Member Info for abzzba

Fair to say that who ever the deal is done with one of their first tasks will be completing 3D seismic over the whole of Heron & Gazelle, currently we only have 3D for the northern parts that border Petro China fields.

Cw, i tend to agree, my hope is its OVL Videsh that have submitted the farm in proposal and we go with them, at a push Sinopec/Dongsheng but not Petro China

RNS: We have received a proposal from one of our counterparties to farm-in to Block XX. We have hosted their due diligence visit to Mongolia and to the Block XX facilities, and discussions are continuing, no company ever offers it best offer up front, we appear to be in the final stages with this party, offer could well be on the table within a month.

RNS, Happy to hear we are close to a result.

Oil Sales Agreement, Only the relatively minor matter of tax payable on processing fees remains to be agreed, do wonder if we can expect payment of the withheld cash with a small sum withheld to cover processing fees, better still can we expect only a small percentage held back on forward invoices.

Offer vs proposal.

An offer is a specific promise to do/not do something, intended to be legally binding upon acceptance (e.g., "I'll sell you my car for $5,000"). A proposal is a broader package of ideas, suggestions, or plans, which contains offers but also includes supporting info, often leading to negotiation before a final, binding offer is made (e.g., a detailed project plan with costs). In essence, a proposal is a suggestion for discussion, while an offer is a definite commitment ready for "yes" or "no".

The link below is the satellite image from September 26th which is as clear an image as i can find.

At the bottom middle you will see MATADs H1 & H2 wells, at the top middle you can see a cluster of Petro China oil wells, thats how close we are to PCs producing wells.

https://browser.dataspace.copernicus.eu/?zoom=13&lat=46.8557&lng=116.13081&themeId=DEFAULT-THEME&visualizationUrl=U2FsdGVkX19uzjFVn79TWdyjKNfvOZ2Dq3lqmy3mDUQGQjXsEXL1ADgSlUkd9O4cnwBQ1X3aF4tZ77X2CToxqQCcaiDq7ovj6AEedLYsEoF8Pi%2BFlXuCeYUAsA650Vhn&datasetId=S2_L2A_CDAS&fromTime=2025-09-26T00%3A00%3A00.000Z&toTime=2025-09-26T23%3A59%3A59.999Z&layerId=1_TRUE_COLOR&gain=1.4&gamma=1.7&demSource3D=%22MAPZEN%22&cloudCoverage=26&dateMode=MOSAIC

Thankfully the real oilfield experts that work for the 3 interested parties know what they are talking about, one proposal has already been received, kinda kicks our pseudo experts here into touch.

We all know how much of a success block XIX has been for Petro China, Heron is the same geology in the same Tamsag basin and Petro China wells have been producing there for 20 years.

Other very relevant news below.

Delivery of Key Equipment for Mongolia’s Oil Refinery Nears Completion in India, ps web page slow loading.

https://montsame.mn/en/read/384438

Certainly a huge boost if true as we will get around $12 more for every barrel by selling direct to the refinery rather than our crooked friends Petro China, no handling and transportation costs.

Also the article was first published on December the 9th so is the latest info available.

https://energiesmedia.com/mongolias-first-domestic-refinery-on-track/

Quite funny reading the posts from our armchair oilfield experts who tell us Block XX is unproven and worthless, thankfully the three entities vying to develop Block XX have their own experts (real ones) who are well aware of Block XX worth.

The fact that company has received a farm-in proposal is a positive signal. It shows that the asset has real value and commercial potential. This interest will only strengthen MATADs position when negotiating.

The two other interested parties who have not made an offer are likely waiting to see what happens. They may step in later if they think the asset could be lost to a competitor or if the first proposal sets a benchmark. Often, once one offer appears, others follow though my own thoughts are this inital farm in proposal is from an Indian operator and the 2 other interested parties are Petro China and Sinopec/Dongsheng, i believe the Chinese would favour a buy out of block XX rather than a farm in, the Chinese are not known for sharing.

Overall, the company is in a much better position than before. It now has a potential funding partner and growing interest from others, which can lead to improved terms or competing offers, should also be remembered companies seldom make their best offer initially.

Add to this the fact that Mongolia are desperate for block XX to be developed quickly, looking good.

So we start the day off with Adw quip about " mummy’s boys with their white privilege" which is quickly followed by kr post stating Maragaritas is the "product of inbreeding" then its onto stockmads "Now get to your work f****rs", easy to see why it overdue time the authorities stepped in to curtail this wild west show, LSE moderation is non existent.

https://www.proactiveinvestors.co.uk/companies/news/1083477/lse-reportedly-targets-wild-west-bulletin-boards-in-crackdown-on-market-abuse-1083477.html

Unnd, so why bother with your earlier post, bit of a waste of time ?.

Thornogson, its the fact that some actually hold this guy in high regard that tickles me, if you need advise from the likes of him you should probably keep your cash in the bank.

Mr P, see below from the Q&A. Also answers Thorno question.

Question 49:

What would the normal expected share split of a farmed out field? Is it 50/50 or more in favour of MATD or the active partner? Also what time frame would you expect the partner to be secured for MATD and announced and then actively drilling and active in the block.? Finally would they be a JV for the whole block XX or just the Heron field? Would existing production be passed into the JV partnership or would we maintain our wells and share any news wells?

You mention a capital input for the JV. Would the farmout partner not be drilling the wells at their cost or would MATD be in charge of drilling and production and development of the site?

Answer from Meeting:

Deals vary but operators usually maintain a majority or the largest share if the partner group is more than two companies. Timeframe is uncertain but we are making progress. Under a PSC regime it is hard to carve out bits of a block so a deal will most likely be for the whole block. MATD as operator would drill wells funded by the farminee.

The market needs clarification that company doing a farm out and not a JV. Yeah, well, that's an interesting distinction. Yes, we are trying to do a farm out and as I've said, the idea is to get a capital injection of somebody else's money that we can spend on an exciting work programme to get production up

TBT, that is my thoughts as well, Indian farm in and the Chinese will make buy out offers for block XX.

I33, i suspect he probably was hoping to make an issue out of it but as we can see from question 45 there is nothing untoward, just a shame he cannot keep himself upto date.

Adw, at least make an attempt to keep up, to answer your previous question about the 500k bonus. see below from the Q&A.

Question 45:

What was the production bonus payment listed in the Annual Results for, as in who received the $500k and why?

Under the Block XX Production Sharing Contract there is a $500,000 payment due on the start of commercial production operations payable to the government. Such bonuses are common in PSC jurisdictions.

Thornogson, i am not so sure about that so thats a question you can ask, makes little difference, infact i might even prefer a Heron only farm out but we keep Gazelle, but my understanding was that this is not posible.

MrP, seems your speaking about % share while i am saying the farm in covers 100% of block XX, ie block XX cannot be split up, we cannot farm out Heron but keep Gazelle, maybe/hopefully this is clearer.

Adw "The entire oil investment case is now dependent on a deal and he won’t give details on the (unacceptable) offer they’ve received."

Obviously he cannot give details away, seriously you "cannot" be that stupid (can you ?).