Member Info for Proselenes

Sundaysun, will take a few days for logging. They have to pull up the entire drill string once they get to TD, then put the logging tools on and lower all the way back down to TD........and then measure with the logging tools as they pull them back up the hole again.

Then the data gathered needs to be analyzed by the team.

Sinopec told MATD that Snow Leopard-1 would take 70 days to drill. So lets go with that.

Spud was on 9th July, so 10th July was day 1 complete of drilling operations.

This makes yesterday (Friday) day 60 of drilling operations, and Mike Buck said in the RNS that drilling operations were ongoing, so they were still drilling.

If you put 60 days of drilling into the SL-1 diagram they would have been slap bang in the middle of the main target yesterday (allowing for some seismic correction of vertical depth). If they are slightly in advance of 70 days total drilling then they will be through the main target as of yesterday.

They do not have LWD (Logging While Drilling), the rig will drill the well to TD and then they will do wireline logging afterwards with a suite of logging tools.

Until the logging run is done (when drilling is completed) they are not in a position to clearly state if they have found anything of significance or not.

They can be encouraged during drilling (cuttings in the drilling mud returns have oil shows) but this is not enough on its own, the full suite of logging has to be done after the drilling operations are completed and only then, once logging is done and the results known, can the company update if anything has been found of any significance.

So, is there any significance of releasing the Half Year results with a Block XX update yesterday ? For any junior oil company with no production results time will also see the muppets home in on the loss (pretty impossible not to make a loss when you have no production) but its a normal time of share price falling as headline is always the loss. So were they cleaning out all the not so positive news ahead of Snow Leopard-1 news so there is no detracting from SL-1 results and then WH-1 drill ?

Given ongoing drilling, the potential for oil shows in the cuttings of the drilling mud and they are in the main target zone now...........one wonders if they have positive signs from the main target zone which made them confident enough to release their half year figures and XX ops update early and get it out of the way.

Interesting next two weeks. Really dont know when news will be. Drilling was ongoing when they wrote the RNS.......but it may have had 10 meters to go to TD, or 800 meters....who knows. Logging could start tomorrow, or next week, or next weekend.......or after the AGM......

Weather forecast is good for Mongolia this year, so far weather should be around average to slightly above average temperatures into mid November, which means they have a good 6 to 7 weeks from end of September, Wild Horse-1 is scheduled for 30 days to completion as the geology there is benign and depth is shallow compared to SL-1. So provided they rig up and spud WH-1 by the end of September they will easily complete well ahead of the end of the drilling season.

The pointers (timing of HY results/Block XX update) are suggesting that Mike Buck is indeed "Looking Forwar

Point is :

Outstanding issues with Block XX - one was the technical permit. Resolved now it seems. Nobody else seemed to mention on here you need a technical permit and drilling permit, only me.

Delay - Mike Buck states that the contractor was unable to supply the rig type that won the tender, and so based on this they have cancelled. Mmmmmmmm the question is, is the delay really due to the rig type, or that MATD used this as an excuse as they have very encouraging signs from Snow Leopard-1...................

My post from 29th August............. Mmmmmmmmmmmmmmmm

MATD
RE: Where is RNS for drill contract 29 Aug '18

If you think out of the box for a minute............

Block V with a discovery at Snow Leopard-1 is worth XXXXXXX to a farm in partner.

Block V with a discovery and an appraisal well (plus Fox-1 to be drilled early next year) is worth exponentially more to MATD.

I did raise a question a week or so ago about maybe they will scrap the Block XX drilling if they strike at Snow Leopard-1.

The reason is that an appraisal at Block V is worth so much more to MATD than Block XX is.

Farm in partners dont care one jot about Block XX. BG farmed into Block Iv and V and were not interested in Block XX.

So - IF they strike at Snow Leopard-1, would it be so impossible they will scrap the Block XX drilling and go all out to appraise Snow Leopard and add lots more value to a farm in deal.

I think this scenario deserves some thinking..................especially when you consider Block XX still has some issues. If you don't know what the issues are I suggest you research more.

So perhaps MB is delaying the rig contract for Block XX until he knows for sure or not whether SL-1 is an oil discovery or a duster...................

Something to think about anyway, even if it ends up not being the case.

For those who need it..............watch the animation in the link below.

Once the well has completed drilling to Target Depth, then Wireline Logging will take place

HTTP://www.arescotx.com/photos-videos/well-log-animation/

Only after logging and the Competent Person signing off the findings will there be a release to market of the results of the well.
.

Based on the latest info the drill schedule should be as below, however, if they strike oil at SL-1 or WH-1 this year I expect it to change again with Block XX being dropped and the focus being on appraising any oil discovery at SL-1 or WH-1. AIMHO.

DRILL 1) Snow Leopard-1 well (Block V)
Spudded 9 Jul 2018, 70 days max to complete, “results expected mid September”.

a) 90 mmbo recoverable (mid case) from two main target depths (20 mmbo + 70 mmbo) (“Snow Leopard has 2 main target sections with c.90MMbo recoverable potential [mid case])”; plus
b) There could be oil in the shallow turbidite deposits opening up an extra 200+ mmbo play even before they hit the deeper levels. (“If shallow turbidite concept is proven then a large (200+ MMbo) combination trap play opens”).
c) Additionally, there are “3 or more additional stacked pay zones identified as potential upside.”

There are also 13 or 14 prospects/leads of up to 500 - 600 mmbo recoverable within 35 km of Snow Leopard 1 on their acreage. (“Success de-risks 14 prospects/leads with resource potential of c.500MMbo”).

