Member Info for GKahn

The 1 share UT trade yesterday was an "uncrossed trade", a market maker adjustment. Thus it is safe to assume that the trade was not attributable to a long suffering desperate LTH

Obelix
I agree entirely. Anyone holding a short position when the exploitation licence approval is announced could get very badly burnt.
By the way, I replied to your query of Tuesday on Wednesday at 8.05.
GKhan

Obelisk
One has to wonder who is selling at this price and what price they paid for their shares. It seems that many must be selling at a loss – incomprehensible madness surely?
GKhan

Obelix, good morning
I think that the two execs subscribed in order to demonstrate their confidence in the company’s prospects for continued success in 2020, particularly in getting the approval of the exploitation licence for block XX.
Awards to employees amounted to 7,917,000 shares and it will be interesting to see whether these employees and the non-executive directors do likewise.
GKhan

Interesting that both executive directors subscribed at 1p but none on the non-execs have so far.
GKhan

Oilflated
I do agree that a takeover battle for Petro Matad would certainly result in a major premium to today’s PM share price. The problem is that the starting point, i.e. today’s SP is very depressed, and the company does not have a quality shareholder base aside from Petrovis which holds about 25% - down from more than 50% as a result of dilution. Surely, the government would like to see a stronger player unlock the oil potential, particularly as it wants feedstock for the new refinery; moreover, Petrovis is interested in the refinery offtake. Food for thought?
GKhan

A Canadian diamond in the Rough
https://www.nytimes.com/1995/11/24/business/a-canadian-diamond-in-the-rough.html

Ojay

I have read the interchange with Spainish. Evidently, he has worked with or for substantial companies, but there is no indication that he has any board of advisory experience with publicly listed companies and fundraising particularly for small companies such as are AIM listed.

Oyu Tolgoi is an interesting story and Robert Friedland is a very successful promoter in the resources sector. However, Friedland arrived in Mongolia with a substantial amount of cash in the order of US$750 million to pursue opportunities. Petro Matad on the other hand has been essentially short of funds for the last nine years and currently has only about $3 million. Some difference!

Spainish made a valid point that to successfully develop the massive oil potential in Mongolia, it will take a well-funded company with management depth of expertise and experience.

However I have a concern: when the exploitation licence for Heron has been approved, I believe that Petro Matad will be particularly vulnerable to an opportunistic take-over; and current shareholders may thus miss out on the substantial upside in the potential future valuation.

GKhan

Thanks Neeko. I am sure you agree with me that approval of the exploitation licence will be the long-awaited game changer for PM
GKhan

IMHO, there can be no funding, farm-out, jv or takeover while the block XX exploitation licence is awaited. MB has said that the year end cash balance will be about $3 million and surely this is more than sufficient for many months of overhead expense? Also, MB has stated that, provided the block XX exploitation licence is granted by the end of q1 next year, the company’s exploration plans should not be adversely impacted; and, in any event, he intends to keep any equity raising, if necessary, to a minimum. In these circumstances, an imminent placing at depressed prices before grant of the exploitation licence is surely highly unlikely.
GKhan

have a chemically hazardous waste pool everywhere, and have drunk their drinking water from the provincial center, and have a feast in Canada and China, where they have the next field ???

Can we get clarity from those that think that an early placing is coming as to their views of the timing -ie before or after definitive news of the Block XX exploitation licence which, if approved, should be a game changer?
GKhan

Well said Ojay and JAdam. Frankly, the more we can get those loose-holders, disbelievers and de-ramp traders to find the exit, the better. If the short-term share price suffers as a consequence that is fine with me – frankly good riddance. The company suffers from an extraordinary weak share register which Mike Buck inherited. You have to look back to the Bergen death spiral financing and subsequent placings with “so-called institutions” to understand the problem. As a result, there have been no new disclosable shareholdings and Petrovis’s holding is now less than half as a percentage of what it was pre Bergen. The share register is predominated by short term traders, many of whom regularly post on this board to promote their self-serving interests.

What on earth has got into Manro? He is spouting utter rubbish

So you both believe that PM will exhaust $3 million in expenses before the exploitation licence is granted, essentially just overhead over the winter months?

Duster
It makes absolutely no sense to initiate a placing before grant of the block XX exploitation licence. Surely, you are smart enough to understand this? The fact that you are saying that the placing should be undertaken asap at 3.5p clearly indicates that you are not that smart.
G Khan

Duster
I repeat my question
Are you saying that you expect a placing before grant of the exploitation licence? YES or NO?
GKhan

Duster
Are you saying that you expect a placing before grant of the exploitation licence? YES or NO?
GKhan

Mr P
EBRD sold out a number of years ago

Ojay
I have been invested in PM for more than 11 years and I continue to believe in the potential of Mongolia as an onshore oil province. If only the first management had drilled in proximity to PetroChina’s Block XIX instead of applying the proceeds of a significant fundraising to drilling ten wells before conducting testing - It doesn’t bear thinking about! Anyway, the potential is still there, but I am concerned that we may not realise the huge potential a few years hence, if there is a take-over bid for PM which would be far more attractive to a substantial industry player than farm-in.
GKhan