Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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But WOS, do you know what % of the barrel value we get once all costs, royalties etc are taken away?
With all cost factor integration we have RENAV of 26.7p/share ;)
Before we even mention profit we need production and there’s still some points to clarify.
Formalities of licence how long will they take.
I assume (correct me if wrong) we also will only produce until Winter kicks in, so if formalities take a while will it be worthwhile starting to produce this year.
The reality no matter what rampers or derampers say, is it could go either way….with production we may finally see 12p plus talked on here for so long, production next year and it’ll be 3p area…..
Hopefully a quick update from MB will dictate which direction we take……a petrochina buy out is my preferred option ! Lol
Ultimately LP bought no respite……it’s high risk, although a bit less than before LP.
"Trucking & operating costs are recoverable under the contract so you get those back" - 12 min 30 sec into video.
https://youtu.be/AzHbQpedtMI
Hope this help ;)
Progressive say $10 per barrel trucking costs to China for refining.
5% royalty.
60% contractor cost for profit oil.
It won’t let me copy and paste but here’s the link:
https://progressive-research.com/wp-content/uploads/data-sync/research/MATD-20210707.pdf
I’m on it WOS!
Velociraptor has an 8% royalty, with 55% to DQE reducing to 50% once in profit. Ouch.
I’ll have to find out what Heron’s terms are, but throw in transportation and whatever other costs there will undoubtedly be, and it’s comfortably less than half?
Anyway, would just be nice to finally extract oil, at any cost!!!
Development costs across Block XX not just Heron
Mr Doc
Better get out research notes to check ;)
Very interesting comments from Mr E Orchlon from URECRA at Mongolian Economic Forum session "New Energy Sources - Sun, Wind and Hydrogen".
"Our country can become a big player in the energy transition like the next Saudi Arabia or the United Arab Emirates".
Have say plenty time here watch this space with Mongol Renewable Energy potential one of biggest globally and Petro Matad well position in this sector.
This as well as production from Heron, strong cash position & exciting near field develooment of Block XX.
Multiple RNSs coming for holders
MisterP - the recovery cost, is that our costs we’ve spent on heron this far? If so, that is fractional of the overall revenue we’ll get from it. And even by Condorman’s calculations with the recovery cost included, it’s not much more than half.
I’ll have to dig out the old RNSs and research notes, but I thought I’d read that DQE get something like 45% of a barrel of oil. I knew that the MG weren’t too bad with their cut.
It’s fair to assume that we’ll get less than the best terms, given we’re a newbie with no negotiating clout as such.
Correct. That would be circa 54% - 55% per barrel
Cash coming to us.
We can Model at higher Oil prices. Every 10% increase in Oil price adds US$+40M to Heron NPV
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 ;)