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It's about time Mr Buck woke up and gave an interview or at least a podcast or two. The long-suffering shareholders need to know about the immediate plans. This will also help the share price as 5p is a nothing price.
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.
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.
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.
Pro you are booooring! 🤡
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.
Prime Minister had morning meeting with energy sector representatives today.
Traders working hard & putting out lot if disinformation need to be dry careful Lol
Newsflow coming will overwhelm you :)
Oooo goody - multiple RNSs, can't wait!
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.Â
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.
That's s very good read
Thanks Thinks Thanks
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 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 :)
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.
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.
“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?
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.
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
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.
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
Mr Doc
Better get out research notes to check ;)
Development costs across Block XX not just Heron
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!!!
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