Member Info for Doc83

MB either (inexplicably) didn’t realise the need for a construction permit OR it’s a new process/permit dreamt up by the Mongols. I wouldn’t put it past the latter.

Thornogson, "The Heron 2 spud was solid news."

But what about the rest of the RNS? Solid it wasn't, IMO.

Fruits, I agree this is a blip overall for TFG, although £60m down, they'll still be some questions asked.

But I was talking about SNG specifically - for the SP to be down 98%, that's more than a blip.

Master - so are you also concerned this permit issue might drag on???

Dippfs: "they have enough capital to ignore any short term fluctuations - they fully expect blips in the road"

Jeez, I'd say this is a bit more than a blip!

Been out most of today and thankfully missed yet another drift down for the SP, although no surprise following that utterly pointless RNS that as usual created more questions than answers.

Also, some cracking posts today...

Aeschylus on the woolly RNS, absolutely right... "encouraged...possible agreement". Cheers, Mike, you're really selling it! :"We are encouraged by the progress of discussions on cooperation with PetroChina [Co Ltd]" "Discussion between the two companies are working towards a possible agreement"

I see Hamm has flopped back to the dark side and master82 is back calling for MB's head... why, if we're all on track now and MB is delivering what he promised??? Maybe it's because as one poster quite rightly pointed out:

"It looks to me as though MATD were either late in applying for the construction permit or did not realise that one was required. In either case it is incompetence which may jeopardise MATD becoming a producer in 2024."

And then this gem from Velocoraptor: "Absolutely ZERO indication that we are not all systems go for production."

Zero indication? How about the fact we are missing two very important pieces of the puzzle - a deal with PC so our oil can go somewhere and a construction permit to actually get the bl00dy stuff out of the ground in the first place!

Aeschylus, Mongolian bureaucracy! But again, the point is more that if striking oil the SP should spike sharply on such good news.

Gobi probably would take 5 years to get to production. But the SP should spike sharply if oil was hit. That might be the only ticket out of here.

A laughing emoji was the closest I could find to a facetious one. The point being, these permits take so damn long in Mongolia, best to get them in ASAP. I mean, I’m confused as to how a LP doesn’t automatically come with a construction permit?!

I said months ago I was concerned on the PC talks. They’re still rumbling on, that’s the simple fact. I still think we’ll be ok, but I certainly don’t consider it a 100% guarantee like some on here. Will be happy to see the next RNS with it all sorted… 🤔

And yes, safe to say our seller is still about, 3 x 500k blocks gone within 20 seconds of each other.

Ra11adw2 “Whats wrong with selling?”

Well more sells than buys tends to have a negative effect on the SP! And the facts are that, right now, we do not have the required permissions to use Heron 1 and 2.

I hope MB has already put the construction permit in for Gobi 😂

Sells outstripping buys by 5 to 1. It wasn’t a great RNS. Simple as that. Got to hope the next RNS (probably in a fortnight) tells us that permits and PC deals are finally sorted. Otherwise we’ll be hearing the same excuses on here again.

“PETRO MATAD+ (MATD, House Stock, XXp) – Heron-2 drilling underway

Petro Matad, the Mongolian E&P company, has confirmed it has started drilling the first development well on the Heron oil discovery on Block XX. The Heron-2 well is targeting the same reservoir units as the Heron-1 discovery well, with drilling scheduled to take around 30 days before logging and testing. Management hopes to bring the well into production as soon as late 2024, if successful. Mobilisation activity for the Gobi Bear-1 exploration well (also on Block XX) is underway ahead drilling scheduled for mid-September.

Today’s update confirms that progress is also being made towards first commercial production from Heron-1. Negotiations with PetroChina and regulator MRPAM on processing, transport and sales arrangements via PetroChina’s Block XIX facilities are ongoing, with an onsite review of logistical options planned. We anticipate further updates from the company in the coming weeks as progress is made towards first commercial production, and the drilling programme continues.

+ Shore Capital acts as Joint Broker and Nomad to Petro Matad Ltd. In line with our conflicts of interest policy, we do not have recommendations on ‘House Stocks’”

“It's all about verifiable progress which is happening apace“

But it’s not. The PC deal and permits are dragging their feet. And I also do wonder why we didn’t apply for the construction permit much sooner. We’ve applied for Heron 2 before the drill bit started turning, so why wasn’t Heron 1 sorted way back? I’d like MB to answer that one.

“One step closer guys. Great news today, ahead of schedule too, with heron-2 spud a week earlier alongside Gobi spud much sooner than expected”

We’re not ahead of schedule. The recent presentation said Heron 2 would be drilled AND completed by end of September. We’re told drilling will take around 30 days, so it’s likely to fall into October. Not a problem for me, but misleading to say ahead of schedule.

Same for Gobi spud “much sooner than expected”. We were told late Q3/early Q4. Well mid September is pretty late Q3! So we’re on track here. Not much sooner than expected.

But you keep ramping. If it gets the SP up to 10p, great.

“For those that dont work in large corporate firms, approvals take time”

Or, if you’re a LTH in MATD you’ll also be well aware!

Superb update? Said like a true trader.

We knew H2 was to be spudded. The two potential hurdles of the construction permit and PC agreement are still to be resolved. I’d have rather MATD waited until the interim half year report and told us it was all sorted then.

*10 days

I thought the construction permit usually took 19 days? And why are the PC negotiations still not finalised, when we were told in the past that a broad agreement was already in place?

Jakaas, considering Aeschylus was the only person today who has mentioned the PC contract and construction permit, you didn’t need to mention any names 🤦🏻‍♂️😂

Back to the well hole, I was reading some old RNS’ as I’m sure they mentioned how they’d plugged the hole, but came across this which I thought was worth us remembering:

“ The zone flowed oil and some associated gas to surface without the need for any artificial lift. This is exceptional for the Tamsag Basin where only a few of the hundreds of wells drilled have had the capability to produce oil to surface on natural flow. The peak production recorded during the test was 821 barrels of oil per day ("bopd")”

I’m did find this online… no idea if it’s what MATD would do at Heron:

“ When oil wells are drilled, the next step is to insert a steel casing to protect the integrity of the borehole, preventing loose material from collapsing into the well and causing blockages. These casings also prevent the oil and gas, which is under high pressure, from escaping out into the surrounding rock and soil and migrating to the surface, where leakage of methane can play a significant role in contributing to climate change. But there is always a space, which ranges up to a few inches, between the casing and the borehole. This space must be fully filled with cement slurry to prevent leakage and protect the steel lining from exposure to water and corrosive chemicals that could cause it to fail.”