Member Info for investor33

I have a principle whereby I refuse to discuss the company with anybody who is not invested.

Others are here purely for schadenfreude reasons to do with their own particular mental issues.

There's 3D seismic data which has been done for the northern portion of block 20, courtesy of PC.

There was none done by Soco when they sold block 19 to PC in 2005 for the equivalent of 145m Dollars in today's money....

I understand that there's no legal requirement of the time difference between the forward sakes agreement being signed and the issuance date - it could be 6 months for example. Or 6 weeks.

It would be interesting to know when the company went into a forward sale agreement with an investment bank or whatever institution it was. WE know that the issuance was set for today.

My guess is that happened sometime in late May, and the wave of selling which halved the share price in June and up to when the raise was announced was down to the institution(s) flipping their shares at various market prices above the agreed 0.8p.

Greyw : just p***s off you schadenfreude idiot.

Mmafr : that conclusion you reached at the end is still true, as those who wanted to flip the shares prior to taking ownership will have done so already. And those who took up the retail offer will definitely be holding for higher prices.

Mmafr ; I would imagine that most of the institutional shares were forward sold. So very likely many were flipped before they took ownership of them when the new shares were issued today. A bit like how you can flip a futures contract without taking delivery of the asset. That may account for the drop in the share price from 2.3p in late May to 1.1p just before the raise was announced. Those institutions who wanted to sell up before taking ownership would have had to do so before the price fell to the 0.8p agreed price. They would have pocketed the difference between what they sold them for at the market price at the time and the agreed 0.8p forward sale price.

Those who may have held on to them wil now have to wait for higher prices. Including those who took up the retail offer.

I'm sure that is obvious to those with half a brain, however just in case it isn't to some, the value of Heron would be based on the recoverable reserves, and the price per barrel put on those reserves.

The mcap at any given time would have nothing to do with. It, as it would not be the company as an entity and its shares which would be being sold - it would be one of the company's assets.

Thanks for your thoughts abzzba and corpse - interesting.

Hopefully we can gradually increase the production with H1 now that the beam is in use.

Hamm - in fairness to MB, he and Petrovis bought in at the 0.8p issue price, and very likely the incentivisation of forward selling is the only way that a company with barely any income can do a raise. That's the only way that institutions will agree to buy large nos of shares for such a company.

Abzzba ; why is there no talk about the sand screens these days ? That's puzzled me.

They were dumped most likely in that fall from 2.3p in late May down to 1.1p just before the raise was announced.

The idea with forward selling is to take advantage of the market share price before it corrects to the issue price. They have the time between the forward sale being agreed at X price at a later issue date of such and such to do this. They will have been selling all the way down from around 2p to 1.1p...

Abzzba : re adding value to block XX - that's true what you said.

A successful test with Gobi will mean that block XX is automatically worth a lot more - so I can see the logic in this.

* or whenever

Hamm - with the forward selling, the date of issue and the price of the shares would have been agreed between MATD and the institutional buyer.

So let's say the market price was 2p when this was agreed back in late May it whenever, and the agreed purchase price was 0.8p then the purchaser would have been free to sell the shares immediately on the open market. That's why a raise based on forward selling is a way of guaranteeing that the required funds will be raised. The institutional buyer is guaranteed to pocket a large profit.

Start again.

Hamm - with forward selling, the purchaser can sell the shares before they are issued. So effectively before they technically formally take ownership of the shares. So I would guess a bit like a futures contract.

Hamm - with forward s

I would like to think that the well tests are a means of doing something (hopefully) productive whilst the JV or buyout talks progress, and that these are just a backdrop to the main picture - which are these ongoing negotiations.

Presumably the forward selling is used because that's the only way to guarantee a successful raise - being able to sell the shares before you own them guarantees the purchasers a profit. I guess it's a bit like a futures contract - you can flip the shares without actually "taking delivery "of them.

In fairness, these days you wouldn't need to be present in the MATD office in Mongolia when you can be remotely working and on a zoom call all day long with the Mongolian office if need be from Singapore. We really don't know what hours MB puts in. There's also the technical guy - Jerry, who sounds British, and we don't know where he is based.