Member Info for abzzba

I guess we could look at it this way, we are approaching a crossroads, continue straight on is the go it alone road, left takes us on the farm out and right is the buyout of block XX, just waiting on google maps (aka MB & interested parties) and instructions on which road we take.

Gadgie, purely my thoughts, hang in there, sure things will become a lot clearer soon.

Gadgie, in an earlier post you said you did not buy the IRAN issue causing delays in radial drilling, i most certainly do believe that.

Radial drilling will not be carried out by DQE, it will be a specialist drilling company and there are not many of them about, at present China is going all in on exploration due to oil prices & shortages, basically they want to ensure they are producing every drop of oil they can, radial drilling will help them do that from their own fields, radial drilling is also an excellent EOR method of getting more oil from depleted fields, they have plenty of them in China (and Mongolia).

So yes i can believe we need to wait for radial drillers to have a window when they come to Mongolia, no doubt we could offer them HUGE money to mobilize now but being realistic we do not have that sort of money to throw around.

Gadgie.

1: why did Gazelle take year's to develop = obstructive local politician, permits not forthcoming & shortage of cash.

2: why are we not drilling Gobi or indeed any wells this year = If we are close to a farm out do we want to be using MATADs available cash on GOBI or saving that cash to work on block VII, MB has a better understanding of where we are than we do, this assumes you "like" the farm out option, i have said numerous times i prefer the go it alone option, or it could be MB does not trust PC and wants to ensure we have cash in hand rather than spend it on drilling/ well completions of GOBI or other drills, from my viewpoint Gazelle 2 is the much better option to GOBI, though it still needs drilled so cash wise would cost 1.5 million more than GOBI.

I am struggling to understand why investors are getting so tetchy, we seem so close to securing a real future (one way or another).

Lots of "speculation" going on here, most of it pure rubbish by posters i believe are genuine investors, amazing how impatient they are, maybe they have invested more than they should have, maybe the "other half" is giving them an earful, maybe Doc & crew are getting under their skin, who knows.

Trump says Iran responsible for shooting down Apache helicopter, says US must respond

28th May RNS states:

Key updates.

Petro China has advised that the 2026 Oil Sales Agreement will be approved imminently.

My point being was the word "imminent" which is causing some investor grief simply MB re-stating Petro China words, if so then MB is coming in for some unfair criticism.

Proquo, "The market wants some tangible progress rather than positive predictions.", Appears the market will have to wait same as you and the rest of the investors will, would be great if it all played out by the end of the month but in reality things dont happen like that, except in fairy books.

Mongolian oil production fell 14% in 2025, fair to say it will perform no better this year as Petro China & Sinopec/Dongsheng fields become less and less productive.

MATADs new 3d seismic will give us a much better idea of the riches we have below the ground in block XX.

Dan, you are quite correct in what you say, the refinery will take a year or two to ramp up to full production (30,000 bopd), we also need to keep in mind that both of Petro China fields are 20+ years old and played out, similar story with Sinopec Dongsheng field, between them these three fields account for 98% of Mongolian oil production, with each year the production from these three played out fields will get less and less.

MATADs block XX is in its infancy, yet to be fully explored and brought into production, the refinery also has the licence for Davst XXXI field which has never been explored, i have no doubt Mongolia are looking at these two fields to produce the bulk of the refinery needs in the coming years.

Gadgie, simply a case of making up the shortfall, the refinery needs 30,000 bopd, Mongolian production is currently sub 14,000 bopd, absolute no way Mongolia can make up the shortfall from Mongolian fields between now and the expected February 2028 refinery commissioning date.

Goes without saying they will use all that Mongolia can produce first, its called a plan B.

Whatever is agreed for the 2026 sales agreement seems likely we will be getting more for each & every barrel.

https://oilprice.com/Energy/Energy-General/The-Countdown-to-a-Major-Oil-Price-Surge-Has-Begun.html

The 2025 agreement was based on the oil price as it came out of the ground, a similar deal for 2026 would suit us well, January & February prices were pre IRAN conflict prices but since then oil has bounced between $92 & $120, probably averages out around $104 or there abouts.

Lets hope China see the benefit of settling the sales agreement sooner rather than later, seems obvious oil will rise in price, its in their interests to pay us sooner rather than later.

Petro Matad have a legally guaranteed local buyer sitting right next door once the pipeline and refining infrastructure go live.

BUT more than that, we will get around $12 more for every barrel we sell to the refinery rather than paying Petro China transportation & handling fees plus a dividend to PC, if the refinery comes onstream February 2028 they need to start pumping oil towards the end of 2027, approx 500,000 barrels needed to fill the 530km pipe line, the 5 pumping and heating station that run adjacent to the pipeline and the refinery oil storage tanks which will hold circa 180,000 barrels (5 to 8 days refinery production is standard for refinery storage).

Mongolian PSC agreement states Mongolia has first claim on any oil produced in country but keep in mind Mongolian oil production is falling, Petro China fields are 21 years old, Sinopec field is also around 20 years old, several times in the AGM MB said Mongolian current daily production was 10k bopd, i thought it was nearer 14k bopd, but its certainly falling and well down from its highs of 2015/2016 when they were producing around 23k to 24k bopd.

TBT, "From tiny acorns mighty oaks grow", you appear to have started of at the already fully grown stage !!.

TBT, i have always thought its possible we could strike a deal with the refinery, supply discounted oil for say a 10 million advance payment, just a thought.

Kinda defeats the purpose of the refinery and the Mongolian dream of energy self-sufficiency if they have to import oil to run the refinery.

TBT, the doc link i posted yesterday (10.23) had a paragraph about Mongolian funding for oil exploration to fed the refinery, the doc itself was heavy going as it covered every Mongolian mineral and energy source.

Mullins / SP etc, thanks for the genuine research links, makes a change from seeing the nowt but slurs and insults posted by our resident TROLLs.