Member Info for GKahn

Ojay
The Mongolian government clearly wants rapid development of its oil potential, particularly as feedstock will be needed for the new refinery. Also, the government would prefer to be less dependent on PetroChina for further development. Petrovis’ business is distribution of refined product and are known to be keenly interested in the refinery.
Food for thought?
GKhan

Correction: market cap

Once PM has got the Block XX exploitation licence and extension to the Block V exploration licence, the company will be worth significantly more than its current market gap. What would PM’s assets be worth to a well-funded oil company that is looking to enter Mongolia, and is PM becoming vulnerable to an opportunistic take-over bid?

There has been far too much misplaced negative talk about a placing. The doomsters apparently fail to appreciate that, if there were a small placing to fill a funding gap until Heron becomes cash generative, PM will surely not procced with a funding until the Block XX exploitation licence is granted; and this should happen in Q1 next year or just possibly by Xmas. Once PM has the exploitation licence it is reasonable to assume that the share price will strengthen, probably significantly, so that a modest placing at a price higher than today’s depressed sp should be considered a positive.

There is a scenario where the company might proceed with a more substantial placing in order to drill the Block V prospects in 2020 where the potential is more than 500 million barrels with reasonable COS. Given the Block V prospects, which aggregate about 20 times the reserve size of Heron, the share price should respond accordingly.

GKhan

A well-funded oil company could unlock the value of PM’s assets in a relative short time frame. The value to a new entrant to Mongolia with a starting position of 100% ownership of three substantial and highly prospective 100% owned blocks is worth many multiples of PM’s current market capitalisation.
The Mongolian government would likely welcome a serious new entrant to further the exploitation of the country’s oil ands gas potential, particularly as feedstock is needed for its refinery.

Indeed Sands. However, I doubt any serious institution will invest until the company is able to demonstrate that it is cash generative.
While the share price remains so depressed PM must be vulnerable to an opportunistic take-over. The only possible deterrent to a bidder is Petrovis but it now has less than 25% of PM's equity and it hasn't shown keenest to participate in recent fundraising.

I agree 100% Oilflated. This board reflects the shareholder register which is dominated by short term traders, some of whom inhabit this board and are clearly manipulators.
The quality of PM's share register is very low class and this can be attributed to the Bergen deal and subsequent placings which has resulted in the number of issued shares more than doubling without the addition of any reputable institution with a disclosable shareholding.

ToblerRone
Are you familiar with unitisation? If so, perhaps you would like to educate this board as to the impact on Heron economics going forward?
GKhan

are operating on this board

It is standard practice that at each AGM the annual authority for the board to be able to issue shares and disapply pre-emption rights is renewed and certainly is not an indication that a placing is imminent.
GKhan

400,000 shares

I have just topped up with 190,000 to add to my long term investment. I have been a shareholder since listing.

Manro - You are correct that brainless people and those that are not committed to PM long term are selling. However, these sellers are being replaced by other brainless people or short term traders. The company needs core committed institutional support.

The problem is that more than 70% of PM's issued shares are in loose hands, a legacy of Bergen and subsequent low quality placings and the massive dilution that resulted. There are no institutions or core investors (other than Petrovis) with a disclosable interest. In the circumstances the share price is most unlikely to reflect anything like the underlying value of the company.

PM is a paradise for unscrupulous manipulators, a legacy of Bergen

I am surprised that the company hasn't proposed a share consolidation at the upcoming AGM?

Mike31 has taken the day off!

Nominal share value is 1 US cent. Therefore the authority to issue nominal amount of US$2,207,321.02 is an authourity to issue 220.7 million issues. At say 5p per share maximum use of the authourity would raise about £11 million (US$14 million)

As the nominal value of each share is US$0.01, the company will have authority to issue 220 million shares post AGM.

Mister P
As you are clearly interested in the prospects for a PetroChina farm-in, do you know how the cost recovery will apply? This could be significant as Petro Matad’s historic exploration expenditures in block XX are very considerable?
G Khan