Member Info for Adw198

I’d say it does matter Doc, aside from the fact it’s the reason they aren’t receiving payment, if it does need paying then the margin takes a hit.

Obviously I think a raise is inevitable in a case but it’s hardly making for an attractive ‘For Sale’ listing when the very basics haven’t been agreed or are being disputed.

How do you go from this

“Under the Cooperation Agreement and applying the very favourable fiscal terms of the Block XX Production Sharing Contract, after payment of processing costs and transportation, and after the government's royalty and production share are deducted, Petro Matad will receive a net back of more than $40 per barrel based on a sales price of $70 per barreL”

To having a dispute about whether taxes are applicable? It’s impossible to have confidence going forward, especially in light of the fact it took PC 3 months to simply sign the agreement

I just listened to Tony’s comments and he claimed project financing will fund Asiamet through to production. It’s blatantly not true. Project financing is, unsurprisingly for the project. The figure has been calculated for the project, it doesn’t include Asiamet corporate overheads for things like it Beutong licences, the fees paid for the PR etc etc.

Surprised he can’t get away with such a claim with no challenge.

They initially told us

“production is currently choked back to a range between 200 and 300 bpd. Whilst this is in line with our pre-production aspiration for an initial stabilised rate, the indications of sustained potential for the well to produce at higher rates are under review, to see if modifications at surface can be made to increase the stabilised flow rate.“

So production was expected to be circa 250bopd with a hope to increase it.

It then reduced to 200bopd, so 20% lower than expected. Today has told us even that figure has now dropped a further 20% with seemingly no plans to increase it. This is the one revenue stream the company has - it’s akin to a trading update saying revenue will be down 20%.

Obviously on top of that they’ve confirmed there’s still no actual revenue because they haven’t agreed if taxes are applicable and if so who pays them. So PC are essentially holding the generated oil hostage, refusing to pay. The more I reflect and digest the worse it gets.

Agreed Doc, I think they’ll be a few down days whilst people digest. Obviously we both think a placing is imminent which will be at a discount and drag it down further. It’s only a full asset sale that can save this in the short and long term.

“And FYI, up to yesterday there had been virtually a 100% uplift from the 1.2p low of winter - it's just that you weren't smart enough to benefit from it.“

And you did?!

“Gazelle 1 well test planning is ongoing with potential to put the well on production immediately if the test is successful“

Is just carrot dangling. How long does it take to plan a well test and how will it be funded?

I take the Oil Sales agreement to mean the agreement for PC to pay for our oil, ie the commercial contract between PC and MATD.

How can PC have signed a commercial agreement that doesn’t cover who is responsible for each parties own tax obligations in the deal?! And let’s not forget the authorities were involved in signing off the arrangement

“Production is being trucked to the neighbouring Block XIX TA-1 facilities and stored. The commercial terms of the Cooperation Agreement with Block XIX operator have been agreed and the final wording is being prepared for sign off by MRPAM. Once approved, export paperwork for Block XX crude can be prepared and sales will then commence.“

It’s not credible.

We were previously told

“Custody transfer of Block XX oil takes place at the Block XIX processing facilities and PetroChina is responsible for processing, transport and export of the crude to the buyers in China”

That reads to me like we essentially sell the oil to PC, and they then onward sell etc.

So why are PC directing us to

“get confirmation from the authorities that there will be no customs, VAT or tax charges levied resulting from the Oil Sales Agreement”.

They’re basically saying they don’t know if the agreement they (eventually) signed requires taxes to be paid. If it doesn’t, as MATD appear to believe, is this not documented in the agreements ? Who pays the taxes, presumably the seller (MATD), in which case why are PC able to withhold payment? And how much tax are we talking about, as if it does need paying then the margin takes a hit.

It’s absolutely incredible.

“That sudden supply liquidity which has just been engineered“

The MMs didn’t choose to issue a terrible RNS. Bad News leads to a bad reaction in the SP.

They may already be into the soft loan. Suspect not as MB didn’t sound that keen on it, but they only had $3m at xmas so can’t be much left at all now.

“I think the news today is largely positive“

Ridiculous. Surely you don’t honestly believe that? Even if you do think that note the market has marked it down almost a third, so your thoughts don’t match the price.

The risk isn’t now of a raise, it’s not be able to raise.

He knew he hadn’t got payment and knew H1 was underperforming, so he’ll have known the news will have tanked the price, so why didn’t he raise beforehand?

They need to sell the field asap.

You’ll feel better for being mainly out here Doc.

Today’s update was so bad, it really felt like the company regressed into being a complete dog. It’s so so poor not to have been paid a penny, it makes the company look uninvestable

Nobody has even commented on the lack any reference to renewables.

The no payment bad news does bring a timer of hope to be fair. It’s clear to me that PC are deliberately delaying payment, which suggests they might be playing hardball for a wider offer for the field. Thats promising in the sense of a deal potentially being close, albeit it would be for a fraction of what people here expect and

Investor, you had Abzzba filtered here in November and hear you are now asking to sit on his knee for a story on oil field production. He’s completely discredited, he’s repeatedly insisted Heron1 would be doing multiples of what it’s actually doing.

Anyone claiming this drop is due to MM games or a 10year chart needs their head examining. It was a shocking RNS which is rightly being reflected in a huge drop. It’s not complicated, it’s just how the game works.

What’s new Proquo is the expected payment isn’t in the bank. To some extent that’s just a short term cash flow challenge but the underlying behaviour of PC and / or mismanagement by Buck raises serious concerns.

The other issue is the only producing well is performing much worse than expectations and those quick and easy fixes Abbza told us so much about appear to be off the table.

It’s a disastrous RNS which is reflected in the SP.

The thing is re the tax, they’ve had months of production time to figure this out. It surely lacks credibility to claim at payment stage they decided there was a problem?

It’s illuminating who isn’t around and posting today.

Abzzba - you really lose any credibility claiming that’s a “solid” update. It’s a massive car crash