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And dont forget......this unlocks bank debt now.....so they can borrow and dont need to do placings.

As was always the plan.......production then farm out and bank debt.

The Gazelle result might mean there is now a bigger target in Block XX than the Raptors............ I think thats the reason they scrapped the Raptor for now............so much big upside now in Block XX.........Erdenetsagaan area....... :)

I have a bloody lot of shares.....like.......bloody lots.

There is a lot more good news to come with the reprocessing and the Gazelle post well studies.

They did not case the well for no reason......there are reasons..... :)

Just got to be patient now and let the value come out over time, listen to what Mike says in the interviews he will give in the weeks ahead.

At 25MMBO Heron is worth 18p a share....... 9p if you farm out 50% to PetroChina for them to pay for the development wells.

Now.....at 40MMBO its worth 32p a share.......or 16p post farm out.

And......what will the implications of Gazelle post well evaluation be......the next big surprise........

Going to be a very nice 2020 for all MATD holders of that I am sure.

https://www.proactiveinvestors.co.uk/companies/news/905311/88-energy-continues-countdown-to-charlie-1-in-alaska-905311.html

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As I have said............

The flow rates and data have to be robust............not a quick fumble in the dark..........robust flow and pressure build up data. Thats takes a long time.

Why robust ?

Because they will be taking this to the bank for debt funding and also to PetroChina for farm out. Data has to be spot on, solid, robust data.

Now, the idiots will tell you placing, no need just flow test it quick and do a placing.......because they are idiots and also they want to frighten people into selling. Their whole mantra is scare people into selling to get the price down.

So........the flow test results will take time........most likely coming next week is my feeling, Monday or Tuesday.

I am expecting very good results and loads of PR following the results............so fingers crossed.

Can we stick to the facts here.

Heron-1 well tests are ongoing - results will be good or bad - but only known when the tests are finished and results are known.

Gazelle-1 has struck Wet Gas with NGL content and also 3M of net oil pay at a sub-optimal location for the upper secondary target. This will be tested in the future, not only the NGL content from the wet gas but also the 3M of net oil pay.

The company has plenty of money as they are not drilling well 6, based on current forecasts and plans they will still have net cash end of 2020. What happens in 2020 all depends on Heron-1 and Gazelle-1 and then any farm out or bank debt undertaken.

That is the facts as we stand today. You can deramp as much as you want, you can be abusive and name call all you want, you can do your very best to scare people into selling - but the facts are the facts until new news is released which alters those facts.

And then.....news comes at 7am........ LOL

Utter nonsense being spouted. The company has plenty of cash left, as they are not drilling the 6th well. This enables time to get Heron-1 on commercial production by year end and then farm out Heron and get a bank loan based on commercial production.

All sales and transport costs can be reclaimed against oil sales..............so MATD can either use the PetroChina facility or truck to the border and sell...........as clearly stated.........they have plenty of choice how to sell, its up to PetroChina to make a proper offer.

The derampers are trying every single angle to get people to sell.

Its been said, for a long time.........the path is clear........commercial flow rates........bank debt and farm out. No placings at low prices. All we need to kick things off is commercial flow rates at Heron of 100 to 200bopd and then its game on.

Bank debt opens up with commercial production and then farm out.........job done.

October has 31 days.............and if news comes on the 31st its still released in October.

And every company there is always renews or extends their ability to place shares at the AGM. This is completely normal in an AGM resolution.

Have a read through all the AGM resolutions of every AIM company, its completely normal. No board of directors in their right mind would ever limit their ability to protect the company and the shareholders - and one of those protections is the ability to raise money whether its needed or not.

Just add a pause in there......

“ In light of the additional ......................and ongoing expenditure on well testing at Heron-1 ......”

Read the previous RNS where the company says additional costs are being minimized by putting the rig on stand by.

Did it say “ In light of the additional ongoing expenditure on well testing at Heron-1 ......”

or “ In light of the additional AND ongoing expenditure on well testing at Heron-1 ......”

If you think there is additional testing - when the company has clearly said end of October for test results....... you are seriously misreading the RNS.

You clearly have ignored they mean the additional cost, as previously in RNS, resulting from the delay at Heron due to the G2G permit.

There is no additional testing...........the ongoing testing to end of October is ........ongoing as its only the 22nd today.

