Member Info for Fronteracheckin

Abzzba you'll have to give me some reasoning instead of a figure out of the air mate, my reasoning is as follows;

Assumptions:

500 barrels per day

85% uptime (a conservative estimate for trucking, weather, and short maintenance periods)

$65 per barrel oil price

$25 per barrel operating cost (transport, power, staff, admin)

30% total tax and royalty once applicable

85% uptime does not mean the wells shut down in winter. Petro Matad produced continuously through last winter, storing oil on site and trucking it to PetroChina’s Block XIX facilities under the offtake agreement. The 15% allowance simply reflects normal operational downtime across the year from weather, maintenance, storage transfers, or transport scheduling.

Step 1: Annual barrels sold

500 × 365 × 0.85 = 155,125 barrels per year

Step 2: Gross revenue

155,125 × $65 = $10,083,125

Step 3: Operating costs

155,125 × $25 = $3,878,125

Step 4: Profit before tax

$10,083,125 − $3,878,125 = $6,205,000

That gives $6.2 million pre-tax, or around £5 million, at $65 oil and 85% uptime.

Step 5: After-tax (30%) scenario

$6,205,000 × 0.7 = $4,343,500

≈ £3.47 million after tax.

Step 6: Tax-free scenario (while $60m in losses remain)

Because Petro Matad has $61 million in carried-forward tax losses, confirmed in the 2024 audited Annual Report (Note 7 and Note 12), it will not pay corporate tax until those are used up. That means during that period, it keeps the full $6.2 million (£5 million) each year before royalties.

Once those losses are exhausted, net cashflow would reduce to around $4.3 million (£3.5 million) per year after tax and royalties.

If you prefer a slightly more optimistic but still realistic view, call it 90% uptime, which would bring yearly pre-tax income closer to $6.6 million (£5.2 million) and after-tax income to roughly $4.6 million (£3.7 million).

Just read that back - correcting my own timeline as this was all a bit rushed today - the Proactive interview with Mike Buck was obviously filmed before the Gazelle-1 flow results came out. He was talking mainly about Heron-2 mobilisation and the wider reservoir structure, not the actual Gazelle data. The good thing is that what he said about the field connectivity and confidence in the play has now been backed up by the new test results, so the point still stands.

Dyorimodyor

500 barrels a day at current oil prices generates roughly £3.5 to £4 million ($4.3 to $5 million) in annual net cashflow after tax, but because the company has over $60 million in carried-forward tax losses, no corporate tax will be payable until those losses are used up. On a pre-tax basis that equates to approximately £5 million ($6.2 million) per year in cashflow that can be fully retained during that period.

With Gazelle-1 performing strongly, the company has the opportunity to drill additional development wells along the same structure, each of which could tie into the existing PetroChina infrastructure and build production further without major new facilities.

These accumulated losses are clearly documented in Petro Matad’s 2024 audited Annual Report, under the financial statements section (see Note 7 and Note 12, which confirm total accumulated losses of about US $61 million). This gives the company a substantial tax shield for many years ahead, allowing most of its early production income to be reinvested directly into new wells and field expansion.

For me, that is why I bought in. The fundamentals have changed, the production is real, and the company now has both the financial structure and the operational plan to grow without relying on constant dilution.

GLA. Imo, dyor, casino, aim, yolo.

So I'm literally new here as of today. 1.1m shares, and looking to add more if my other investments come in soon. Here's a summary of my research from today, and why I invested (which I assume many others may be doing, more wisely and slowly than I, tomorrow perhaps? 👀)

Petro Matad has quietly ticked off most of the milestones that small-cap oil explorers never reach. It is now debt free, producing oil, and preparing to bring a second well online before winter.

The company already produces around 150 bopd from Heron-1, which operated successfully through last winter and sold oil under its PetroChina offtake agreement. That is proven production, proven sales, and proven logistics in Mongolian winter conditions. Oil is stored on site and trucked to PetroChina’s nearby Block XIX processing and export facility, so there is no pipeline dependency.

The new Gazelle-1 well has completed testing with strong results between 300 and 460 bopd with no water cut. The company has confirmed that the rig will stay on site to complete Gazelle for production by the end of October, which would take total output to roughly 500 bopd combined between Heron and Gazelle.

In a recent Proactive Investors interview, CEO Mike Buck confirmed that operations are fully mobilised at Heron-2 and that the company’s goal is to have it producing before year end. He explained that Gazelle’s positive results support confidence in the wider Heron and Gazelle reservoir, and that this phase marks a clear transition from exploration to commercial production. He also highlighted the push to complete work before the winter season while maintaining capital discipline, using production revenue to fund future drilling rather than repeated equity raises.

