Member Info for GKahn

Absolutely correct, Persistent . The company clearly cannot say anything for the time being. Our interests are best severed by understating their predicament and remaining patient, no matter how difficult and frustrating

OJAY
I much appreciate your frustration and the good points you make. However, the fact is there is absolutely nothing they can say while they are not in control, or indeed can influence, the keys to furthering the future of MATD.
GKahn

OJAY
You have to feel for Mike Buck and his team as there is very little than they can either say or do at this point until the Heron exploitation licence is approved. Aside from providing additional information to support the application, they have been twiddling their thumbs since March. They must be even more frustrated than us patient shareholders. If you recall, late last year Mike Buck stated that the 2020 programme would not be affected provided the exploitation licence were granted by the end of March; the implication being that all planning and analyses would have been completed by then. Here we are more than four months later, and he cannot progress with negotiating with PetroChina for the Heron offtake arrangements and related capital expenditures until the exploitation licence is granted. The other uncertainty is whether the border with China will remain closed and inhibit exploration and development activity later this year and, more worryingly, next year. The one thing that perhaps could be considered in these difficult and trying times is some core drilling at the Raptor structures which might provide valuable information at relatively low cost?
I continue to believe that it will all come good for investors eventually.
GKahn

Everyone posting absolute garbage, pathetic

A placing at say 2p before approval of the exploitation licence would certainly not help our cause. If the PM board were stupid enough to proceed with a premature placing, I would dump my shareholding. Actually, I don’t think that there is much risk of this scenario as I doubt that it would be possible to get a funding away before licence approval and given other significant uncertainties.

I don't do jokes Petertee

Has Petertee join Captain Stanley's crew?

OJAY
Certainly goes for me. I have been a shareholder from first day on AIM, more than 12 years ago. I have a significant holding and have come to terms with the patience needed to be a PM shareholder.

A placing before the exploitation licence is granted is unlikely. It would very difficult to persuade investors to subscribe given the uncertainties.

OJAY: For me, the biggest risk is whether the border with China will be closed next year as this could limit operations by Chinese contractor and crews. Once the exploitation licence is granted PM will have to negotiate a deal with PetroChina for marketing Heron crude oil as well as modify Heron wellhead to be a producer and construct a pipeline connection to PetroChina’s gathering system. The exploitation licence needs to be granted soon for all this to be implemented in time for Heron to be producing in first half next year.

CS
Please verify that your reliable informant does exist by providing his / her identity

Severity: Critical Alert May 26, 2020
Entry/Exit: Mongolia extends restrictions, border closures through at least June 30 due to COVID-19. Domestic measures eased in Ulaanbaatar.
This alert began 27 May 2020 02:40 GMT and is scheduled to expire 30 Jun 2020 23:59 GMT.
Incident: Restrictions
Location(s): Nationwide
Time Frame: Indefinite
Impact: International travel restrictions, transport and business disruptions; possible movement controls

Whether or not the land border is remains closed, Chinese drilling crews would require VISAs to enter and work.

In addition to the likelihood that the border remains closed, there are a number of outstanding matters to be resolved before Heron can become cash generative:

1 land use which apparently from the Jaran article continues to be a problem, notwithstanding the assurances given in August last year: “all processes for obtaining the land permits for the Heron and Gazelle well sites have been completed and issuance of the permits is waiting on final signature by the local governor.” Has he signed?

2 issue of block XX exploitation licence.

3 agreement with PetroChina for the delivery and marketing of Heron crude into its gathering system.

4 conversion of the Heron well to a producer and installation of the pipeline connecting to PetroChina’s gathering system.

5 a deal or funding to meet the capital cost of the capital expenditures for Heron.

We can only hope that all of the above can be achieved in the coming months so that operations can resume next Spring, and, most importantly, that Covid 19 will not be an inhibiting factor next year.

The most positive result recently for PM was the extension of the exploration licences for blocks XX and V.

Many thanks Donkee
My concern is the land border and whether the Chinese drilling contractor will be able to operate in Mongolia if the crew are Chinese and require visas.

Did the border with China reopen

understood, cheers

Manro must be reading another RNS??

The extension of the exploration licences and the recent update on the status of the block XX exploitation licence application process indicate that PM is confident that the licence will be granted – apparently, it is just a question of when. If this is the case, why has the company not proceeded with converting the Heron-1 wellhead to a producer and the pipeline connections to the PetroChina Block X1X gathering systems so that iHeron-1 can produce? This would enable production and cash flow to commence immediately after the exploitation licence is issued. So, what is the hold-up? I doubt it is lack of adequate funds and, while I don’t know the likely capital expenditure, this should not be an insurmountable problem. The most likely issue preventing PM from proceeding is land-use approval by the local MATAD authority. PM has signalled that this is no longer an issue on the basis that the Mongolian Government has assured PM that the matter has been resolved. However, based on the recent Jaran article, it is still not resolved. It is time we had the truth about the ongoing land-use issue and why the company cannot proceed with expenditure to enable Heron-1 production?

Jimi
I think you are probably spot on - the matter should be clarified in an RNS. As regards an operations update for Block XX, I don't believe that there is much that the company can say at this point. They have probably completed their analyses and planning, but they can't progress arrangements for off-take of Heron production with PetroChina, and farming or JV for Block XX until the exploitation licence is granted.

I think the management must be very frustrated at this point, and probably “twiddling their thumbs” as I doubt there is much more analysis or planning that they can do at this point.