RE: MATD - CNPC - Petro China Partnership/Takeover!16 Apr 2025 14:26
Now on a PC, I will post that last one again ;
For the record, my list of preferred options in order of preference!
1) MATD sells the field at a decent price.
2) A JV agreement is entered into with a suitable partner, with the JV partner paying an upfront fee.
3) Petrovis increase their % ownership of the company through a shared issuance at or very close to the current open market price. This way the extra issued shares will not add to any supply in the near future so as to act as a handbrake on the share price, or contribute to any future price spikes. This extra funding would then act as an enabler for the development of further Heron wells. Institutions on the other hand will only buy in on a raise, and will demand a huge discount on the current share price in order to do so.
All of these options solve the issue of having to develop Heron with a cost per well of $4m. People who bang on about MATD not having the funds to develop further without significant share price dilution impacting very adversely on the share price have just never bothered to consider all the available options.
And as I've stated before on here, it's very important to also consider how many individuals and entities actually hold MATD shares - in reality it can't be very many at all.
If a large % of the shares are in very sticky hands, as most holders are thinking of an investment lasting several years, then that removes a large slice of possible future supply from the market. I doubt if there are much more than one thousand private owners of shares holding the remaining shares which Petrovis and the market makers don't own - that's a miniscule number compared to average mid and large caps.