Member Info for MisterPositive

Here...i have copied and pasted for you:

Block XX

"The royalty in this PSC is 5% of gross production. The contractor share of profit oil is 60%

for production less that 25,000 bbl/day. The bonuses are modest with US$0.5 million on

first oil and annual bonuses (training, support and development) of a modest US$65,000

per annum.

Through being a low cost onshore development, shareholders are relatively well protected

against any weakening of oil prices. The fiscal regime allows the oil companies to benefit

from any increase in prices. For example, at a US$50/bbl Brent price, Petro Matad sees an

overall contractor take of 45%. This rises to a 50% take at a US$60/bbl price. This gives

exceptional gearing to the oil price."

Brent price been hovering close to $80/bbl.

Our Profit share would be close to 60%.

//Velociraptor has an 8% royalty, with 55% to DQE reducing to 50% once in profit. Ouch.//

Doc83

What do you nean Ouch ???

Contractor is MATD not DQE...you fool.

You keep going off on totally wrong tangent and keep putting DQE as contractor. Learn to read PSC terminology.

DQE is just drill operator.

Similarly in Block XX (Heron)

Contractor share (MATD) is 60% from profit oil.

We do not shut producing oil wells.

Oil production continues all year round.

Sir Bob

Production continues 365 days a year.

Development costs across Block XX not just Heron

Correct. That would be circa 54% - 55% per barrel

Cash coming to us.

We can Model at higher Oil prices. Every 10% increase in Oil price adds US$+40M to Heron NPV

Doc

Have a look at below post from CondorMan outlining detailed breakdown of steps under PSC

Govt share of profits comes right at the end after our Cost recovery first. Only thing they take directly from Gross Revenue is the Royalty %

Large portion of cash received from Oil revenues goes towards Cost recovery of our Development costs and Operational costs before you get to the Profit share split as outlined in PSC terms.

Many folks incorrectly assume 50% Govt profit share from Gross Revenue. That is wrong.

Thanks CondorMan. Our posts landed same time.

I get $38.5 /barrel as MATD profit share @ $70 oil

Gross Revenue $70/ barrel

Royalties $7 (using 10% rate)

Transportation costs $8

Net Revenue $55

MATD entitled to 40% cost recovery $22

Remaining profit $33

MATD profit share as 50% $16.5

MATD profit share as 55% $18.15

MATD profit share as 60% $19.8

Total recovered by MATD would vary between $38.5 and $41.8 per barrel (Avg. $40/barrel)

No Doc. Not true and you not the only one here.

Many here are unclear about the PSC terms.

We get to keep majority of the Oil revenues up until we recover all our "Capital costs" and Operational costs referred to as (Cost oil). The remaining money is known as "profit oil", and is split between the government and the company. 

We could see an interview this week to coincide with Heron-1 work over dates and DQE deals.

Those spouting fund raise really clutching at straws just to get back in lower. That is always their ace card they use when nothing else works.

We got enough cash till July 2024. We got around $9m - $10m in bank to get Heron-1, 2, 3 and 4 online pretty quickly. May be more wells. They only cost $1.2m per well approx.

600 bopd @ $70 / barrel $15.3m annual revenue from one well.

Trucking cost to PC process facility only $8/barrel for onward export to HoHut oil refinery across the Chinese border.

Project above for 4 wells initially. Then project above for 20 wells from Heron-1 within next 12 months via DQE fast track deal.

Zak Mir target end of this month 8p

Heron Oil field looks to be lot bigger on the map.

One of the best Oil quality discovered in Mongolia much much better than even Petrochina wells.

SOCO International first 2 wells from Block 19 across the boundary on their side 19-13 and 19-14 flowed at 350 Bopd. Huabei Oil services (subs of Petrochina) was the drilling company who then bought 10% stake in Blocks 19 and 21.

5% was held by Petrovietnam

85% SOCO

10% Huabei oil services

Petrochina later made the Offer to take 100%.

Heron-1 flowed at 850 Bopd which is more than twice the rate vs Block 19 early discovery. Petrochina later had 25000 Bopd producing from 50 wells at its peak dropping to around 16000 bopd currently.

New Oil refinery needs 30000 bopd.

Heron Oil field will need to plug the 14000 bopd shortfall and will be fast tracked. Blocks 19 and 21 are the only ones producing oil currently in Mongolia with Block 20 to come online pretty soon.

Institutional Investors and Fund Managers should soon be adding MATD to their High Growth stock portfolios in my view.

Doc

Were you really expecting any intelligent answer from BP ???

Other than his usual one liners....

Ibiza

Like your thought process on Block XX. There are different scenarios all of which should add substantial value for Shareholders in coming weeks and months.

With respect to V1...MB just had to drill it before Block V licence expires in June 2024. At a low $1.7m drill cost it was worth a shot. Positive results at V1 would have transformed share price overnight. V1 result created a temporary distraction no doubt as evidenced by superfast price recovery on the day. Still need to recover another 40% or so to re-test 7.30 high in May. Pretty confident next week should see a strong price recovery breaking past May high en-route to 8- 10p bracket pretty quickly ahead of incoming news on Multiple fronts.

I am still not clear about details of what business was conducted exactly at IOM meeting with top Mongolian Govt officials present in MATD registered office.

Both Heron-1 and Gazelle-1 were reported as discoveries from what i remember back in 2019.

Think they ran out of time to do proper flow tests on Gazelle-1 and said they will need to come back to Gazelle as they were busy with Heron-1 discovery.

Zak Mir yesterday bulletin board heroes prediction 8p this month based on recent chart action.

I would say 10p next week is on.

Ecellent Charts / TA now to push ahead next week on strong momentum ahead of multiple news.

Ibiza.

I am not sure is the honest answer. Unless MG own a % of shares in Petrovis Group. Then yes MG would have an indirect stake also in Block XX via Petrovis.

News next week sir.

MG wants to get things fast tacked at Heron-1.

Will not suprise me if MG take 10% stake in MATD or Block XX. That sort of RNS would catch out many here.

After a roller coster week we still 1.2p lower from 6.50 hit last Friday and 2p lower from May 7.30p intra-day high.

Strong week(s) coming up with momentum back and news incoming on Multiple fronts.

There seems to be consensus building for 10p near term target which is where we headed. News flow could take it higher though in my view.

Expect a fast ramp up in Production also.

They need 30,000 bopd for the new refinery.

Petrochina Block 19 Production dropped to around 16k bopd. Shortfall has to come from HERON.