Financially, the balance sheet is one of the cleanest on AIM. The latest accounts show no debt, modest payables, and no bad debts. They raised £3.3m mid 2025 to fund this phase, and with production ramping up, cashflow will now start to offset costs.

A major advantage is the tax position. The audited accounts confirm over $60 million in accumulated losses, which can be carried forward to offset future profits. That means the company is unlikely to pay income tax for several years. Once the temporary 30 percent withholding by PetroChina is released, a short administrative delay pending VAT clearance, nearly all revenue will flow directly into Matad’s bank account.

The potential does not stop with two wells. Success at Gazelle-1 opens the door for additional development wells along the same structure, all of which can tie into the existing PetroChina infrastructure. The new grid connection at Heron also lowers costs and supports future expansion.

With a market cap around £20 million, no debt, proven production through winter, and a second well about to join it, this is one of the few AIM oil stories genuinely transitioning from explorer to producer... Cont

Just been through his other panic posts from this morning, and to answer his half guesswork 'dyor' comments, I'll dyor for him, because most of his posts are just guesswork being repeated.

First, “months of inactivity” isn’t accurate. Winter conditions limit new drilling, but production continues year-round. The company has already confirmed that the rig will remain on site to complete Gazelle-1 for production by the end of October, not pack up for the winter. Heron-1 is already producing, and both wells are under an active sales agreement with PetroChina.

Second, the idea that MATD “burns cash faster than it can generate it” doesn’t reflect current operations. The last raise in July brought in about £3.3 million, and the company now has revenue from oil sales to offset costs. In the pre-production years the burn rate was around $3–4m per year; with production coming online, that drops sharply. The 2025 raise was structured to fund this phase of completions, not ongoing exploration.

Third, the so-called “tax dispute” is not a dispute. It’s a paperwork process between PetroChina and the Mongolian tax authority to confirm VAT and customs exemption. PetroChina has been paying 70 % of each invoice and holding back 30 % pending that confirmation. Once finalised, that withheld amount is released. MATD itself isn’t being taxed 30 % and won’t be for years because it has around $60 million of carried-forward losses that offset future profits.

Lastly, talk of constant placings ignores what happens once both Heron and Gazelle are producing. Even at today’s oil price of $65, 500 bopd equates to roughly £3.5–4 million net cashflow per year, which covers overheads and leaves headroom to drill more wells.

In short, the company isn’t “inactive” or “out of cash.” It’s transitioning from explorer to self-funding producer, with an established buyer, stable output, and far less dependence on future placings.

'imo, dyor'

Heron-1’s 821 bopd figure was an initial test rate on a wide choke, not a long-term production number. Once the well stabilised and pressure equalised it settled around 150 bopd, which is normal for a single-zone sandstone producer. There was no collapse in flow, just natural stabilisation after testing.

Gazelle-1 is a different case. It sits in the same Block XX area but within a separate reservoir that shows higher pressure and better permeability. The company confirmed test rates between 300 and 460 bopd with no water cut, and stated clearly that no water was observed during the flow period. If any water had been present they would have had to declare it under AIM disclosure rules.

The acid wash was a standard cleanup process to remove drilling residue and carbonate deposits near the wellbore. The formation is mostly sandstone, so the treatment is not dissolving rock, only clearing pore spaces to allow oil to flow more easily. The use of a beam pump this time also improves fluid recovery and helps the well clean up faster than the older swabbing method.

The main point is that Petro Matad is not just testing. They are keeping the rig on site to complete Gazelle for production before winter and are already tied into an active PetroChina sales contract. That is a very different position to where Heron-1 started.

The stabilised rate will come in due course, but everything reported so far points to a clean, higher quality producer with no water and improved completion design.

Maiden, you can say imo and dyor, but I sure hope you dyor and read the RNS.

Water?

The latest RNS specifically stated no water was observed during Gazelle’s flow test. That alone kills the comparison with Block Energy. Matad hasn’t injected any water and AIM rules require disclosure of water cut, so if it was there, it would already be reported.

As for the “tax dispute,” it’s not a 'dispute' at all - it’s bureaucracy between PetroChina and the Mongolian authorities. PetroChina is just holding back 30% of invoices until they receive written confirmation that the oil sales are exempt from VAT and export duty. Once confirmed, that withheld 30% will be released.

And remember, Matad has around $60m in carried-forward tax losses, meaning they can offset profits for years before paying any corporate income tax. So there’s no 30% hit coming - if anything, they’ll get a cash boost once the holdback clears.

