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With an 11m mcap now vs vastly higher assets somebody is almost certain to come in with a buyout offer now.

I just hope there aren't too may new 0.8p holders rather than mainly existing holders who averaged down, as if they go for a hostile takeover the newcomers will be happy to accept a desultory offer which will still give them a multi bag. That was another reason for Petrovis to step in properly and expand its share of the company.

It's high time that Buck starts earning his enormous income. We need an immediate investor Q&A session so that a load of pressing concerns can be addressed. This company needs to start properly communicating fast.

And question no 1 is why didn't Petrovis simply protect the share price and mcap through expanding its share of the company ? It would have saved itself going around $2m underwater with its existing holding if it had done that. If it had bought at 2.3p which the share price was at the end of May then the company could have issued a third of the shares.

Question no 2 - if the above was not possible then why didn't they time a rise to be near the top of the previous 2.3p range such as it was at the end of May ? That way they could have raised at say 1.5p and issued nearly half the number of shares. And it would have supported far better the share price and the mcap.

Abzzba ; " But the refinery would make a great JV partner, always found it strange why the refinery operator has been granted exploitation and exploration rights as stated at below link, never heard of a refinery drilling for oil before."

It would indeed make a great JV partner. Fingers crossed.

Master ; " Wages needs to be less than a 1m."

Isn't the official figure something like 15 staff ? With $2m wages per annum, that works out at $133,000 PA each. The average wage in Mongolia is $436 a month. I'm not sure how many extra site workers may have been needed since production started.

Master ; " Wages needs to be less than a 1m."

Isn't the official figure something like 15 staff ? With $2m wages per annum, that works out at $133,000 PA each. The average wage in Mongolia is $436 a month. I'm not sure how many extra site workers may have been needed since production started.

TenBag ;

"Not strictly true investor33. If if if we even produce 500bopd, we’d be able to “go it alone”. We have the infrastructure to bring more wells on stream."

Possibly - if these tests work out the way we hope - I would definitely love to be proven wrong. I would prefer to see a JV or buyout however.

Master ; as you said, Petrovis should have increased their stake in the company - I would have thought that this was particularly important with buyout talk in the air. They will absolutely not want any kind of a hostile takeover.

They could have put in $4m through paying the 2.3p market price at the end of May, or if need be slightly under - say 2p. That way MATD could have issued up to nearly a third less shares, and Petrovis would have avoided having their share % of the company reduced.

And Petrovis or MB wouldn't have put themselves heavily underwater with their existing holding, even taking into account the relatively small no of 0.8p shares that they will have used to average down a bit.

It would also have supported the share price and the mcap, thereby making it less likely for someone to come in with a desultory offer based on a very low mcap vs the asset value.

And it would have inspired more confidence in the company, on the basis that they are not going to keep on coming back for more money from Joe public. Didn't MB make a comment on those kind of lines recently - " we want to self finance so as to avoid coming back for more from the public in the future " or words to that effect ?

Gadgie ; And 6 weeks ago was when the share price hit its peak so far this year of 2.3p. So in the light of that RNS the right time to raise at around 1.5p.

The results of raising at say 1.5p at the end of May when the market price was 2.3p ;

- Either half the number of shares needing to be issued, or twice the amount raised compared to what actually happened.

- MB being less underwater with his existing shares by at least £100k. Probably more.

- Petrovis being less underwater with their existing shares by at least £2m. Maybe more.

- Making the mcap less vulnerable to a predatory takeover offer.

- If issuing half the no of shares, thereby lessening any prospect of a hostile takeover.

They basically HAVE to do either a JV/farmout or sell block 20. Anything else is fantasy.

The success rate with PC's wells has been about 55 to 60%. MATD don't have anything like the financial muscle to go it alone. It's $2m to drill at a time plus another $2m to finish a well. It's not an option to go it alone.

Master " Why did petrovis just give almost 20% of the company for 4m. "

And why didn't they do it 6 weeks earlier so as to give away only 10% of the company and put themselves around £2m less underwater with their existing holding ? It's totally baffling.

So the Petrovis Group states on its website that it has 7 subsidiaries, of which MATD is one. The others are ; NIC, Petrostar, Petroctruck, PetrovisTrading, Unigas and PetrovisTos. The Petrovis Group has some 2,300 employees, 11 warehouses and 9 laboratories. It supplies and operates 360 filling stations.

Here's what it says about the NIC subsidiary to take one example ;

" Until 2003, NIC Joint-Stock Company acted as an economic unit of state ownership, and in 2004 the State Property Committee twice announced a Bidding for the privatization of NIC JSC. In the second Bidding, 4 national and international companies competed, and the winner was Petrovis, which acquired the NIC company through privatization and managed to become the leading national company in the oil field with the largest network covering the whole country, with its 19 branches for the supply of petroleum products and more than 400 gasoline filling stations, employing more than 2,000 specialists and workers. Prior to privatization, the NIC LLC provided 18% of the national oil products market, while the PETROVIS LLC provided 22% of the market.

