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Published on 17 Jan 2020
In an interview with London South East's Donald Leggatt, Petro Matad CEO Mike Buck set out his ambitions for 2020. Having drilled exploration wells in the West in 2018 and discovered oil in the East of Mongolia close to already producing oil fields late in 2019, he and his team are now working on the commercialisation of the Heron field.
"We found a test flow rate of over 800 barrels a day at Heron-1, a very, very pleasant surprise. We assess that there's probably about 160 million barrels in place, and the question is how much of that is recoverable. Petro China, our neighbours across the boundary of the block achieve around 15%, which would give us 25 millon barrels recoverable, and we would like to think with modern technology we can do better than that," Mike Buck explained.
With a General Election due to happen in Mongolia in the third quarter of 2020, the race is on to get Exploitation and other required licences in place before the drilling season begins in June. "The Government are very, very keen to see more oil exploration in the country and have been very supportive of our efforts. We are emphasising the importance of us having our licenses before everything stops for the election."
Funding for 2020 and beyond is required, and with 160 million barrels of reserves and a minimum of 25M recoverable barrels of oil, Mike Buck feels he is in a strong position. He is keen to keep his funding options open, and is looking at a combination of partnerships, farm-ins and possibly even equity. His focus is to get the field producing revenues as quickly as is feasible in order to make the development of the operations self-funding. "This will require an initial $10-20M to kick-start operations, and with economies of scale we hope to bring the costs of drilling Heron-2, 3 and 4 down considerably" said Mr Buck.
I have been buying regularly at these prices, most showing as sells ...
I have an abundance of patience, now we have oil.
Just have to get it out of the ground!
Once the RNS lands about the exploitation licence, and we have Petro China on board. We will look back and wished we had all bought more!
Well that’s my view anyway.
GLA
Petro Matad, the AIM quoted Mongolian oil explorer, announces the issue of 7,954,000 new ordinary shares of US$0.01 each in the Company ("Shares") under the Company's Long-Term Equity Incentive Plan ("LTIP") at $0.01 per share to Directors and employees.
Details relating to Directors are set out below:
Director
Options exercised
Resultant shareholding
Percentage holding of enlarged issued share capital
Mike Buck
4,455,000
8,725,006
1.30%
John Henriksen
1,737,000
3,802,213
0.57%
Application for admission of new Shares
Application will be made for the 7,954,000 new Shares, which rank pari passu with the Company's existing issued Shares, to be admitted to trading on AIM ("Admission") and it is expected that Admission will occur on 3 January 2020.
I’ve listened to the the pod cast over and over, and I can only see positives, especially if Petro China come on board, they can drill the wells cheaper than anyone else, still ongoing talks Gov, banks, and hopefully the big boys to take on the wild cat drills in the west.
I know it’s all if and buts, but surely they are being pro active, I guess the next couple of months will show us all how successful they have been.
I will keep the faith and continue to add..
GL all LTH
Master82, just click on the RNS tab, there is everything there you need to know...
The main reason for the rise in 2017 was the anticipation of the of oil discovery, once you have researched and listened to the pod casts, you will have a better understanding. GL