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From the same source, written a few years later. The production figures from block 19 ( mainly ) grew tremendously after PC bought it from Soco. 14,000 bpd by 2013 ! I really wish the likes of Corpse would research properly before offering a load of half baked opinions....So much for MATD being unlikely to get much income from a farmout if block XX performs in a similar way to block 19.

" Chinese state-owned firms operate Mongolia’s three producing blocks. PetroChina, which acquired US-based Soco’s concession in 2005, holds production-sharing contracts (PSCs) for Blocks 19, 21 and 22 in the northeast, while Sinopec operates the much-smaller Block 97 to the south. Output, driven by Block 19’s Tamsag field, has grown exponentially from 6000 barrels per day (bpd) in 2010 to 14,000 bpd by 2013 and 21,000 bpd by September 2014, according to PAM."

Also this comment " Block 21 was producing around 200 bpd from four wells in September 2011, according to the PA." puts into perspective all the nonsense spouted on here about H1 being a disappointment in some way. Even H2 at a potential 35 bopd is already nearly matching the average per well that PC achieved from block 21.

PC will be desperate for another block 19.

And this is why block XX is so important given that it neighbours block 19. Just look at the difference in the figures between blocks 19 and 21 ;

" Block 19, in the Tamsag basin of far-eastern Mongolia, is currently the main, commercially producing resource, with 85 wells active as of September 2011. Block 19 produces an average of 6000 barrels per day (bpd) between its wells"

vs

"Block 21 was producing around 200 bpd from four wells in September 2011, according to the PA."

From an article written prob in 2012. Makes what Corpse wrote look silly ; " Its been stated millions of times what is supposed to be there, yet country wise, production has fallen each year. What each well is producing is about 30 barrels and just about meets commercial let alone the winters that impact. You need cash now not dreams and a decent H1 compared to the rest."

From the article ;

"Block 19, in the Tamsag basin of far-eastern Mongolia, is currently the main, commercially producing resource, with 85 wells active as of September 2011. Block 19 produces an average of 6000 barrels per day (bpd) between its wells. The block was first explored by London-headquartered SOCO and found exactly what BP had said it would. The crude was light and sweet, but given its waxiness, the company decided to sell their interest to the Chinese National Petroleum Corporation (CNPC, or PetroChina). CNPC bought a 94.4% stake in Blocks 19, 21 and 22, and in November 2006 started selling commercially from Block 19. Block 21 was producing around 200 bpd from four wells in September 2011, according to the PA."

Corpse - look at the production figures for blocks 19 and 21. A year or two after PC bought block 19 the figures soared - and apparently most of the production came from block 19, which Soco sold to PC in 2005, and which is the neighbouring block to ours.

You seemingly have never been aware of the production figures. When I have time I will find the chart which shows these.

Good point about lower costs when the refinery is up and running abzzba - 9 Dollars more per barrel is a hell of an improvement.

Don't forget with the farmout we get diluted by 50 to 60 % depending on the deal. Not sure if an upfront payment would be normal for a farmout agreement - nobody on here seems sure.

It really depends how quickly the other party can roll out the wells - it needs to be done with a real intent behind it. Otherwise I would be happy for them to sell block XX for a minimum of say 200m Dollars. MB said the minimum would be 150m. Again, it depends how quickly a farmout partner could develop the field - it needs a major player.

Corpse; if you used a modicum of common sense for once, you would realise that they are in advanced negotiations with one party ( Indian or Chinese ) for a farmout. That party requested a draft agreement. Two others are currently doing their due diligence.

This is the backdrop to what they are doing. If the migrated oil in Gobi is located, then block XX has a lot more recoverable reserves than had been realised to date - it's already 33 to 58m barrels.

Where is the news item that mentions Jerry Smart arriving in Mongolia ? Is it on X?

Predictive text added " wee " for some reason - I didn't mean that the exploitation licence was miniscule....!

Like I've always said - the real villain was that rogue governor. Otherwise they could have started on Heron as soon as the wee exploitation licence was granted back in July 2021 I think it was. They would have done the same raise straight after the announcement, but the funding would have been spent on Heron, not wildcats.

Master ; dint you understand that due to the company being unfairly denied access to Heron for around three years, they had little option other than to drill wildcats.

Imagine what people would have been saying on here if they had done absolutely nothing for those three years whilst all the time burning cash in order to keep the company running. They would have been slaughtered by some on here.

Master - you realise that the technical expert, Jerry Smart would have been responsible for the decision to drill H2 800m away from H1 ?

He clearly must read what is posted on here, as he made a point in the presentation of justifying the spacing. It was so as not to interfere with H1's output apparently. Like putting two straws into one drink I presume ?

.

Also, it's a particularly weird and volatile price action with this share.

At its highest point during COVID with all the borders shut, no local access permission having been granted for Heron and with the staff all taking pay cuts so that the company could survive the share price was some 600% higher than it is now. Absolutely nothing was happening back then, and all the equipment was confined to China.

Microcaps on AIM are just plain weird in terms of price action.

" demise of this company " when we are on the cusp of a farmout. Laughable.

Did RR go into demise just because its share price crashed from around £4.00 in 2018 or 19 to something like 30p during COVID? Some RR shareholders were about 90% down at that point - now they could be 170% up had they kept their nerve and held.

When you get out of this situation you should never ever go near microcaps ever again for your own good Master. Us LTHs who bought in between 3p to 4p could have exited with a reasonable profit on 29th May last year - we decided to hold, and for now we have to live with that decision.

MB got on with H1 and H2 straight after the local permission was granted in late May last year. We had oil by October.

The company and its shareholders were totally shafted by that governor - three lost years. And now the company is being messed around by more communists with the late and withheld payments.

That governor who held up the company for 3 years would have done the same whoever was in charge - he was being bribed, and a Mongolian communist wax never likely to be sympathetic to a western capitalist company.

In that scenario the company might well have been fully self-supporting by say late 2022, instead of subsequent raises being wasted on just keeping the company going and some wildcats. A farmout would prob have been agreed and sorted ages ago as well.

One of the biggest problems over the years has been the " Mongolian factor " which MB alluded to in the presentation. It's been an exceptionally difficult environment for the company to make progress in.

Without COVID and the rogue provincial governor withholding the local access consent the fact is that the company could have started on Heron back in 2021 straight after the exploration licence was granted in spring that year. So the raise would have then financed H1 and H2 instead of the wildcats which became the only option due to not have legal access to Heron. By now we could have been on around H9 and H10.

Hamm : are you saying that you take no responsibility for banking profits when they were on the table and then using those profits as the only money you would be risking ?