Member Info for ManxKippers

I believe the running costs are the everyday running costs - not the investments in infrastructure or drillings etc.

I believe that during the winter hiatus, there is very little cash burn due to the suspension of acitivites caused by the extreme weather.

My understanding is that the costs last year were for the test drilling, applying the well head and infrastructure around H1 for sure. I am not sure if the nodding donkey was actually constructed and commissioned to H2 or whether this still remains in storage as a bought and paid for item awaiting deployment.

I can not answer your question exactly. But I took comfort with the fact that there was $3 million cash at the end of December. Monthly costs and resulting cash burn of under $250K per month. Income coming on stream of that amount as things stand back dated to November last year. An expectation that the income should multiply by possibly up to 4 times after the sand screen is fitted. A stated gentle year of low cost acitivities for consolidation of the company to ensure income and profit are achieved without burning through cash.

I feel we are in a good place right now.

It is also worth stating that the average wage in Mongolia is about US$633 per month for Mongolians as stated on the internet.

As a guess and based on 16 employees as stated on their company info - therefore.......

MATD will have some western experienced emplyees there - say 6 people, on perhaps $15,000 per month each - totals $90,000.

Then 10 Mongolians on say three times the average wage at say $2,000 per month would be about $20,000 total.

MB on say $28,000 per month. 3 x Directors costing about $50K each per year - $150,000 per year, would be say $12,500 per month cost.

Total wages would be about $151,500 per month. Then add office rent and costs with cars to run, flights etc etc.

$250K tops would be about right. Though as stated, I doubt it would be less than $200,000.

ADW - I asked the last question that was answered as a live question - so MB was put on the spot.

The question was what the monthly operating costs were for MATD. Whilst he said he didn't know exactly he stated that the monthly running costs were more than met by the income that H1 was generating on a monthly basis - this being 200 bpd with $43 per barrel margin.

We can therefore deduce, assuming everything is totally correct from MB, that the running costs are no higher than $250K per month for MATD. They could be slightly less but I would be surprised if they were below $200K per month.

I hope this helps.

Wow! 1,070,000 shares sold at 10.22 for 1.75p. That means the buy must be over 1.80 now.

Fascinating and good!

Black gold up in the toon!!!

Yes Abzzba. It gives me no joy to post the news - but sadly it looks inevitable.

The world us such a turbulent place. China also pictured with huge landing bridges on barges for Taiwan.

Argh. Everything noted with sadness and foreboding.

Iran firmly in Trump's sights.

Are we going to see a huge BOOM 💥 as a result? It seems to be getting closer and closer after the strikes in Yemen today.

SP down to 1.42p. That is OK.

People still digesting yesterdays news and a little shake out of investors who wish to downsize.

I believe that once the agreement and export license is completed, and the sand screen is reported as sorted and the flow rate probably tripples for H1, then sentiment will change mighty fast and the market will give a mini rerate for MATD.

We will see - but it won't be long.

Master - totally correct.

The slight mis-information and over excitedly joining of the ficticious dots was based on the MG announcing the forst 100 days of 2025 to be focused on oil production issues and the sector.

Then the news that the refinery would be ready by Spring next year which was a sudden change and quicker than anyone had thought.

Then the assumption that if this was correct, there weren't enough wells sunk and rapid and immediate action was required by MATD as a result.

As we saw yesterday, that is not true. The absolute urgency for wells is not necessary. MATD and MB can grow the business more carefully and protect the shareholder value as a result.

I am happy.woth this.

Correction - ...but he did state that the costs were less than the current income rate being pumped from H1.

(Perhaps not his exact words but as I recall!)

Sorry

TonyBaby - I asked the question live during the AGM.

We knew that MATD were focused on low cost operations and shaving costs. We knew that they were pumping 200 bpd with a clear margin of $43 per barrel. I was trying to establish whether the income generated was sufficient to cover their fixed monthly costs by asking the question about their monthly costs of operation.

MB answered that he didn't exactly know - having been put on the spot and kindly answering the question - but he did state that the costs were less than the current income from H1. That was helpful, reassuring and enough for me to establish what the rough burn rate is and what the cash position is and whether they need to do a raise or not - which I believe they do not need to or want to do.

I hope that helps.

But ADW - that $7 million was to sink Gobi and H2 and operate.

The burn isn't anywhere near what you state.

They have $3 million cash at the end of 2024. Their costs are more than covered by the 200 bpd pumped from H1.

All is fine. They must be down to about $2.5 million and about to top up to over $3.5 million. Cash will grown and not burn!

So much rubbish with barbed innuendo today.

To put a bright spell on proceedings, the long term weather report now has every day with positive daily temperatures above zero from now on.

Work on putting the sandscreen onto H1 can hopefully be done in the next month and out daily income after costs are deducted can grow to $25K per day.

That puts MATD on track for a clear profit in the region of $3 million for 2025 immediately, and an annual profit of over $5 million per year just becuase of H1 assuming a flow rate of 600 bpd or more.

I repeat TenBag Tag - the company seems to have sufficient funds not to panic.

No raise needed.

Circa $2.5 million in the bank. To rise by $1million immediately on receiving the export license. To rise hopefully by a further $500K every month as soon as the sandscreen is fitted and production increases to 600 bpd.

That is just H1 - nothing else.

We have a viable company here. Safety at last!

We also learnt that MATD had $3 million in cash at the end of 2024.

They are operating within the monthly cash position of what is flowing at 200 bpd from H1 - this is a total of $250,000 per month.

At worst, their cash burn is $250,000 per month without the any sale.

They should have a minimum of $2.5 million cash in the bank and this will raise by $1 million as soon as the export license is issued.

The company is sound, stable and self funding. Pretty good - no???

Blimey Stockmaiden.

Very random post after what has been disclosed and stated.

If your sitting on a moving train but insist on facing backwards, the train is still going forward!

MATD is going forward and will generate cash surpluses this year and is operating confortably within income levels that will be instantly monetised once the export license is issued.

Where is the negative in that?

Abzzba - I am a little more bullish.

Signed contract with export license - at least 2.5p per share. By end of March.

Sandscreen in place and H1 confirmed as producing 600 bpd minimum - at least 5 per per share. By end of May.

Signed deals with Sunsteppe or solid news for a JV - SP up to 7p per share by end of July.

If there is news re stimulated wells with a flow rate of a further 200 bpd plus, then add 2p per share per well or per multiple of 200 bpd - hopefully by end of June.

End of year circa 12p to 20p per share.

Also WOS - and witht he greatest respect - I truly wouldn't want to fill your gap! Sorry!! Lol.

I think rockets will come - just not today WOS.

I need you there with your match ready to strike the fuse when the time is right!

It wouldn't surprise me if they didn't drop another well or two this year. I would assume that any well sunk would not be in a JV agreement.

In addition to WOS - my key take points:

Operational costs less than earnings from 200 bpd from Heron1. Company self funding as soon as agreement is signed - very soon!

Understanding about need to avoid raise and sense this shouldn't be necessary at this time.

Earnings circa $43 per barrel x 200bpd = $8,600 per day income = $258,000 per month.

Adjustment to H1 with sandscreen in place should be at least $774,000 per month income - $9.3 million p.a.

Other wells - H2, Gobi for example, to be stimulated and could deliver another good upside.

Understanding the need to strategically drill by existing wells for successful strikes - but slight risks are present as seen with H2 for eg.

I see this as all positive and still on course with a vastly under valued sp!