Petrovis LLC since the acquisition of NIC LLC has built anew or relocated up to 205 gasoline filling stations and carried out a comprehensive renovation at more than 300 gasoline filling stations. We have also built 6 integrated oil depots, have upgraded a fleet of 334 oil tankers, put into operation a fully automatic oil depot "New Tolgoit", the first in Mongolia, have implemented a set of 3 types of ISO standards, as a result of the investments more than MNT 300 billion.

NIC LLC is currently engaged in the wholesale distribution of petroleum products of Petrovis Group in Ulaanbaatar and other places and continuously supplies high-quality, certified petroleum products to the largest companies in the mining, communications, agricultural and industrial sectors of the country."

So the Petrovis Group states on its website that it has 7 subsidiaries, of which MATD is one. The others are ; NIC, Petrostar, Petroctruck, PetrovisTrading, Unigas and PetrovisTos. The Petrovis GRoup has some 2,300 employees, 11 warehouses and 9 laboratories. It supplies and operates 360 filling stations.

Here's what it says about the NIC subsidiary to take one example ;

" Until 2003, NIC Joint-Stock Company acted as an economic unit of state ownership, and in 2004 the State Property Committee twice announced a Bidding for the privatization of NIC JSC. In the second Bidding, 4 national and international companies competed, and the winner was Petrovis, which acquired the NIC company through privatization and managed to become the leading national company in the oil field with the largest network covering the whole country, with its 19 branches for the supply of petroleum products and more than 400 gasoline filling stations, employing more than 2,000 specialists and workers. Prior to privatization, the NIC LLC provided 18% of the national oil products market, while the PETROVIS LLC provided 22% of the market.

Petrovis LLC since the acquisition of NIC LLC has built anew or relocated up to 205 gasoline filling stations and carried out a comprehensive renovation at more than 300 gasoline filling stations. We have also built 6 integrated oil depots, have upgraded a fleet of 334 oil tankers, put into operation a fully automatic oil depot "New Tolgoit", the first in Mongolia, have implemented a set of 3 types of ISO standards, as a result of the investments more than MNT 300 billion.

NIC LLC is currently engaged in the wholesale distribution of petroleum products of Petrovis Group in Ulaanbaatar and other places and continuously supplies high-quality, certified petroleum products to the largest companies in the mining, communications, agricultural and industrial sectors of the country.

Not yet Margaritas. I think my first priority is to write to MB.

I'll just correct what I said about the parent company vs its subsidiary ;

" A parent company and its subsidiary are not the same business, although they are closely related. A parent company owns a controlling interest in a subsidiary, typically through owning at least 51% of its shares. While the parent company exercises control, the subsidiary remains a separate legal entity with its own structure, finances, and legal obligations. "

You will never hear the bashers mention it, but Petrovis is the parent company and MATD is its subsidiary. It says so on the Petrovis website. They are to all intents and purposes the same business. Those who pour scorn on MATD probably have no idea that they are also trashing the reputation of Petrovis - and Petrovis are a highly successful business in Mongolia.

Checking some figures, I still need to go on about the timing of the raise, as I've estimated that MB probably put himself more underwater with his 15.3m pre raise MATD holding by around £110,00 and Petrovis by nearly £2m. More if their averages were higher than 2.5p. This is compared to if they had raised 6 weeks earlier at the top of a well established price range, rather than raising at the bottom of the range. It baffles me, so I presume that something happened re the PC payments which forced emergency measures ? Still, we need to know.

Abzzba ; he could put it across tactfully, but in a way that allows us to read between the lines....

Abzzba ; you may be absolutely right about this. It's highly feasible. I would just like to have it confirmed however as a courtesy to the LTHs. If a sudden raise was forced upon them then it's only fair to let their loyal shareholders know about what happened.

That's why I think an investor presentation is essential asap.

MB may not be a trader, but being aware of price movements and patterns of price movements for the company which he is the CEO of is bread and butter stuff I would have thought. Especially when you have the responsibility for calling and timing a raise.

Mike gets paid big money for making big calls. Due diligence is fundamental to this.

TenBag ; ah yes, I think he said that he put 20K or 25K from his ISA into MATD, but then had second thoughts and sold them to buy into another share. His other existing MATD shares were in his SIPP or something which he retained. Someone else made a comment at the times about " eggs and Baskets " from what I remember.

So MB has just over 15m shares at 2p or higher. He created a huge paper loss for himself and Petrovis through raising at the low of the year.

I'm really scratching my head...