Member Info for Proselenes

TLW in their statement say they are assessing the commerciality of Jethro........which in general speak means it does not look good and they will talk about it for a long time until everyone forgets it, then sweep it under the carpet....... is the likely scenario. Shame, I was considering buying some ECO, not now. Wait for May 2020 now perhaps.

Certainly will explain the background selling thats been going on with the news today- heavy oil and high sulfur content, wont excite people much. TLW quite downbeat on it in their statement.

Considerable interest in the Cenkos broker note, near 300 people have downloaded it from the link below.

https://ufile.io/kc6srgsr

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Mike Buck is now also going to be speaking at the Mello Event tomorrow (Tuesday 12th) at 15:25

https://melloevents.com/wp-content/uploads/2019/11/ML19Schedulev3.pdf

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New Corporate presentation out.

https://www.petromatadgroup.com/wp-content/uploads/2019/11/Corporate-Presentation-11_11_19-Petro-Matad.pdf

All good and as expected.

Heron bigger than 25 MMBO recoverable.

Blocks V hoping to extend so can drill in 2021, focus on Block XX in 2020.

Upside from Erdenetsagaan are in South - 85MMBO recoverable.

Only need 10m to 15m US$ to get into cash flow positive and self funding.

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So the question for Mike......will it be Petrochina farming in ? or bank debt ?

A lot of the Naysaying you see on bulletin boards is simply shorter term traders. They see 88E as a great trade ahead of drilling, but at the moment their funds are in other companies with short term potential rises (shorter than 88E). They see 88E rising and they start thinking they missed the boat, they cannot sell the other shares and so start deramping 88E as much as they can thinking its going to hold the price back........and try to hold the price back until they sell the other shares in a week or month or Christmas or whatever - and then they will buy 88E.

That is the way of the world I am afraid....................

mpls, not sure, all that was said is Malcy is meeting up with Mike this coming week.

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Mike is going to be busy next week, so far he is :

Shareholder update and presentation meeting on November 12th morning 9am

https://www.investegate.co.uk/petro-mat ... 00023019S/

Followed by

Presentation at LSE event, late afternoon on November 12th.

https://www.eventbrite.co.uk/e/oil-gas- ... ff=Twitter

Also next week he is meeting with Malcy, so an update from Malcy will also be done.

https://www.malcysblog.com/

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A very good read

Here is a download link to the November 2019 Cenkos note on 88E, in PDF format.

https://ufile.io/kc6srgsr

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Reviewing what the chief Mongolian geologist said in the Bloomberg TV interview, he seems to say that they found no Oil/Water Contact. They were expecting to find an OWC however they did not. Therefore, based on their being no OWC discovered as yet, this means Heron could be much larger than their pre-drill estimates, as it will contain oil over a much larger area.

Interesting.

They will submit to MPRAD all the data on the discovery, leads, pressures, sizes, production and the MPRAD will review and then confirm it on review, and award the Exploitation License. The process for awarding the EL is the same as a CPR. It is this report by the competent persons that is reviewed by the MPRAD to award the EL.

Once they have the EL - the data and info has been approved - and its bankable in terms of a farm out or bank loan.

:)

I think you are going to be surprised by Block XX. Given the Strat Trap play was proven by Gazelle, there are some very material leads at the South end of the Tamtsag basin.......could be looking at around 300 MMBO recoverable in total. Bigger than Velociraptor. I hope Mike talks about these with his updates.........and says he is going to concentrate on Block XX in 2020 - and only drill on the Raptor if he can do so cheaply with something.

Lets see what the presentation brings in terms of updates.

This was GMP First Energy comment on I3E on 29th October.

Very good well results at Serenity

Serenity -1 encountering 10 feet of net oil interval in good quality
Captain sands is very good news. The net oil interval was thicker than in
the up-dip Tain discovery (1,000 metres away); consistent with i3’s
expectation that the Captain sands thicken to the west. The results are
closely in line with i3’s models that estimate potential oil in place of 197
mmbbl. This well probably also forces the Tain’s partners to negotiate a
commercial solution to develop Tain/Serenity and boosts the tangible
value of the company.

At Liberator, with the review of results of the recently drilled L2 well and
rework of the company’s model, the overall contingent resources have
been reduced. However, with an additional well (named A3 but not to
be confused with the previously named A3 well now renamed A4),
Phase I is now expected to recover 23 mmbbl with four wells instead of
18 mmbbl with three wells.