I encourage pi's to dyor, but please, dyor before you scare monger one company to another, when the basis reasoning of your point was quite literally, factually disregarded within the RNS.

Finally seeing a strong move here after weeks of low-volume drift. The share price has pushed cleanly through 0.30 today, breaking short-term resistance with conviction. The 15-minute and hourly charts show a clear technical reversal – moving averages curling upward, MACD turning sharply bullish, and RSI rising through 70 showing proper momentum.

What’s notable is the surge in volume accompanying the move. The recent drag down to 0.26 happened on very thin trading – a few sellers in an illiquid market exaggerated the drop. Now that proper volume has returned, price is correcting quickly back toward fair value.

On the daily chart, RSI has just bounced from oversold, suggesting the bottom is likely in around 0.26–0.27. A daily close above 0.31 would confirm the reversal and open up short-term targets at 0.34–0.38.

With the Dubai diamond auctions now underway through October, and equipment remaining on-site for continuous production, it makes sense that traders are positioning ahead of potential updates.

After months of selling into silence, this looks like the start of a momentum shift. Volume, structure, and timing are all finally lining up in VAST’s favour.

I'm still banking on the Chiadzwa community diamond project to be signed off, that'll be the absolute ace up the sleeve from AP. Selling diamonds for cash is one thing (which I'm sure will be spent very 'wisely' paying for our staff to fly around the world and assess our assets.. which have already been assessed?

The dream scenario for me is the CCDP being signed off with the gov, would also explain the radio silence, same thing happened to get the diamonds.

GLA, until then this is random noise or blatant insider trading, vast has always been a leaky share, so here's hoping 🤞

0.0002 spread, it's a share transfer between accounts.

Regardless, lots of buying going on and back at 0.3 is never a bad thing!

You guys need better platforms - I can quote 100 and 200 million buys on IG..

Clearing up the 30% Tax Misunderstanding

There’s been a lot of confusion about the 30% that PetroChina has been withholding from Petro Matad’s oil sales. This isn’t a tax on the company or its revenue. It’s a temporary precaution by PetroChina while Mongolian tax and customs authorities confirm that the oil sales arrangement is exempt from VAT and customs duties.

PetroChina has already been paying 70% of all invoices and is simply holding back the remaining 30% until formal confirmation is received. The company has stated clearly that it expects this withheld portion to be released once that confirmation is issued. It’s an administrative delay, not a charge.

Petro Matad also has tens of millions of dollars in accumulated historic losses from its years of exploration and development. Under Mongolian tax law, those losses can be carried forward to offset future profits. In practical terms, this means the company is unlikely to pay any corporate income tax for several years, even after the withheld 30% is released.

The only payments due to Mongolia are small royalties on gross production, typically around 5–8%. Once the withheld funds are cleared, that full 30% will flow directly to Petro Matad’s balance sheet, strengthening its cash position and reducing the need for future dilution.

In short, this is not a tax problem. It’s a short-term administrative issue that will resolve in Petro Matad’s favour once the formal paperwork is finalised.

Stock - your understanding of oil wells is clearly completely lacking - Winter shutdown doesn’t mean production stops — it mainly affects drilling new wells, not flow from existing producers. The latest RNS actually confirmed that the Gazelle equipment will stay on site, and that the company is prioritising this well for completion and production by the end of October.

Once Gazelle is tied in, it joins Heron under the existing PetroChina sales agreement — meaning continuous oil sales right through the winter months. The only pause is in new exploration or testing (like Gobi Bear-1, now pushed to 2026).

So this isn’t “months of inactivity.” It’s quite the opposite — they’re finishing the season in full production mode.

The difference between yesterday and today is huge: yesterday, MATD was an explorer with one small producer; today, it’s on the verge of being a multi-well, cash-generating operator with flows “exceeding expectations.”

Technically, there’s heavy resistance around 1.18–1.20, and a clean breakout above that could open a much larger move as traders start to price in the shift from exploration to production.

DYOR of course, but the RNS today changes the whole picture — production, not hibernation.

Post title:

🔥 500 Barrels a Day – The Real Numbers (and Why This Is Just the Start)

---

A lot of people still don’t realise how close Petro Matad is to becoming a proper cash-generating producer. The company’s already secured a sales agreement with PetroChina, and that contract is structured to add more wells easily — no fresh negotiations needed. Every new producer can plug straight into the same infrastructure.

