Member Info for abzzba

Cw, hang in there, once the farmout is agreed and we get drilling again sure you will see your money back and a lot more if your willing to wait.

CW, the 20 days takes us through to the 14th but think most are expecting an RNS towards the end of the week.

I33,

The LOI sets out the key terms and framework under which the parties intend to negotiate and finalize a detailed Farm-Out Agreement. It acts like a roadmap before drafting the full legal contract.

Typical Contents of a Farm-Out LOI

Identification of the Parties – who the farmor and farmee are.

Assets/Interests Involved – which oilfield licenses, blocks, or acreage are being farmed out.

Work Commitments – what the farmee must do (e.g., drill one exploratory well, shoot seismic, fund development).

Earning Provisions – how and when the farmee earns its interest (e.g., earns 30% WI after drilling a well).

Timelines – deadlines for work, approvals, or final agreement.

Exclusivity – whether the farmor can negotiate with others during the LOI period.

Confidentiality – keeping shared data private.

Conditions Precedent – approvals required (regulatory, partner, board).

Binding vs. Non-Binding – usually, commercial terms are non-binding (subject to final contract), while confidentiality, exclusivity, and governing law clauses may be binding.

Below assumes brent at $70, so Brent currently 65.50 so yes we get a few dollars less per barrel

AGM in March. around $43 per barrel after deductions, see timestamp and transcript below.

46:57

price adjustment processing handling and trucking fees block 20 receives around

47:03

about $54 per barrel and applying the PSC terms MATAD Nets around about $43 a

47:11

barrel that's a pretty high net back by global industry standards which reflects

47:16

the favorability of Mongolian fiscal terms

Adw198, your rogue estimate was closer to the mark.

"Rogue" is a word with multiple meanings, referring to a dishonest, unprincipled person (like a rascal or scoundrel), an independent or unpredictable entity (such as a rogue animal or plant), or a thing behaving outside of expected norms (a rogue wave, rogue cells). The term can also be used as an adjective, like in "rogue state" or "rogue animal"

Gazelle RNS 17th October 2019.

Extract below.

In the Upper Tsagaantsav reservoir objective, good wet gas shows were recorded throughout a predominantly shale prone section. 3 metres of net oil pay in good quality sandstone have been defined on the logs.

Ref 198s post 09.58, he reckons 50 bopd is worth 600k per year, it is if we only get $32.87 per barrel, could be he has calculated wrongly, these NEGs seem quite useless even with basic arithmetic.

Fully expecting H2 RNS in the coming week, the 14th takes us to the end of the 20 days MB stated but seriously doubt it will take that long, also expecting a commercial production rate from H2 before the rig moves onto Gazelle, bit unclear if Gazelle will be stimulated prior to the well test, nothing has been mentioned about stimulating it, no doubt we will get an update when H2 RNS is released.

RNS 26th August.

H2

" If a commercial rate of oil production is achieved during the test, then the well will be completed as a producer and production facilities will be installed with the aim to have the well on stream before year-end."

So if commercial rate oil production it will be brought into production this year, think everyone realises that means October before November shutdown for winter, you could nit pick like Adw198 but given how many times this chump has been discredited is there anyone left apart from Doc, our Kev, and Unnd that believe what he """"infers"""""

TT, agreed, nice RNS stating 100 bopd from H2 would see me well pleased, that said i will be happy with any commercial production rate that delivers revenue while we wait for farm out news.

GOBI migrated oil.

GOBI RNS states 34m reservoir quality sandstones but little oil show, the oil was formed there but reservoir forces/stresses/pressures have shunted that oil out of the sandstone and into another part of the reservoir, analysis of the cuttings which are bagged and depth tagged during the drilling process should point to the depth where the oil is hiding.

Geochemistry of oil well cuttings involves analyzing rock fragments (cuttings) brought to the surface during drilling to understand the subsurface geology and potential for oil and gas. This analysis helps determine source rock characteristics, identify potential reservoirs, and assess the properties of hydrocarbons present.

All that oil is still there, just not where it was formed.

