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WSBN down nearly 30% today...

There's one thing - a strengthening USD is causing gold stocks to fall. Mining companies tend to fall sharper than the actual gold price.

So if there is positive farm out news, some may jump off that bandwagon into oil instead.

Hamm ; do you ever feel any guilt about how some may have jumped in based on you predicting that the share price would be 40p when production started ? I think you said this in early 2024. And then you had Master posting on here at about the same time that the share price would be " 15p on the 3rd well. "

Nobody seemed to wonder at the time about how it would all be financed, or that Block 19 averages 70 bpd from a well, compared to 1,000 to 2,000 bpd in Saudi Arabia ; " Many wells in major fields like Ghawar, Safaniya, and 'Ain Dar are high-performing, with some legacy wells still averaging 2,800 bpd 73 years after operation began. "

Wos gets a lot of flak on here, however he wasn't the only one talking nonsense at the time.

Hamm ; do you ever feel any guilt about how some may have jumped in based on you predicting that the share price would be 40p when production started ? I think you said this in early 2024. And then you had Master posting on here at about the same time that the share price would be " 15p n the 3rd well. "

Nobody seemed to wonder at the time abou7t how it would all be financed, or that Block 19 averages 70 bpd from a well, compared to 1,000 to 2,000 bpd in Saudi Arabia ; " Many wells in major fields like Ghawar, Safaniya, and 'Ain Dar are high-performing, with some legacy wells still averaging 2,800 bpd 73 years after operation began. "

Wos gets a lot of flak on here, however he wasn't the only one talking nonsense at the time.

Furry ; apparently MB has about 20m shares. If the share price appreciates significantly then he's clearly going to be set up for life. That recent advisory appointment is quite normal for CEOs, and not a signal that he is looking for a way out.

Dusty ; I know full well that so far the company's activities have been financed via capital raises. It's the lesser of two evils however.

As there is no debt on the balance sheet apart from any corporation tax owed to the authorities within the financial year, there are no creditors who might potentially petition to put the company into liquidation, and no interest to pay on debt. I think dilution therefore has been the better option - don't you ? Why should you care anyway if you've never bought any shares ?

Dusty ; I have read it again, and you wrote ;

" The people usually shouting "No Debt" tend to not understand a Early Exploration miner where ill say this is how this will have begun. "

So the people shouting " no debt " have clearly understood that a capital arise is not debt, as shareholders own a slice of the company, and are not creditors. so what don't they understand exactly ?

And any "creditors owed within one year " showing on a balance sheet will almost certainly relate to any corporation tax due to the relevant tax authority within the company's current tax year.

Proquo ; re the banks. It's exactly that - as creditors anybody with a current account should be getting interest on what they have in it.

Well said Proquo re the farm out.

I believe it will happen, and that it is imminent.

Proquo - just an interesting point. Any money that you have in your current or savings accounts with a bank technically makes you a creditor of that bank.

Hence if there is a run on a bank or building society ( like Northern Rock for example ) then the creditors all suddenly want their money back......

Dusty ; capital raises are not a form of debt. Where do they show on a balance sheet then ?

Shareholders own a slice of a company - they are not creditors of the company.

Maybe given you are an engineer, go on a basic accountancy course ?

Proquo -Lol.

And for a company, any corporation tax owed means that HMRC appears as a creditor on the balance sheet. That's why the balance sheet distinguishes between debt owed within one year, and debt owed longer than one year.

Corpse ; a company making profit always has at least one creditor in its balance sheet, as the tax due shows as debt owed within a year ie corporation tax etc.

I suspect that the government would step in rather than watch us add a well or two every year for the next few years. It just wouldn't work for them and the requirements of the refinery.

Whether that would involve them promoting the sale of the field to a major I don't know. They wouldn't be happy however - that's for sure.

For me one of the biggest benefits of a farm out is that a large operator should be able to operate its own crews and rigs, bringing the cost per drill and per completed well down massively.

People say that its cheap to drill in Mongolia, however the amount of oil that is extracted per well is much lower than in other parts of the world. So you need to do what they did in Block 19 and drill a hell of a lot of wells to really make it work. That requires decent financial grunt and the ability to drill and complete a well cheaply - which is what an oil major can do.

Plus of course the government will pretty much require a fast roll out to happen - not for us to dawdle along at our own pace as and when finances permit.

Proquo ; I don't like the idea of going it alone, simply because the hit rate in Block 19 is about 60%. And we pay DQE far more than an oil major would pay per drill and per well completion.

H2 has been problematic, and one of the risks identified in the Progressive report was " the complex geology of Block 20."

If say two more drills were guaranteed winners then it would be very different of course. Or if a drill cost say 500k rather than 1.5m then the odds would also be more in our favour. I just don't like the odds of going it alone - if was Saudi Arabia with an average well producing 6,000 bpd, then just one operational well would have made the company totally self financing, however unfortunately the average in Block 19 is just 70 bpd.

If on the other hand we got a farm out with block 20, then maybe eventually we might be able to go it alone in Block 7 if that becomes necessary.

Hamm ; to give you an idea, today so far we have had about £1k's worth of shares changing hands. BP has so far had about £33m's worth of shares changing hands.

And you wonder why BP's share price has gone up recently and ours hasn't....Maybe start with the basics.

Hamm ; " Why hasn’t MATD’s share price moved with the rise in oil prices? "

It's lack of volume which is the issue - not exactly uncommon with many Aim stocks. Volume is the fuel which drives share prices. We don't have anything like enough volume ( or shares changing hands if you like) at the moment. That's why we need farm out news. Aim has had a general outflow of capital in recent years, so volume can be an issue. If you want decent volume, then generally speaking you need to look at the main market.

If there is little volume then the MMs automatically move the share price down to try and create some demand volume. It's not hard to work out.

Those spikes we used to get during the exploration phase were caused by sudden spikes in volume following some kind of RNS news, even if the news was basically nothing of any consequence. Once the volume rapidly dropped off sharply a day or two later, the share price fell back - hence the spikes, which I actually had to point out to you at one stage. I think you even made a sarcastic remark at one point about me often referring to the price " spikes. " Such is the naivety of some who get involved with this index...

Btw, I like the way that the Vietnam war dodger criticises tanker operators and crews for not " showing more guts. " I'm sure that if they tried to sail through the straits they would be showing plenty of guts spread all over the place....

Ok, good one Shadow.👍

Shadow ; the MG are desperate for oil for the new refinery. Where do you propose that the oil will come from if they drag their heels over a farm out ?

And bear in mind that they overrode planning laws for surface infrastructure so as to allow MATD to start producing quickly in late 2024. Any idea why ?