Here’s the simple maths at today’s oil prices:

500 barrels a day × 85 % uptime = ~155,000 barrels a year

Oil at $65 = $10.1 million revenue

Operating costs (power, transport, admin) around $25/bbl = $3.9 million

That leaves $6.2 million profit before tax, and after Mongolia’s ~30 % combined tax/royalty, about $4.3 million ($3.5 million GBP) net cashflow per year

That’s roughly 23 % of the current £15m market cap — every single year, from just two wells (Heron + Gazelle).

With Gazelle testing above expectations and Heron stable, these two alone could fund the next wells internally. And because the PetroChina deal allows each new well to slot straight in, scaling production becomes far cheaper and faster.

---

💡 Bottom line:

MATD now has production, a ready buyer in PetroChina, and a clear path to growth without endless dilution. 500 barrels a day is just the start — once Gazelle comes online and more wells tie in, cashflow can multiply fast.

You know that's AI calculated accurate right? And it's.. a good thing?

There’s been a lot of chat about what 500 barrels a day would actually mean for Petro Matad financially, so here’s a straightforward breakdown using realistic numbers — not hype.

1️⃣ Oil price

Assume $80 USD per barrel — around current Brent levels.

2️⃣ Gross revenue

500 bopd × 365 days = 182,500 barrels a year.

Allowing for downtime (winter, maintenance, etc.), call it 85 % uptime, so:

👉 155,000 barrels sold × $80 = $12.4 million annual revenue.

3️⃣ Operating costs

Typical lifting, transport and admin costs for a small onshore producer in Mongolia are about $25 per barrel.

155,000 × $25 = $3.9 million in annual operating costs.

4️⃣ Profit before tax

$12.4 m – $3.9 m = $8.5 million.

5️⃣ Taxes / royalties

Mongolia’s system takes roughly 30 % of profit once you combine royalty, corporate tax and duties.

30 % × $8.5 m = $2.6 million tax.

6️⃣ Net profit (after tax)

$8.5 m – $2.6 m = $5.9 million USD net cashflow.

At roughly $1.25 = £1, that’s ~£3.8 million per year.

---

So, even with winter downtime and full tax accounted for, 500 bopd produces nearly £4 million a year in profit.

That’s about 25 % of the current £15 m market cap in yearly earnings, from just two wells operating steadily.

Good luck boys and girls!

Bit of perspective while the doom squad keep spamming the board every ten minutes.

Yes, the price has dipped below the 0.30p placing level, but the company has just raised £4.5 million, is debt free, and for once is properly funded to deliver the next phase of its hydrogen pivot.

That funding covers all technical and economic studies, FEED preparation and government revenue support applications, which are exactly what’s needed to move toward a JV or state backed contract under the UK’s £20 billion hydrogen strategy. The National Gas MoU is a serious platform to build on, and TR1s from any long holders could appear at any time. Add in the ongoing Loxley appeal and there is plenty of potential news ahead.

Meanwhile the resident deramper clearly needs a hobby. Posting doom all day doesn’t make the company’s cash vanish or the projects stop. The more desperate the deramp, the closer we probably are to the bottom.

At these levels the market is valuing a fully funded, zero debt hydrogen developer at less than the cash it just raised. When the next real RNS lands, whether it’s TR1s, JV progress, or funding confirmation, expect a sharp rerate. Until then, let the trolls shout into the void. Some of us prefer watching facts, not fantasies.

Will be an interesting week for sure.

I hope some big names appear on these TR1s.

Interesting movement today, 45% dilution, on top of billions of shares already in issue.. but the reality is the volume is tiny compared to the new share count.

UKOG now has ~33 billion shares in issue after this week’s fund-raise blitz. Today’s entire volume is only about 4 billion shares – barely 12 % of the company. That means almost 88 % of the stock hasn’t moved at all. How many of today's shares have moved from short to long term holders hands?

In other words, the vast majority of holders are sitting tight rather than dumping into the market. Price action on AIM is always driven by the small bit of free-floating stock that trades – but don’t confuse that with everyone bailing.

If/when real news lands (JV / gov revenue support / FEED sign-off) it only takes a fraction of the register to move for the price to rerate fast because so many shares are parked and not trading.

GLA.

Mer: no need to be rude 'You ignorant uneducated idiot'

What an amazing example of idiotic hypocrisy. No need to be rude. Followed by far worse. What a tool.

P.s uneducated with a doctorate and 3 masters, with two published, peer reviewed articles.

What have you achieved in the realms of education, you ignorant uneducated idiot?

So many sells? The volume is drier than ever you tool.

What you mean is why are there so few sells? 4 billion (BILLION) shares in issue, and yet not even 1% of them are being sold?

You could rephrase your post to "Why are 99%+ of the shares being held tightly and not being sold??"