Letter to MB4 Jun 2025 07:58
Dear Mr. Buck,
I am writing as a concerned shareholder to express my disappointment with Petro Matad's ongoing operational delays and to seek clarity on the company's strategic direction.
Despite the Heron-1 oil discovery in 2019, it is now mid-2025, and the well has yet to achieve stable, commercial production. The protracted process of securing land access, particularly the delays in obtaining State Special Purpose Land certification for Block XX, has been a significant impediment. While local approvals were finally secured in May 2024, the lack of progress at the provincial level remains troubling.
Furthermore, the production rates from Heron-1 have been underwhelming, and the outcomes of Heron-2 and Gobi Bear-1 are still pending. The financial strain is evident, with continued losses reported and reliance on equity raises to fund operations.
Given these challenges, I urge you to provide a detailed plan outlining:
1. Timelines: Clear milestones for achieving full production at Heron-1 and Heron-2, and the expected outcomes for Gobi Bear-1.
2. Regulatory Strategy: Steps being taken to expedite the State Special Purpose Land certification and mitigate future bureaucratic delays.
3. Financial Management: Strategies to achieve financial sustainability and reduce dependence on shareholder dilution.
4. Renewable Energy Ventures: Clarification on how the SunSteppe projects align with Petro Matad's core competencies and contribute to shareholder value.
Transparency and accountability are paramount. I look forward to your prompt response addressing these concerns.
Sincerely,
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