The re-processed seismic data previously believed to be too noisy for
interpretation now suggests increased in place prospective resources of
396 mmbbl (+170 mmbbl) but of a higher risk.

i3 will now drill the A2 development well as a replacement for L2
instead of an appraisal well in the contingent area. i3 is working an
extension with its debt providers so that the RBL can be entered after
Dec ‘19 while remaining compliant with the terms of the Junior Facility.

The shares continue to offer a very large potential upside in a success
case. We are increasing our target price from £1.40 to £1.50 to reflect
the changes in volumes and the success at Serenity.

Further details on Liberator Phase I. The volumes in place for the A1, A2, A4
wells (L1, L2 and A3 previously) have been reduced by 9 mmbbl to 46 mmbbl.
While the in place resources for A3 area have been reduced by 19 mmbbl to 17
mmbbl, an overall 23 mmbbl are now expected to be recovered during Phase I.
SPEC BUY recommendation with a target price £1.50 per share

Our target price has been set close to our new ReNAV reflecting lower
2P+contingent resources at Liberator offset by larger amount of prospective
resources and our increasing the risked recoverable volumes at Serenity from
from 10 mmbbl to 14 mmbbl.

LOL.....

When the companies broker says that bank debt and farm out will be pursued for funding development of Heron........ you say both are not possible and placing is the way........why is that ?

RBL.......look at I3E, reserves based lending. Liberator will be developed using RBL.

Any company which has bookable reserves can use bank debt.........which is why MATD are getting the Exploitation license in place asap, that opens the door to bank debt and farm out.

Why do you think testing has been so extensive ? They did not do a quick poke in dark test and P&A the well, they fully tested it and its going into production soon.

Production means reserves and cash inflow. That enables the use of a lending facility to develop. Banks will loan against a real asset. A real asset is what Heron is, now its proven to flow and is fully tested.

All will become clear when Mike presents on this and other subjects on the 12th November......until then, keep on deramping with the placing BS.

Definitions of fund raising :

Farm Out
Bank debt / RBL
Placing
Convertible loan

The question is not whether a fund raising will take place, the question is the format of it.

The derampers here are ignoring farm out, ignoring bank debt and focusing 100% on a discounted placing because that suits their agenda of scaring people into selling. When they are wrong, they will all slide away and disappear.

New Cenkos note out today on 88E. Extract below:

Valuation - Drilling of the Charlie-1 well will be a defining moment for the Company, as it seeks to prove the conventional potential of the Project Ice wine acreage. We have updated our model for both the HRZ Shale and the Yukon Leases, whilst updating a full DCF model for the Icewine Conventional acreage. The result is an increase in our valuation and our price target to 4.8p and reiterate our BUY recommendation.
Whilst the early stage nature of 88 Energy’s portfolio makes our valuation speculative, the upside potential is huge, unrisked, we value the 88 Energy portfolio at 47.8p per share or US$4.8bn.

Means we will get an Operators Update on or before the 12th of November. Looking forward to the updates and latest news on testing and everything else.

https://www.investegate.co.uk/petro-matad-ltd--matd-/rns/shareholder-update-meeting-and-presentation/201911051000023019S/

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Questions for Mike for anyone going to this event :

https://www.lse.co.uk/events/oil-and-gas-investor-briefing--speakers-from-petro-matad-nostra-terra-eco-atlantic-and-coro-energy-tvgy7u7vdfwzrhs.html

Estimation of 2019 year end cash level of 6m to 7.5m US$ range ?

Gazelle will be tested in April when testing rig can work again ?

Gazelle drilled on edge, expecting thicker play in alternate location and Gazelle also to be commercial with an appraisal drill ? If Gazelle1-1 flows in current location, will you put that on commercial production prior to an appraisal well ?

Stratigraphic trap play, proven in Gazelle, whats the upside in Block XX in terms of new prospects around Erdenetsagaan area (southern edge of Tamtsag basin) ? Old data would suggest over 300MMBO recoverable potential in Block XX.

Heron, given the shallower depth (increased area) and higher porosity - expecting an upgrade on the current 25 MMBO estimate ?

Will you be utilising a pump at Heron-1 to potentially flow at 1000bopd or higher ?

Once the Exploitation license is awarded and you have an asset with which to get an asset secured loan, will you pursue bank lending to develop Heron in the event PetroChina delay any farm in to it ?

I am sure we will have an operations update before the 12th, or on the 12th, so Mikes presentation can go into a lot more detail, so some of those questions might be answered already.