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Agreed Bigbench. Mongolia's reputation as a nation that welcomes foreign investment in the o&g sector hinges on this being resolved speedily. It is in everyone's interest that it's resolved satisfactorily.
Morning all, nice to see us in the blue! Long may it continue.
I emailed the company as well Manro asking for clarification on what is happening with heron. Of course its very unlikely we'll have a response, presumably because it'll be classed as inside information. But we'll know what is happening by RNS soon enough.
Such an interesting time for matd at the moment. Red deer underway. Heron suspended until the land agreement issues are sorted. I would have thought we'll get heron and red deer results around the same time assuming heron resumes promptly? I know mike will be doing all he can to sort out the heron issues, the company will be undoubtedly furious with this delay. A lot of people have commented it's the same old matd but I really don't believe that. The company is run by an experienced board, obviously spearheaded by Mike who has built his career in the oil&gas sector with other companies. I'm not selling until petrovis does. Perhaps that's foolish, but they've invested far more money than I have and they're still in which gives me comfort this will all come good.
Macd_91 has been great with explaining some of the finer details behind red deer. Yes it's an exploration well, but it's probably unfair to call it wild cat in the same manner that snow leopard and wild horse were, which were true frontier exploration drills. We do know that red deer is targeting the same petroleum system that has been proven in surrounding basins and that it is in a block with proven oil. Admittedly it has a lower cos of success than heron, but 30/40% cos drills do come in so there's still everything to play for.
Agreed. The Board have not confirmed the timescale it will take to resolve, so saying it will take 100 days to sort has no more validity then saying it will take 10 years to sort.
I think we can all assume that the company will be working flat out to resolve this though and will be using whatever contacts they have in the industry to sort asap. I don't see it dragging on and it's highly suspicious this issue wasn't highlighted when matd followed all the standard permitting requirements issued by the regulator. Some delays might be incurred by getting the legal paperwork drafted and the necessary signatories in place to execute. Shouldn't take more than a fortnight to resolve at the most.
Can't see any trading data this morning, anyone else found this?
Thanks for helping me understand Red Deer more clearly Macd_91. Looking forward to the spud results now!
Would it be correct to assume that the presentation's emphasis on the prospect being a 3 way dip fault bounded closure, with large sand bodies and with the potential of an up dip stratiagraphic trap, all play into the idea that oil is likely to be trapped at red deer within the reservoir?
We all appreciate your contributions macd_91, the board is lucky to have a geologist who can help with these kind of questions! From your perspective, what's your gut feeling about the likely success case of red deer?
Thanks Macd_91. Very informative as always.
And I thought I was a heavy hitter with 450k shares! Well done Flava. If any of the drills come in then we'll most certainly be seeing multiples of this share price. Keep calm and carry on as they say.
Agreed Obelix and hopefully once the matter at Heron has been sorted we'll get a nice re-rate. Macd_91, if you could help us out with the red deer query that would be great :)
Glad to see we've held up well this afternoon, lord knows we could have done without another parabolic drop.
I've got a question about the June 2019 corporate presentation, if you skip to page 16 there's a dissection of the red deer drill. It's clear the drill is surrounded by dark blue, is it fair to assume that's a sign of oil? I'm comparing it to the heron seismic and the discoveries in Petro China's side of the border exhibited the same colouring. Thoughts?
Hope you're right aliay32. Although if it's simple to resolve it does beg the question why the problem hasn't been sorted already? Some have speculated that matd stopped drilling a while ago given that they hadn't gotten very far with heron. Anyway, I think if its sorted this week then we can breathe a sigh of relief and move on. More delays and things are more serious imho
Not sure about blue obelix but at least the vertical drop has been halted.
On the subject of red deer, anyone know why we've gone for this prospect over, say, Fox? I've been looking at the presentations and fox or even velociraptor look better than red deer. Not sure if I've missed something along the way.
Morning All. Here's hoping for a better day. If this objection from the provincial government isn't resolved by the end of the week (perhaps Monday at the latest), I think we can assume that it's serious and will be dragging on for a while. I may need to take a tough decision as to whether to sell at that point, we'll see.
It does make you wonder if this issue was dragged out to deliberately force matd to release an rns to the market. Obviously its only when bad news has been released to the public that the share price would nose dive and provide an opportunity for certain individuals to load up cheap. If this matter gets sorted soon then it would provide a certain credence to this view. Really hope this is not the case as I'd like to believe there is still a certain level of integrity in the world but you can never tell.
Not questioning the accuracy of that report, but you can't just pull out a generalised statement about a country and use it to conclude that matd's own problems are the results of government corruption. That's a huge stretch.
Corruption occurs in all countries across the world to various levels, however, it doesn't mean that the rule of law won't apply or that business/legal disputes can't be resolved rationally. I have hope's that matd will resolve this issue amicably with the provincial government. I think if it were to drag on then they would abandon the well rather than allow costs to run up needlessly.
Really hope it does get resolved Ojay. I own 450k shares, today has been painful to say the least.
Just seems strange to me. Unlike other posters here, I believe that Mike Buck and the Board are experienced enough to know what agreements need to be in place before spud. As the RNS said, this objection by the provincial government has never been an issue before, so what gives? What's the motivation behind? Bureaucratic pettiness? Or something more sinister with regards to walking down the share price? To quote my old latin master 'Cui bono'?