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Given the Government’s interest in getting local oil production up and running, might they enquire into why this has been so delayed? Given progress in other projects in country it is implausible that the delay has been solely due to the reasons offered by Mike Buck.
Yes, very difficult to extort something from you when you have not yet made a discovery! The question is who is behind the activist(s) who are commonly used to extract concessions from mining etc companies.
Processes are not necessary slow inMongolia . It very much depends on where political interests lie and whether political infighting exists. I very much doubt that political interests are aligned in this case.
As you rightly point out Mongolia has major problems with corruption. I doubt however that it is the government behind the lack of progress. It is however conceivable that there could be powerful forces at play trying to get in on the action (now we are on the cusp of exploiting the oil) or to enhance their share of the take. This could well involve interests within the company, including Petrovis shareholders or even individual powerful politicians. This is not an uncommon occurrence within Mongolia. It is very easy to undermine progress, whip up opposition or delay permissions until such times as demands are met. If indeed delays are due to such causes there are remedies available and it is incumbent upon Mike Buck to utilise them. Not to do so not only leaves this AIM listed company and its officers liable to regulatory action but is highly likely to undermine the company as a whole and importantly the value to the shareholders.
Given the progress made by a number of others this year I truly believe there is more than meets the eye to MATD’s failure to secure a rig and deliver as expected. If this is indeed the case then the company are obliged to inform the market. Not to do so may render them, including company officers, liable to regulatory action. There is certainly a case for increased scrutiny of the alleged reasons for lack of progress this year.
If the oil was ready to export I would agree. As it is we have no idea when this might be the case. Experience and lack of clear and timely communications from the company do not instil confidence that it will be this year.
It is simple. If the company has operated within the rules and regulations then they have nothing to fear, nor do shareholders. If they have not then they deserve to be sanctioned accordingly. Passing off potential wrong doing as capitalism is lazy. This is about upholding a rules based system and being seen to do so.
If this matter is now sitting with the Mining Minister experience suggests that the most effective way of driving the EL forward would be for MB to meet with the Minister (easily achieved in Mongolia) and secure his agreement for an immediate signing .
Manro, I believe you are right there is corruption ongoing here. The question is how are the company going to deal with it? This is an MPP supporting company at the time of an MPP Government with a strong mandate. It is certainly within the power of PM Khurelsukh to expedite this matter should he choose to do so. One needs to ask what is stopping him?
The only way this is going to consistently have an upward change is for the market to become aware of the potential. This doesn’t happen by osmosis, but requires extensive marketing significantly beyond the efforts to date. A professional marketing approach is required. Without it I fear we will remain in the shadows, and exposed to the vagaries of the day traders irrespective of the undoubted potential. It clearly is time to wake up and get the word into the international stage.