Excellent youtube on migrated oil which essentially explains our Gobi well.

https://www.youtube.com/watch?v=pwZi3W64Ot4

Below you will find several great examples of previously suspended wells which turned into significant producers.

Note: I am not suggesting our suspended wells will perform anything like as good, being realistic if H2, Gazelle & Gobi are commercial that would be great.

1. Prudhoe Bay Oil Field (Alaska, USA)

Initial status: Some early wells in Prudhoe Bay encountered technical and flow issues, and initial skepticism existed about the field’s potential due to its remote location and logistical challenges.

Turnaround: In the late 1960s, after further appraisal drilling and better reservoir modeling, the field was confirmed to be massive. Development was delayed, but once the Trans-Alaska Pipeline System was built, it became one of the largest oil fields in North America.

Lesson: Technological infrastructure (pipeline construction) turned an economically stranded asset into a massive success.

2. Ekofisk Field (North Sea, Norway)

Initial status: Early exploration offshore Norway in the 1960s was not promising. Several wells were dry or had disappointing flow rates.

Turnaround: The Ekofisk discovery in 1969 came after previous discouraging results. It turned out to be the first major commercial oil field in the Norwegian North Sea.

Lesson: Persistence in a new frontier area eventually led to a major discovery. Some nearby wells initially seen as marginal were re-entered and became productive.

3. Buzios Field (Brazil, Pre-Salt)

Initial status: The early pre-salt exploration in the Santos Basin was challenging and expensive, and many initial wells were suspended for economic or technical reasons.

Turnaround: With the discovery of Buzios and improved deepwater drilling and completion technologies, several previously non-commercial wells in the region were re-evaluated and became part of a world-class field.

4. Kern River Oil Field (California, USA)

Initial status: Discovered in 1899, parts of the field were considered depleted or unproductive by mid-20th century. Wells were shut-in or suspended.

Turnaround: The use of enhanced oil recovery (EOR), particularly steam flooding in the 1960s, revived many wells and increased recovery dramatically.

Lesson: Application of new recovery methods can turn declining or non-producing wells into economic successes.

5. Wytch Farm (UK)

Initial status: Early drilling in the Wytch Farm area (Dorset, England) in the 1930s-1950s was unsuccessful, with multiple dry or low-flow wells. Some were suspended.

Turnaround: In the late 1970s, BP used modern seismic and directional drilling to revisit the area and discovered significant oil reserves, turning Wytch Farm into the largest onshore oil field in Western Europe.

Lesson: Advances in seismic imaging and directional drilling enabled a re-evaluation of a previously "dead" field.

Key Takeaways

Technology matters: Many suspended wells were later revived due to new techniques like horizontal drilling, hydraulic fracturing, or EOR.

Three reworks, expecting H2 RNS next week.

In the 30th July presentation MB states chance of success as follows.

H2 = 70/75% CoS.

Gazelle = better than 50% CoS.

Gobi, MB would not be drawn on a CoS but feels confident, if we hit the sweet spot we are laughing, if we miss we can still end up with a commercial oil well, we could off course miss the oil completely but one would hope that with the addition of the wireline logs and geochemical analysis of the well cuttings we now have a much better understanding of the well than we did pre drill.

The refinery is almost certainly why Heron oilfield has been confirmed as State Special Purpose Land. This is the first oil exploration and production area in Mongolia to have been given this status.

There is no doubt that Herons oil is crucial for the refinery project and Mongolia’s future, See RNS below.

https://www.lse.co.uk/rns/MATD/certification-of-block-xx-exploitation-area-kfsvh3vqi29j5pn.html

Just in case anyone needs info on our farmout and those involved.

It appears there may be a new ENTITY on the horizon. MB confirmed during the presentation that talks with Indian explorer taking place.

Videsh Limited (OVL) a subsidiary of ONGC India are exploring potential oil and gas exploration opportunities in Mongolia. This interest stems from discussions between Videsh Limited (OVL) and the Mongol Refinery, with the Indian Embassy in Mongolia actively facilitating these talks. The discussions include collaborations on oil exploration and other mutual interests.

