The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Our founding company and majority shareholder Petrovis, are still a major part of the oil industry in Mongolia. Mike Buck is currently sitting on a loss in his investment in Matd.
Local access will have to be granted eventually unless Mongolia wants to be paying off a loan for a refinery that will never be used.
The idea that Matd is an elaborate ruse to fleece private investors of their money is just an incredibly unreasoned argument.
The communication from Matd is exceptionally poor and their ability to achieve time targets is even worse but it still remains an incredible investment from it’s current mcap of £18m or $20m considering it’s NPV 10 is around $250m - $480m.
Happy to remain invested as long as I have a few years left on this planet.
Have a good week fellow investors.
“Foreign investors claim a bias against them if they pursue legal action against a Mongolian state-owned enterprise (SOE). To our knowledge, no foreign plaintiff has ever prevailed against an SOE in Mongolia’s courts. Mongolia-based legal experts claim foreign investors and exporters may experience preemptory, non-transparent court treatment up to outright discrimination from judges. Most investors and legal experts advise using legal, non-judicial dispute resolution mechanisms when confronting Mongolian SOEs.“
We’re not a foreign enterprise, our parent company is Mongolian. But I do understand your point.
It’s been years, it may be more years but there are a number of reasons as to why I’m still invested apart from being underwater lol.
1. Petrovis - Parent company with majority stake. Stable company. Large presence in Mongolia.
2. Mike Buck - I know, I know but he has found oil and has invested his own money into Matd. You could say it’s our money but he knows it’ll come good eventually or he wouldn’t have bought millions of shares.
3. This part from the last RNS that highlights that Mongolia NEEDS our oil. “ Mongolia has a high-profile project underway to construct a domestic oil refinery that will need Heron production.”
4. Our current mcap is £21m when we are sitting on a potential recovery of 60m barrels in Heron alone.
There’s a re-rate coming and that’s why I’m staying.
Best wishes
J.A.B
Quick summary from memory. Doug McCaig, CEO in 2011 had skill in writing RNS’s releases which whipped shareholders into a frenzy but turns out he wasn’t very good at finding oil. He drilled block XX in the wrong place. Our current CEO Mike Buck has however drilled in the correct place in block XX and found oil. Estimated recoverable of circa 60million barrels. Local access permits and covid border restrictions have delayed planned exploitation of area.
Extensive surveying of blocks IV and V provided Matd with estimates of between 9billion and 23 billion barrels of oil.
Drilling in block IV proved unsuccessful. The exploration licence for block IV has been handed back.
Block V has proven oil and planned drilling of the Velociraptor area has also been delayed due to covid border restrictions.
There is huge potential here, you’ll just need a lot, and I mean a lot of patience.
That’s why a lot of us continue to be invested.
Good luck, whatever you decide.
Regarding my last post. What I am trying to say in plain language is that ……
The only c#nts that know what is going on is the c#nts running our company and they know feck8ng everything, right? So why aren’t they selling?
I’ll tell you. It’s because they know that at some point in the future, COVID, environmental and local govt barriers are going to be surmounted and then the beast will be unleashed.
We’ve got multiple millions of barrels of oil. Stop being feckin spoilt children and accept that not everything happens yesterday. We will produce oil soon and then you’ll all be glad you can say you were there during the ****ty times .
The ones that know, know, you know.
Here’s the way I see it. COVID has fecked us big time and I mean BIG time.
We have a parent company Petrovis who have invested tens of millions in the project Petro Matad, They have previously dismissed incompetent chief executive officers, Doug McCrae and Ridvan Karpuz.
Mike Buck has came in as CEO and invested a substantial amount of his own money in buying shares in Matd. His current average share price is 3.5p.
Whatever you may think of Mike Buck, he, like everyone else here is invested and wants the very best for this company as his investment needs to realise profit before he sells.
He is currently under water like most of us and every one of us would love to be in his position and know absolutely everything about this company. Then we would be in a position to make informed judgement calls regarding our investment.
We are not the CEO of Petro Matad and none of us ever will be so we have to use logic and realise that if our CEO was not confident of the investment potential here and our parent company was not confident of our investment potential here then neither would have participated in last year’s placing.
There are reasons why we are not producing oil yet and it is obviously out with the company’s hands but it will be resolved at some point and at some point our faith will be rewarded.
I’ve been here 7 years, I can wait a little longer.
Conspiracy theories are 99% bull****. Look at the bigger picture.
Manro, your last post makes me question if you have any knowledge whatsoever about Petrovis and Petro Matad and the fact that two other people recommended your post suggests that you are not the only one.