Initial production of any find would be via trucking routes in the area to China.

DRILL 2) Wild Horse-1 (Block IV)
Spud Sep 2018, “results late Oct, early Nov”.
Targeting 480 MMBO recoverable. (mid case)

Named by Wood Mackenzie as in top 20 exploration wells worldwide to watch in 2018.

Initial production of any find would be via trucking routes in the area to China.

DRILL 3) Fox-1 (Block V)
Spud early Q2 2019.
Mean prospective resource 200 MMBO mid case. High-quality 3D seismic late 2017.
Initial production of any find would be via trucking routes in the area to China.

DRILL 4) New Red Deer prospect, 48MMbo recoverable (mid case) in a basin analogous to nearby producing basins in Mongolia + northern China, within easy reach of existing infrastructure.
Spud late April 2019, complete May 2019 (3 weeks).

DRILL 5) Block XX
Near field Gazelle prospect targeting 13MMBO recoverable & rapid commercialization.
Spud late May 2019
Near to existing production infrastructure which has spare capacity.

DRILL 6) Block XX
-TBC
-rapid commercialization
Spud late June 2019
Near to existing production infrastructure which has spare capacity.

A few today, 250K, 250K, 200K.

Someone is building a big holding.

The half year results did not need to be released until end of September, so one hopes this was a chance to offload the Block XX news, allow some buying and then look forward to good news only ahead..............

All sounds fake to me.

If you believe SL is a duster, as you state, you would sell all your shares, not a few. Saying a few (if you had any) just allows you to keep posting negatively while claiming to hold shares.

That all sounds fake to, especially with a ramp for AMER thrown in too.............. :)

Just my opinion of your post..........

Mmmmmmmmmmmmm my post from 24th of August.............

RE: Bull flag? 24 Aug '18
The lack of a rig tender for Block XX could even be construed as positive for Snow Leopard-1.

If you had very positive signs from SL-1 would you not cancel the Block XX drill for now and use those funds on an appraisal well in SL-1 block where, perhaps, SL-1 has struck oil ?

SL-1 if it strikes oil will derisk HALF A BILLION barrels of prospects in other areas of that block.......so why drill XX for 13 million barrels when you can then, derisked, go after a 150 million barrel target near SL-1...........

Captain, yes, sorry, I forgot they dont pay for long lead time items in advance or pay downpayments for drilling. They just pay cash lump sum when a drill is completed. No chance they paid anything for SL and WH in advance.......

Are you ok ? Thats a serious question.............because the things you are saying are..........well, incoherent.

Mmmmm

We believe we have struck oil at Snow Leopard-1 and want to delay Block XX as we may want to use the Block XX money on doing an appraisal well at Snow Leopard-1 location to derisk 200 MMBO and get it classed as reserves (following logging and then testing being good).

Another potential translation, just not biased in the extreme negative of the Captain......... LOL :)

Would guess a few shorters now have to close their positions by end of today, expect some large buying later this afternoon.

Tried to add at the opening 7.8p...........could not get any stock at all............

MM's will go defensive at open............mark the price way down in case any panic sellers are around who were waiting on Block XX news only (I mean, were there ?).

And then, depending on buying pressure against any panic sells (and shorters), they will rise the price back upwards again.

ColonelDrake.

Logging is done after drilling.

You cannot RNS oil shows..........you can only RNS logging results.

So until the well is logged, nothing material is known to require a statement.

However, oil in the drilling mud etc.... will all be positive signs they see and can look forward to...........but for now, until LOGGING is done after TD is reached, there is NOT MARKET SENSITIVE data to be released.

For me I have intimated that delays to Block XX could be a positive thing.

As said before, if they have an oil strike at SL-1 or later at WH-1, they will be in a stronger farm out position with more cash in the bank.

They could, if they strike, say to a potential farm in partner, ok, we will appraise the discovery at SL-1 or WH-1 and therefore reduce your risk (and increase the selling price). Block XX money can be used for appraising a big oil strike at Block IV or V.

If they drill Block XX this year - no help.

If they drill Block XX after both Blocks IV and V (WH-1 and SL-1) are drilled, its much more beneficial to their negotiation position to farm out a discovery - as in use the cash to appraise and not for Block XX.

So, I am looking forward to Mike Buck's SL-1 update, as he is as well it seems.

For me I have intimated that delays to Block XX could be a positive thing.

As said before, if they have an oil strike at SL-1 or later at WH-1, they will be in a stronger farm out positive with more cash in the bank.

They could, if they strike, say to a potential farm in partner, ok, we will appraise the discovery at SL-1 or WH-1 and therefore reduce your risk (and increase the selling price). Block XX money can be used for appraising a big oil strike at Block IV or V.

If they drill Block XX this year - no help.

If they drill Block XX after both Blocks IV and V (WH-1 and SL-1) are drilled, its much more beneficial to their negotiation position to farm out a discovery.

So, I am looking forward to Mike Buck's SL-1 update, as he is as well it seems.

You dont "look forward" to updating people with bad news.......................Mmmmmmmmmmm

Mike Buck said they look forward to updating on Snow Leopard-1 later this month......not just we will update.....so maybe a positive spin.

Half year results out.

HTTPS://www.investegate.co.uk/petro-matad-ltd--matd-/rns/half-year-report/201809070700020584A/

All good, SL-1 ongoing.

I suspected that the Technical Permit (you need a drilling permit and a technical permit) was the problem for Block XX and they say regulatory problem caused the delay. Anyway, more time to assess seismic and then 3 wells back to back April onwards.

WH-1, the big one, on track after SL-1 completes.