There has been NO ADDITIONAL TESTING............

The company said testing results by end of October.

The company said due to the additional costs (the delay at Heron when the rig went on standby) and the ongoing testing.......

Only those who cannot read English would suggest that it means additional testing.........it was the additional cost of the delay at Heron due to the G2G permit.

Flow test results.......the company said.......before the end of October all being well.........so, given its the 21st today......up to 10 more days to go before flow test results due.

MATD refer to the Erdenetsagaan area as Leads...... but now Gazelle has proven the play type, this can now be fast tracked and prioritised. See the pic link below.

https://i.ibb.co/HzGLQHf/XX.png

USGS reckons there is gas and oil recoverable from the Tamtsag basin and point to the southerly extremes with Erdenetsagaan. Now with Gazelle proving not only the Strat Pinch Out with 3M of very good quality net oil pay.......but very valuable NGL's in the Wet Gas section (how thick we currently do not know and we also do not know the composition of the wet gas and what NGL's it contains and their densities) I am sure we are not going to hear lots about the Southerly area of the Tamtsag basin which is Erdenetsagaan.

Yes Alexios, they are also saying its currently not commercial and giving it a CoS.......which means any value they assign to it is risk weighted down to a lower value.

Flow the oil, declare commercial.....and the risk weighting is removed and the allocated price per share goes up significantly.

This is the basics of how you value an oil company if you wish to use risked values.............. Block V Raptors have risked values and they dont even have proven oil yet...........

I was excited with the Gazelle news in terms of the potential upside in the Southern Tamtsag basin which Mike Buck alluded to.

If you look in the picture below........Heron is the part in Block XX identified as Tolson Uul.

https://i.ibb.co/YTkfWDf/Tamtsag.png

There are 2 large, very large prospects at the Southern End of the Tamtsag Basin, these are identified in the pic as Erdenetsagaan and East Erdenetsagaan.

If these are now proven plays and derisked with Gazelle results - which Mike alludes to with the word "material" - you can see from their size, compared to Heron size in Block XX that these are not just material, they are potentially larger that the Raptors.

For me I believe we will see the Raptors become a low priority and the 2020 priority apart from, all being well, production from Heron-1, farming out Heron and developing Heron with the farm out and bank debt........ drilling most likely Erdenetsagaan......

Depending on how Heron-1 flows, how much oil they get out as quick as possible, the terms of the farm out of Heron etc.... maybe just 2 explo wells in 2020....... Erdenetsagaan and the cheapest shallowest Raptor prospect.

Do an NPV10 calculation.

I mean..........your argument started by saying that MATD, with a producing well if Heron-1 flows, would have Prospective Resources of 25 MMBO.............. how can you have it all as PROSPECTIVE if you are already producing ???????????

Take a look at the NPV10 values in the presentations.

I think you have been looking at too many explorers who are not producing, who have found oil in the middle of nowhere with zero production.

We are talking a valuation here for MATD who will be PRODUCING oil (all being well) from a proven oil field. So why would you be talking oil in the ground values for the middle of the sea in the middle of nowhere with a bad PSC and loads of tax to be paid.................

NPV10 - the figures are out there.

The market is currently valuing Heron as nothing, as non-commercial.......... that will all change, massively, if the well flows and all being well by year end Heron will be on test production generating cash flow.

Firstly, we are talking onshore. Secondly we are talking the Mongolian PSC terms.......one of the best PSC terms in the world. This is super cheap to develop and highly valuable oil. This is not offshore middle of nowhere not going to be developed in the next 10 years oil

NPV10 value for a 25 MMBO size would be circa 18p a share. NPV10 value for a 40MMBO size would be circa 32p a share.

Alexios, they value it as RISKED 6p.

RISKED means risking it as being UNCOMMERCIAL......... all prospects are RISK WEIGHTED until they are proven.

This is why they assigned RISKED values to the Raptors in Block V - which dont even have known oil yet.

Once Heron-1 flows then Edison will changed the RISKED value.........and it will rise significantly from 6p.

Come on, are you saying you really dont know about risked values ??????

Lockyer, there is no reason for Mike not to now be allowed to be as positive as he wants. Therefore, I expect the new few RNS to be very very positive - lets just say, he might now have his localized restraining chains removed............