You wrote “ Petrovis is a prime structure which has created PM aiming as its main goal - to rob international investors“. and “ Specially when investors' money is flowing in their pocket freely and without any of their own efforts”.
For what it’s worth and disregarding previous investment by Petrovis, do you know that they invested $2.1 million in the placing last year? That is hardly the hallmark of a company lining their own pockets.
I do agree that timescales are not being met and the lack of communication leaves a lot to be desired but the fundamentals remain. We have an awful lot of oil to extract.
Have a good one.
There is absolutely no point in building a refinery if the Government and MRPAM are not going to allow companies to extract oil from the ground.
May as well send the $bIllion back to India and say sorry we changed our minds.
I’m very happy to hold.
Petrovis would have sacked Mike Buck a long time ago if they thought he was underperforming.
We are just living in extraordinary times with unprecedented restrictions.
It will get better, eventually.
Have a good one.
Agreed Ojay. I despise the bickering that goes on here especially as we all want to see Matd do well.
We all want answers as to why it is taking so long and most of us can reasonably accept that COVID and the subsequent border restrictions have been THE major hindrance in our advancing the planned work programme.
Unfortunately, even although we are guaranteed an RNS release this week, there will be more questions forthcoming and more board bickering as a result.
Have a great week and hope that Mike and Matd blow us out of the water with a brilliant RNS release.
I guess I’m just like everyone else here. We’ve all been invested a long time and we all understand the potential here. We all want Mike to get it done, we’ve given him a lot of time, he’s found oil and we all wait patiently for news that we are finally an oil producer.
But this is what excites me and I believe it this what excites us all. When that RNS lands, you know, the big one. The one that says we are here and we are feckin huge and we are all going to be rewarded in the extreme. That one, you all know the one. The one that changes all our lives for the better. It’s coming and I, for one can’t wait to see my investment grow exponentially in front of my eyes.
Please make it happen Mike, make us all the beneficiaries of an overload of endorphins, bring a huge feckin smile to all our faces, and make it soon, please!
“in the end it will be worth the wait.”
Exactly. Current price of oil $123 per barrel. Estimated recovery at Heron alone between 33m and 60m barrels or between $4billion and $7.3billion.
Current mcap £27m.
This will go stratospheric when Mike releases that RNS.
Come on Mike, make it happen and make it happen soon please.
Will we exploit Heron this year?…..Hopefully.
Has COVID been a hindrance? ……Absolutely.
Is Mike Buck doing enough? ……..Possibly.
Is Matd still a good investment? …..Definitely.
Things are starting to move again, restrictions are being lifted. One day soon the Mother of all RNS’s is going to be released and we are all going to be rewarded for our patience and faith in Matd,……..Hopefully!
Good luck all and for all our sakes, please be soon.
Ok. Had a drink, and some time to go over previous RNS releases just to clarify block XX and the confusion that Petro China are drinking from the same pool.
My understanding is that although there are potentially billions of barrels of oil in the Toson Uul basin,
it is not contained in the one big pool. That is why The Heron oil field is referred to as a structure.
Now I bet many of you didn’t know that contained in the block XX exploitation licence area are a number of different structures. Some of you may have heard of the Gazelle prospect but there are others called Antelope and as some may recall, Red deer.
Red Deer has an actual estimate of 3 times the size of Heron.
The section of the Toson Uul basin contained in Petro China’s area is widely estimated to have 2bn barrels of oil. They have access to roughly 40% of the basin.
Our portion of the Toson Uul basin is 60% and if the oil is evenly distributed throughout the basin we may have access to 3bn barrels of oil.
I don’t think Hamm’s option 5 scenario would happen as the major oil distributor in Mongolia is our founder and majority shareholder Petrovis.
Keep the faith and maybe at some time in the future we will be able to repeat the words of Hyman Roth in The Godfather II, ‘Michael, we’re bigger than US Steel.’
Enjoy the rest of your weekend
Had a look at EME’s previous RNS releases. Secured drill for Jade prospect (offshore) in November 2021 with declared target of spud late December 2021.
Now planned spud April 2022. Just 4 months late.
We haven’t even reached the declared time period set by Matd and yet our management is incompetent.
Our time will come. We’ve waited long enough, I think we can wait a little longer.
Have a nice weekend and enjoy the sunshine.
Considering daily production targets have not previously been disclosed by Matd, it would infer the figures have been suggested by willing JV partners and the preceding RNS hints at DQE.
Waited a long time for little old Matd to become producers.
Nearly there. Gla