Here's a more detailed breakdown:

ONGC Videsh Limited (OVL): https://ongcvidesh.com/

OVL, the international arm of ONGC, is actively involved in these discussions.

Mongol Refinery: The Mongol Refinery is interested in collaborating with ONGC for oil exploration in Mongolia.

Indian Embassy's Role: The Indian Embassy in Mongolia is playing a key role in organizing meetings and facilitating these discussions.

“””Specific Focus:The discussions are focused on exploring oil and gas opportunities in Mongolia, with a possible partnership for upstream growth.”””

Historical Context: India has been involved in a project to build an oil refinery in Mongolia, with a $1 billion loan from India. This refinery is expected to utilize crude from Mongolian oil fields.

2025: https://www.facebook.com/100064495280063/posts/on-5-march-2025-embassy-of-india-organized-a-virtual-meeting-between-ongc-videsh/1039552271537939/

2025: https://x.com/IndiainMongolia/status/1897565460696121451

2025: https://eoimongolia.gov.in/albumimage/Mzg,

Obviously these talks have been ongoing for years, see 2021 article below.

http://www.mongolianbusinessdatabase.com/base/newsdetials?id=27601

Another “possible” in the race is Gobi Terra (UK) Limited, they have just completed a farmout with Elixir Energy Limited earlier this year, they are run by Mongolian financial guru BAYANJARGAL, Byambasaikhan, he has been involved in some of Mongolias largest energy/mining deals including the Rio Tinto mine.

https://www.listcorp.com/asx/exr/elixir-energy-limited/news/farmout-of-mongolian-assets-3154430.html

Also guaranteed Petro China & Sinopec/Dongsheng are interested in Heron.

Competent Persons' Report increases total mean unrisked in-place oil resource potential of the Heron structure by 20% to 194 million barrels.

Easy to see why Heron is so important to Mongolia and its energy needs future, also understand why it was designated State Special Purpose land, ref 5th Feb RNS.

Mongolia energy needs & MATADs future are entwined.

https://www.lse.co.uk/rns/MATD/operational-update-gfibfo9mhp20u0j.html

Once we get started with accelerated drilling then we can think about injection wells which will increase production for all wells producing from the same reservoir.

16th January RNS = The terms of the Cooperation Agreement have been agreed by the parties involved and it is now awaiting signature by the operator of Block XIX. This is expected in February after which sales revenue will commence.

(Petro China finally paid our first invoice in June, details below)

18th June RNS = Gross proceeds of $1.18 million were received representing 70% of the invoiced amount. Invoice total = $1,685,714 outstanding = $505,714

26th August RNS= May/June invoice = $320,000 received (70% of invoice total) invoice total = $457000 outstanding = $137,000.

July invoice = At time of writing no payment advised. Invoice circa $225,000.

Outstanding amount owed by Petro China = $642,714 ($505,714 + $137,000).

Outstanding amount owed by Petro China including July invoice = $ 867,714.

Question = How much will 5000 bpd cost in start up capital.

Answer = A very small fraction of the profits over the lifetime of the wells.

Each well can produce for 20+ years,

5000 bopd x 7300 days (20 years) = 36,500,000 barrels of oil.

36,500,000 x $40 ? = $1,460,000,000.

Keep in mind 5000 bopd is in the region of 33 producing wells, 2 seasons accelerated drilling.

Not like our Kev to put a negative slant on things GUFFAW.

If we "assume" a meagure average of 150 bopd from each producing well and we know the life of the well is 20+ years it’s not a bad return.

1 Well @ 150 bopd delivers circa 54,750b barrels per year or over 20 years delivers 1,095,000 barrels, obviously well deliverability reduces over time but wells can produce for upto 30 years so lot of guess work going on.

Also i would suggest if we had an accelerated drilling program costs per well would be reduced substantially, MATADs cost of 4 million per well is based on one well, if we drilled 30 plus wells per year (as Petro China do) costs per well would be far less.

Think some should remember Petro China have become Mongolias largest producer over the last 20 years but their production from their 20 year old fields is now falling, now its our turn to be the major supplier of oil from out untapped block XX..