Maybe it's time to stop worrying about each other and being negative and concentrate on the great prospects we have at Heron. If Red Deer does come in we will be in a fabulous position, then Gazelle with a fairly high CoS. However, it does appear that Heron is better than PetroChina's acreage to the north and we are in a position of becoming a producer very soon.
Good luck all when the results of Red Deer come in during the next few days.
Everything is a risk, nothing is certain, money is not given away, besides, not everyone has heard of this company. That said, if all goes well we should see a lot of upside from here. The mkt cap is just over £13m so any good news about Iraq is likely to increase this dramatically. Why else would two very rich, high profiles buy in? At the moment it's a waiting game.
Take a look at the satellite image of Heron and then move it north to where PetroChina have drilled, there are so many wells, tens of them, maybe 100. If Heron flows at 200bbld that would be about 73000 barrels a year. In ten years it wouldn't even reach a million and yet we could have 25m as a rough mean estimate. But if we have Heron 1,2,3,4,5,67,8,9,10... etc we will start to make a dent in the reserves and bring in a decent amount of money. There are already some pumps in the warehouse so we may as use them! So with ten wells and PetroChina involved to cut our costs we can drill as many as is viable once the weather is warm again. It frees Matad up to concentrate on other prospects. It also gives us borrowing power, no more dilution. With 10 wells and 2000 barrels a day - you do the maths as they say. Heron has been vastly undervalued but maybe that's because they have not done the flow tests even though the prognosis appears better then those producing wells across the border. We will soon know everything. If Red Deer comes in we may need even more help, another farm in perhaps but if Velociraptor proves what is suggested we will attract some very deep pockets. Excitement or what?
About 13mins 10 secs
Yes, good news Gunner1. They met with PC some time ago and PC wanted to see an oil discovery before entering talks in earnest. Now that has happened PM and PC can work together to optimise the benefits of a farm in/unitisation. It goes to show they are confident of a commercial oilfield at Heron.
Stick with it SYFreshPrince as it appears Heron is commercial but that needs to be endorsed with flow tests. Watch and listen to the presentations, Velociraptor is the 4th well that will be drilled and that is the first of the big targets. If successful, and the CEO is itching to get this one drilled, we should have a ten bagger - by November!
Things rarely go to plan and the oil business can move at glacial pace with plenty of setbacks but when things go well the results can be phenomenal.
The company announces that at Heron-1 TD of 2,60m has been reached with gross reservoir intervals appearing to be very similar to the productive reservoirs found immediately to the north in block XIX. Casing is now underway and discussions have taken place with the testing contractor to determine how quickly kit can be mobilised to the location. The timescale should be within one month and hopefully a great deal less, as the company are keen to get a flow rate and to get stimulation of the well underway.
The primary target was encountered at 2,803m some five metres shallower than expected which I am told is a good sign as was the predominantly sandstone interbedded with shales and siltstones found slightly deeper. The company are ‘encouraged and the well is better than expected’ and in my call with CEO Mike Buck this morning he was clearly delighted, particularly with the porosity and permeability in the formation a pleasant surprise.
Petro Matad is only up 5% today which is a touch parsimonious but to be fair puts it up at or near recent peaks and the market knows that they are also drilling the Red Deer well at the moment. Recent speculation about that well is just that, after some slight delays due to kit on site the bit is only ‘close to objective depth’ but should reach TD in mid September before logging.
The rig will shortly move off this site and move to drill the Gazelle-1 well which it should spud in late September which means that there is still plenty of excitement due for the company. Should Heron go on and be the success that it seems they will be able to kick on with plans to make the next steps of the operation to start producing commercial hydrocarbons from Mongolia, which they thoroughly deserve, after all some of us have been waiting a long time for this moment…
It seems they are now pleased!!!
We are pleased to announce the results of drilling and wireline logging at Heron-1. #MATD Please see the full announcement here: https://londonstockexchange.com/exchange/news/market-news/market-news-detail/MATD/14218048.html
This is an excellent result and I expect Petro Matad and PetroChina to team up and develop the entire Heron structure. Pay no attention to the derampers as this appears to be better than the commercially producing wells on the next door block. I see the derampers are not quoting the RNS accurately so beware, they have other motives.
'very similar to the productive reservoirs found in oil wells immediately to the north in Block XIX.'
'Within this interval (77m of pay) the logs also define three zones with a total gross thickness of 22 metres (14 metres net) exhibiting better porosity and permeability characteristics than is generally seen within the Lower Tsagaantsav at this depth including in the nearby wells in the T19-46 oil field in Block XIX.'
The results of the Heron-1 well are encouraging. Along with the well and wireline logging data being consistent with our pre-drill prognosis, there is also evidence of zones with better than expected porosity/permeability characteristics. The well will now be tested and we are pushing the contractor to mobilise equipment as quickly as possible. Further updates will be provided in due course."
A good idea for anyone thinking of a takeover would be to go back over the presentations, including video ones. Petro China have spare capacity for oil from Heron and block XX but little else. Unitisation will give them enough oil to refine as well as halving theirs and PetroMatad's drilling costs to circa $1.5m a well as they will share the drilling. There is no need to go on about takeovers etc, PM want to drill in other locations and have possible farm in partners on the sidelines waiting.
Why would PetroChina make a bid for the company if they find oil at Heron? Why would PM even countenance the idea? That makes no sense at all, PM is much more than block XX. Would the bid include Velociraptor, for instance? PC have already said they are interested in unitisation and I should think serious discussions along these lines will quickly follow any discovery at Heron.