Member Info for GKahn

Magic
You might want to vote first and then see whether your shares might be worth rather more than 5p - who knows? but I think we will find out soon whether there is any substance to the rumour and particularly whether there is a concert part.

If the rebel group has been refuffed, they can request an EGM and propose board changes. Apparently, there are group of significant investors, many from Edinburgh, who are known to one another and none of them on the board. Things could become interesting and hopefully positive for shareholders.

If true, this could be positive for shareholders.

Alfacomp
I will study your latest posts and links, for which thanks. In the meantime I have searched and cannot find any posts from you on this board over the past 12 months which is odd given your earlier post

Alfa
The stats show that you have posted three times in the past 30 days, all today. So we must have missed your previous posts on FAR's value?

I see he has responded while I composed my post

GeorgesZibbos: Many thanks, interesting connection in which case we can expect Alfacomp not to respond. He is a very frequent participant on the Bushveld board and his first appearance on the FAR board!

Alfacomp: You say that they will never get a patent. Is this because it is generally accepted as being impossible to make electrolyte from Ammonium Metavanadate?, or because of competing patent applications? or other reason? As you have experience, it would be helpful if you would provide the board with clarification.
Many thanks
GKahn

If I recall correctly, Mike Buck said that the 2020 operations plan would not be adversely affected provided the exploitation licence was granted before the end of the first quarter. More than five months later it is clear that there will be no field operations at all this year. While it is very disappointing that there will be no drilling, Heron could have been brought into production this year given sufficient lead time from licence approval. This would have provided cash flow for a number of months over the winter and put the Company in a much better financial position for the 2021 exploration and development programme and reduce funding requirements accordingly.
GKahn

We have waited a very long time time for exceptional news , but now we have it - Mike is back

When did we last receive a credible operational update?
Have the Edinburgh based investors got this horribly wrong, or do they all know something which has yet to be released to shareholders?

OJAY
Why on earth are you responding to such absurd posts. Perhaps I should apply the filters more broadly to include you
Gkahn

Many thanks Captain.
Interesting and hopefully exciting times ahead, but continuing patience is required

Mongolia’s refinery project will have implications for the country’s relationship with PetroChina and the destination of crude oil produced in PetroChina’s blocks XIX and XXI. This may have implications for Petro Matad.

Today, about 41,000 barrels/day (b/d) of refined products are imported, nearly all of which comes from Russia. Much of this will be displaced when Mongolia’s refinery comes onstream in a few years’ time. The nominal capacity of the refinery is 30,100 b/d and it is under construction in the south-eastern province of Dornogovi.

Crude oil production in Mongolia currently amounts to about 21,000 b/d, essentially all of which is produced in PetroChina’s blocks XIX and XXI and exported to refineries in China by truck. Accordingly, in order to provide adequate feedstock for Mongolia’s refinery, crude production from blocks XIX and XXI, as well as hopefully from PM’s block XX, would surely have to be redirected and not exported.

Under Mongolia’s petroleum law which came into effect in 2014, the government has the right to pre-emptively purchase petroleum products for the refinery which are allocated to a contractor in accordance with a PSC.

Whether PetroChina is interested in a short-term arrangement with PM for exporting block XX oil production to China is questionable. However, a possible option is for PM to arrange trucking directly to China independently of PetroChina.

Given the refinery scenario, PetroChina may be reviewing its relationship with the Mongolian government and its long-term commitment to the country. This could be positive if PetroChina commits to furthering exploration and development to unlock the considerable reserve potential, e.g. a farm-in to block V.

Well said Persistent.

Petrodollar
Many thanks for your comments. I shall revert on the PetroChina/ Mongolia refinery issue probably tomorrow

I agree master82, however there are very few people that are saying that the company will go bust, not even the Captain. I suspect that our new friend may be a short seller. If so, he provides additional liquify and at some point he would have to buy back.

OJAY
Many thanks. I recall you being puzzled as to why I hadn't sold any of my 4 million shares in Feb 2017. Given what transpired subsequently, it doesn't bear thinking about!
As I see it, there are two important issues which are beyond the control or influence of PM, ie PetroChina's aspirations v those of the Mongolian government and feedstock for its refinery; and of course the impact of COVID 19 as it might affect future operations. I plan to pen some thoughts on the PetroChina conundrum.

More and more extraordinary!!

OJAY

While we are endeavouring to remain patient, I thought it might be interesting to reflect on what happened 3 ½ years ago when we saw the share price peak at about 36p in February 2017; and to make comparisons with the situation then to the circumstances prevailing today where the share price has declined about 93% from that peak.

Firstly, it is appreciated that the share price got somewhat ahead of itself in February 2017 with what came to be seen as excess speculation. However, more that two months after that peak the share price was still a healthy 28p or thereabouts. But then came the most disastrous event in PM’s history – the death spiral Bergen deal which virtually assured the destruction of shareholder value by massive dilution, not only because of the substantial number of shares issued to Bergen but also the damaging effect on the pricing of subsequent equity issues. As a consequence, the number of shares in issue has expanded from 287,474,775 in February 2017 to 677,489,306 today, i.e. nearly 2.4 times, and the quality of the share register has deteriorated markedly, a problem that remains unresolved.

As to oil prices: the effect of the current weakness in the international oil price has been rather less than one might think. Brent in late February 2017 was about $56 per barrel versus nearly $45 per barrel today.

So, what else has changed? block IV has been relinquished, but the Raptor prospects in Block V have progressed and Heron is a significant discovery with its potential for early cash flow, subject to a few rather important conditions being satisfied. Accordingly, it may be meaningless to make any comparison until such time as the critical uncertainties are resolved namely: the exploitation licence, an offtake arrangement with PetroChina for Heron production (which is a particular concern) and the border with China remaining open so that operations dependent of Chinese personnel will not be adversely affected. Lastly, PM is financially weak and will need funding, the timing of which will be critical. Hopefully, the company will not entertain an equity issue until such time as the key uncertainties are resolved. I don’t see the exploitation licence as a problem but it is unfortunate that it is holding up progress on the negotiations with PetroChina.

As to a comparison: 28p / 677.5 *287.5 + potential = food for thought?