Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Moving forward
Petro Matad, the Mongolia-focused E&P company, has announced that its
application for land access for 2024 operations has been approved by the
Matad District Committee. This means that a land use agreement can be
prepared, which, once signed, will allow operations to proceed, including
the completion of the Heron-1 discovery well as an oil production well. This
will allow Petro Matad to start generating cash flow that can be used to
grow the business and add shareholder value. Although this is a step
forward, the company still faces a delay to the State Special Purpose
Certification process.
▪ Land access has been an issue. Petro Matad’s proposed development of
its Heron oil discovery, in Block XX, has been stymied by the issue of land
access to its proposed development. While awaiting confirmation of its
Exploitation Area’s designation as State Special Purpose Land,
management has been in negotiations with the local authorities. At a
meeting of the Matad Citizens’ Representatives Committee at the end of
February, Petro Matad’s application for land use in 2024 was approved,
meaning an agreement can now be prepared and signed by the District
authorities and the company. This will allow Petro Matad to start moving
ahead with the development of the Heron Oil field once the winter hiatus
is over and oil service contractors remobilise their crews. The company is
in discussions with PetroChina over transport, processing, storage, export
and sale of early Heron production. The first course of action will be to
recomplete the Heron-1 discovery well as an oil producer, which will allow
the company to start generating significant cash flow that can be used to
accelerate the ramp-up of production at the field.
▪ State Special Purpose Certification required. Although an agreement has
been reached with the local authorities and Petro Matad is hopeful that
its planned operational activities can commence, in the longer term the
company still requires State Special Purpose Certification of the
Exploitation Area, which entails a number of regulatory steps. The
problem here is that the Governor of Dornod Province is withholding his
signature on the basis that there is an overlap of the Block XX Exploitation
Area with a provincial Protected Area, which he believes breaches the
principle of no overlaps in areas for specific land use. Petro Matad notes
that its PSC (production sharing contract) for Block XX was signed in 2006
while the Protected Area was not declared by the province until 2014,
implying that the province should be seen as in breach of the no overlap
principle. Although this is an issue for some of the licence, the areas where
Petro Matad wants to work in 2024 are not in within this overlapped area,
and management hopes that this dispute will not affect the proposed
works at Heron.
▪ Valuation. Our RENAV (Risked Exploration Net Asset Value) stands
I hope asa we get LP secured some institutions increase their holdings by a couple of hundred millions so the share price gets to a far higher rate. Would be nice to be double digit.
One way or another market hasn't been convinced yet. Till then traders are the winners and LTHs are suffering.
If we, no longer need LP to start Heron then we should expect operational start/commencing update this week.
Too much noise from activists today/recently mentioning MATD specificly means we should get the final good news soon.
Bear in mind activists aren't the ones who run the country. The so called activists are there to make money themselves, that is their job, just to be against regardless. I can assure you if tomorrow MG decided to be against oil, activists would be pro oil, just to be against anything anyway. The so called activists were running big cars themselves and recently asking for help to get free petrol!