Member Info for Doc83

I’m just not sure that news will do. Doesn’t everyone here think the PC deal is a done one?

But I hope you’re right. It’s getting mildly frustrating seeing the SP decline when we’re supposedly getting such good news.

“Well according to the AGM resolutions Richard Marsden is offering himself for re-appointment”

No shame. I still think there’s a good chance he’ll go.

“There a couple of RNS that could drop around then that might change the course of the narrative substantially.”

Such as? Genuine question. Because we’ve had plenty of news this year that could be considered very positive, yet we’re as low as we’ve been for quite some time.

I now firmly believe that only a Gobi strike will meaningfully lift this SP. I can’t see a PC deal or permit being confirmed as moving this much.

"Ill end up like Doc none stop finding issues with this share and I dont want to end up like that lol"

Thanks, Kevin! But I'd like to point out that I'm not finding issues with MATD. The Mongols keep finding issues, the latest being a construction permit that no one knew about!

Bigbench, you were saying exactly the same thing when we hit 7p. Exactly.

“Thats all that counts”

Sadly not.

Jazim, I'll answer that. Yes.

As per the RNS today:

"As previously reported, the application for the construction permit to install the long-term production facilities at Heron-1, which could only be initiated after land access had been approved in late May..."

We received Land Access approval late May, confirmed in an RNS on 29th May. The capital raise was announced on 25th June with no mention of a construction permit being required. And also the presentation and Q&A on 10th July, MB did not mention this.

Jazim - that was copy and pasted from the latest Progressive report released today.

N1 - I'm not surprised in the least. We've had so many false dawns, I've said before, the market will want to see actual oil in a barrel and money coming into the PM bank account before it believes anything. And even then, I think we have to accept that that's not going to see the SP jump from 2p to 10p. Only a big hit at Gobi will now do that, IMO. With just Heron, at best we might see a steady climb to mid single figures.

"To think Progressive Research gets paid for this, nice work if you can get it."

Indeed. It is verbatim from the RNS.

2/2

Conclusion. Although the delay to the permit for the long-term production facilities at the Heron oil field is unwelcome, management is moving the project forward and, with the use of temporary facilities, should soon be able to start production. The agreement in principle with the operator of Block XIX is a useful positive, and will allow Petro Matad to quickly move to monetise its production. This should see the company begin to generate cash flow, a useful step in terms of both growth and maturity of the group, and long term shareholder value.

1/2 Petro Matad has this morning released its interim results and an operational update on the Heron-1 well. The interims are of minor import as the news has been covered over the year to date. However,on Heron-1, Petro Matad has encountered some delays in getting a permit to install long-term production facilities. This is not a major setback as the company will use temporary facilities in the short-term. The company has also reached an agreement in principle to sell and export through the facilities in the adjacent block XIX. This should allow production to start in October.

Long-term facilities delay –not the end of the world. Petro Matad has announced that it has suffered from delays in obtaining the permit for the construction of long-term production at Heron-1. There is a new provincial Governor, appointed in September, and he has said that he needs time to review the application. There is no indication how long this review will take. In the light of this, Petro Matad has proposed temporary facilities to be positioned on the well site. This has been agreed by the industry regulator, MRPAM (Mineral Resource and Petroleum Authority of Mongolia).This is expected to be completed within three weeks and will allow Petro Matad to start producing and generating cash flow from the Heron oil field.

Agreement in principle on oil sales. Petro Matad has held high level meetings with the operator of Block XIX, 20 km to the North of the Heron field. The companies have agreed in principle the mechanism for processing, storage, export and sale of the Heron crude through the facilities located on Block XIX. This will be incorporated into a cooperation agreement which will be presented to MRPAM for its approval. This should allow sales of oil to start in October.

Interim Results. Petro Matad has also released its interim results. These have little impact given that the main driver will be getting Heron on stream, allowing the generation of cash flow. The group posted a loss of US$2.6m compared to a loss of US$1.9m in the previous year. The group had cash balances at the end of June of US$1.9m but has subsequently raised some US$9.4m (pre costs)which should give management sufficient funds for the development of the Heron oil field, exploration of the Gobi Bear prospect and development of the exciting renewable energy projects in Mongolia,through SunSteppe Renewable Energy.

Cont...

Price pushing back up… really?

Investor, there have been many stages we’ve not been at before. The problem is that another stage always appears 😂

“Don't forget that some on here were saying for weeks that in their opinion the PC agreement is the single biggest hurdle...We can take it now as sorted, and still people moan.”

Yes, I’ve been probably the biggest moaner on this. But we can’t take it as sorted. An agreement reached in principle (same was said about 5 years ago btw!) but not yet signed off. You’ve been here a long time… you should know that until something is signed, don’t assume anything.

I’d like to ask MB what the rationale was behind us building a basketball court for the locals? Presumably an attempt to bribe. But it doesn’t seem to have worked. Maybe we stop giving our money away now.

“and has told the Company that he needs time to review the (construction permit) application. In light of this, and with no indication of how long this review will take”

No indication of how long it will take! MATD will absolutely have asked this, but have been given short shrift by the governor.

“The concrete base has been installed for equipment, why hold us up.”

Corruption covered up as bureaucracy.

There is no need for MRPAM to be involved with a commercial choice and negotiations between MATD and PC. There is no need for the governor to not put his stamp on the construction permit, when there are hundreds of such sites already surrounding us.

Will we be producing even this time next year? I’m not convinced because it seems like new hurdles are continually created for the persistent MATD to jump. I’m sure they have plenty more they can put up yet.

On the construction permit timeline, it does appear that MB knew about this pre raise. If he did, that was very naughty to omit such a detail.

WOS - Thornogson made the point to Investor33 that accusing you of being a paid ramper is lame and means he’s lost the argument already.

I’d suggest you spinning the usual “they’re a trader or troll” line is just as bad. I have been concerned about the PC deal for some time, and later once known the construction permit and this new governor. Whatever you might say, we do not have that PC signed just yet. And the governor hasn’t signed off the construction permit.

“No more issues here now.

This can only go up,up and ,up”

Come on, Master82. You’re seasoned at this now. They’ll always be another issue for MATD to deal with.

WOS - let’s see what the market thinks of today’s announcement. That’s the real proof of if this particular RNS is positive or not.

In summary:

- we still do not have a deal signed and agreed by all parties with PC.

- we still do not have the construction permit signed off.

Yes, it reads kind of positive. But there’s always a caveat, some kind of fudge or temporary measure put in place. I agree with Thornogson, somehow, we trundle on and do make (very) slow process. But it makes me continue to wonder if dark forces (corruption) is at play here.

I mean, haven’t we just built the governor a new playground for the kids FFS? Why bother if he’s not going to play ball. And let’s not kid ourselves, new to post or not, it doesn’t take long to review this. There are quite literally hundreds of PC’s rigs exactly like Heron 1 surrounding us. So he’s being deliberate obtuse. Why?

So the governor is digging his heels in then. What a surprise.