Member Info for ManxKippers

If only we could diminish some of those repetitive noise making posters in line with the stated reduction of oil produced from the 800 bpd to the current 150 bpd, we would all be so much more productive in our findings rather than having to put up with the continual and draining noise posted by some...!

It still feels a good and solid bet to me.

Mcap £14 million.

Heron value circa 15 times this as a multiple.

Lots more happening.

SP undervalued by circa 20 to 30 fold - only achievable once extraction and projects are solidly being commercialised.

A big rerate once the Farmout is sorted, signed and announced and once one or two or even three of the H2, Gobi and Gazelle results are also finalised in a positive way - with luck.

As suspected and posted a few days ago, this clarifies the need to prove H2, Gobi and Gazelle as this will play a part in the risk assessment and potential size of the project with payback and earnings.

It is strengthening MATD's current hand for the farmout by adding more certainty for the farmee and a better deal for MATD as the farmor!

Simply, Jazbo, because they will exchange their cash draw of salary from the company for a lucrative and more profitable share scheme and be rewarded for a much higher income than salary.

A reward against results based package. MB did mention this too and it included him!

Also,.......

"Ground Floor" Promote:

In a simple farmout, the Farmee might pay for all costs associated with a 50% interest, and in return, receive a 50% interest in the asset.

Promotes Beyond Ground Floor:

In some cases, the Farmee might receive less than a 50% interest despite covering a larger portion of the costs. For example, a "2 for 1" promote means the Farmee pays for 100% of the costs but only receives 50% of the interest.

Market Conditions:

During times when exploration is less favored, the Farmee might negotiate for more favorable terms, like acquiring a larger interest while covering a smaller percentage of costs.

Risk and Prospectivity:

Highly prospective assets or those with lower risk profiles might command a smaller farmout % for the Farmee, as the Farmor has less need to incentivize participation.

Reimbursement for Past Costs:

Farmout agreements often include provisions for the Farmee to reimburse the Farmor for a portion of the past costs incurred on the asset.

Consideration:

Farmout agreements are not solely cash-based. The consideration is often a combination of cash payments and the fulfillment of work program obligations.

Incase anyone is interested - this plucked from google:

A farmout % in the oil and gas industry can vary significantly, but a common arrangement is a 50% interest transfer to the Farmee in exchange for covering the Farmor's share of future costs, often including reimbursement for past costs incurred. This is sometimes referred to as a \"ground floor\" promote. However, the specific percentage and terms depend heavily on factors like the perceived prospectivity of the asset, the risk profile of the Farmee, and prevailing market conditions.

Dodle....!

Fully agree. Hopefully they will get the 30% paid up quickly woth the tax position sorted and the automated payment running by the 10th of the month following. Then it should be a dodge!

My business is based in foreign countries. Often the work is in setting it up and getting it to run smoothly - ironing out the wrinkles. I think this is exactly that. Give it a short time and these teething problems will be way past us.

OK - BadP. I get your position.

But do you know what they are and how they work?

Thanks

Can anyone expand on how these normally function and what the split or costs are normally for this?

Is this effectively a funding and MATD operate the drilling and development and sales and revenue controls?

Or does the Farmee take total control and just pay the share of the revenue to MATD?

What is the usual split of income expected by this? Is it right to presume the split is after payment of costs and royalties etc??

Anyone???

ADW - Slight misinformation.

They have received the income from last October leas the 30% retained due to the lack of clarity and understanding by the Chinese at PC about the status of the sale of the crude being exempt from duty or tax.

However, due to the payment delays due to the PC new payment system, MATD have not been paid for oil supplied in April or May, as I understand it.

I still think MATD should apply for their own export licence and take control of these crude sales....

Should another partner than PC be signef up for farming out operations, our own export licence could and would be quite useful for all parties.

I am not sure it is PC!

I read that Chinese company interest from operators in Northern China were in discussions. That would suggest perhaps NOT PC and possibly other operators from China wanting to enter Mongolia and get a piece of the action.

We will see...

Interesting pointers for me are:

1. Farmout and not sale of XX AND VII. Seeking to retain control and ongoing revenues for the company and shareholders. Good! (All Chinese focus, probably as it has to be!)

2. Sunsteppe bubbling along nicely.

3. PC stand and working partner credentials looking a little suspect and on watch for long term suitability or not.

4. New wells or not. We will see within the next 10 weeks. Encouraging belief in and preparation for quick connection of H2 to become a viable well.

5. I am not content with the tax explanations given and sense this shouldn't even be a debate. What is going on here??

SP gentle rise but no rockets yet!

Operational Update RNS likely due in 15 mins ir so.

Ready or not, you can't hide....

Time for MB to bare all and show us what he's got.

Surprise surprise....

Is it something big....

We will find out soon enough, folks!

Good luck to you all.

Who has blown what up and where?

Has anyone else clocked Crude Oil now up and rising - sitting at €69.50 per barrel - up almost 5% today, rising strongly in the last 3 hours.

Anyone know why?

Tough questions being asked tomorrow, BP...!

MB's answers will give us a steer on whether there is anything imminent or not and that will be enlightening for sure!!!

To me....

Tomorrow will only be an update with hopes - nothing concrete. As stated by some, anything solid would need to be in an RNS before. We haven't seen that. Therefore there won't be anything tangible or solid without an RNS before the Q&A presentation.

I think that they are revisiting H2, Gobi and Gazelle to add value to block XX to enable them to negotiate a better JV or possibly a sale. I for one am after income and value, not just selling off Block XX.

We will see. Tomorrow will be hugely enlightening for us all.