royalty (5% - 15% dependent on the PSC) which is deducted from the gross
revenues. The contractor is then able to recover the development and operating costs (Cost
Recovery). This is capped at 40% of net revenue (after deducting the royalty and
transportation costs). This will prove to be more attractive for contractors at higher
production levels. Any costs that are not recovered can be carried forward indefinitely. The
revenue after the cost recovery (Profit Oil) is then split between the government and
contractors. This varies for a contractor share ranging from 45% to 60% and is dependent
on the level of production and the PSC. There are some bonuses to be paid but these are
modest but are not cost recoverable. The conventional exploitation licences have an initial
term of 25 years with the potential of two five-year extensions.
No Doc. Not true and you not the only one here.
Many here are unclear about the PSC terms.
We get to keep majority of the Oil revenues up until we recover all our "Capital costs" and Operational costs referred to as (Cost oil). The remaining money is known as "profit oil", and is split between the government and the company.
Oooo goody - multiple RNSs, can't wait!
Newsflow coming will overwhelm you :)
Prime Minister had morning meeting with energy sector representatives today.
Traders working hard & putting out lot if disinformation need to be dry careful Lol
Pro. Please don't tell people what to do here. Its a chat board. Post what ever you want. Debate and share opinions and share info.
LP took longer than expected so everyone got it wrong including the mrpam minister.
I think paperwork at local level should not take long.
Mining minister visiting the local government must be a reason.
And if you read what he has put on his page , it clearly looks like they had to agree to disagree on some matters.
The only issue in Dorno currently is PC and PM.
Header say all & without mixing issues ;)
Pro you are booooring! 🤡
Master... please stop with the share price predictions. You have shown to be very bad at them.
You do have some knowledge but your predictions make that nobody is believing you anymore imho.
Do some research. Talk about fundamentals. Not sp. Just my opinion..
And fundraise talk if nothing else works.hahahaha would be Ok if sp was at 15 or higher.... MB takes care of lower sp himself.
Asked some questions today to IR... no response yet...will keep you informed if i get a reply
PM should do it alone. Enough money for 5 wells which will generate plenty of cash flow.
Rest of the wells can be done over the next few years.
RNS expected this week IMO..
Mining minister did visit Dorno and met up with the local government over the weekend.
MisterP - of that $70/barrel, we won't get anywhere near half of that. DQE/MG get more than half IIRC?
An interview from MB would be welcome to clarify a few things.
We could see an interview this week to coincide with Heron-1 work over dates and DQE deals.
Those spouting fund raise really clutching at straws just to get back in lower. That is always their ace card they use when nothing else works.
We got enough cash till July 2024. We got around $9m - $10m in bank to get Heron-1, 2, 3 and 4 online pretty quickly. May be more wells. They only cost $1.2m per well approx.
600 bopd @ $70 / barrel $15.3m annual revenue from one well.
Trucking cost to PC process facility only $8/barrel for onward export to HoHut oil refinery across the Chinese border.
Project above for 4 wells initially. Then project above for 20 wells from Heron-1 within next 12 months via DQE fast track deal.
I do not believe that this talker and idler who became CEO for a carefree life, by robbing gullible investors will start extract an oil this year. Why does he need to work and do so, if he can live for his own pleasure without even depressing himself by obligations to stay and work in his Mongolian office, and not live in Singapore or travel? And the drilling of wells for him is more like gambling, and not a painstaking business that requires serious mental and physical effort. And the LP, which was finally issued, was not his merit but rather the result of investors who began bombard all of governmental and other bodies, both in Mongolia and in the UK. What kind of respect for such a CEO can we talk about if he has already reached the point that even began to hold AGM not in London. Perfectly knowing what extremely unpleasant questions he would have to face and be forced to answer. Therefore, I personally think that this slacker will definitely find some new reason to postpone oil production to next year, and then till the commissioning of the refinery.
Stalling till refinery closer.
//B/p: don't be surprised if you spot yourself amongst those flying pigs!//
OOOOOOH! Major burn there Ojay. PMSL
B/p: don't be surprised if you spot yourself amongst those flying pigs!
Needs to get the next bit of hopefully good news out otherwise the SP will drift.
He knows Heron needs to get on stream asap.....I hope he's working his nuts off as we speak to get this up and running as time is of the essence.
I hope Mr WOS is not shopping AGAIN... I offer that until this s/p gets past 7p, Mr WOS needs to curb his shopping trips with Mrs WOS to buy 'shoe' !
(or buy one shoe per shopping trip, instead of two.. ie when he say he go shopping with Mrs WOS to buy 'shoe' he should literally mean this at anywhere around this current s/p imho)