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Manro
I have read several of your last messages.
As a LTH I also agree with the majority of your views and opinions.
You talk sense, and I can clearly see you understand how this process should play out. I sense your frustration and I agree with you the company have made several mistakes, and on occasions put themselves behind the curve when they should of taken a different route in terms of executing the business strategy.
That said we can only hope next year is the year Matad does become a success.
Bonum, you do understand Mongolia has recently been put on a Grey List, MNT continues to slide, there is a significant shortage of USD and other currencies in Mongolia, and regardless of what you think lending from Mongolian banks is a process many have tried and failed with.
There are significant others on an international scale such as EBRD and ADB who especially have a long history with Mongolia and understand investing in country,
Am I am expert, probably not, but in terms of years of working in Mongolia and continuing to work there I can only share the slippery slope associated with an unpredictable banking system that can add significant risk to any project or long term investment.
Also bear in mind any deals with Petro China or others would have to be concluded in USD not MNT. I don’t need to explain to you FX risk.
Sorry guys completely disagree !!
If you understand Mongolian banks, who the players are, linkages to individuals, government and a country that has been starved of FDI for years you would understand international lenders would make significantly more sense.
There are several other higher value projects in Mongolia currently stuck in terms of local investment from the banks. It would far smarter to get Matad on to the radar of international lenders, or we could be here two to three years before any local funding potentially arrives.
MON1 that is an absolute fact and probably the most important matter facing Matad at present.
I was in Mongolia twice in October and listened to various rumors about the performance of the company of late. I hope the SP does at least stabilize to provide a foundation for better longer term returns.
At the moment as an oil exploration company with a find the markets are not exactly turned on to this summers progress !!
I think the Matad management may well be too busy for a significant period to come.
I understand it’s the local Aimag who the issue lies with and relates to both water and refuse permits.
What has happened here is not unusual, but avoidable. What I would like to see from a transparency perspective is did Matad understand these risks in January of this year, and what did they do to mitigate the risks. This would indicate to me if the Matad management are negligent.
If you do not understand risk management in Mongolia and likely impacts, the result is what shareholders are stuck with at the present. All completely unavoidable.
In London presently, but what I can say is the weather in Mongolia is better than it is here. It’s bloody freezing.
As far as I know the drilling news is all still positive from what I hear.
Mike and the guys will be having a busy period so best to let them get on with it. Mobilization and logistics attached to immigration and MRPAM will mean this is Matad’s busiest period so when they are ready to disclose through an RNS I feel sure they will.
Just my view !!
Hoofy
Let’s see if it’s bullsh-t or if you are right buddy.
Aspects of business can take longer than perhaps you may be used to in the United Kingdom.
However that does not mean all is not well especially if you understand doing business in Mongolia.
I am sure the Matad guys will be working hard on behalf of all of us to deliver the best year in the companies history. 2019 for all invested should be as good as its likely to get.
Snow today but once the drilling contractors are announced there should not be much in the way of the company moving forward quickly.
I am sure Matad will have the drilling contractors approved and will make their decision known shortly.
The guys have last years experiences to draw on, so I believe with nail it this year.
Good news comes to those who wait I believe !!
The Matad story let’s hope comes true in 2019, as I want to attend Manro’s £1 party !!
Weather is great. Onwards !!!
Bucc
As I understand it and I may be wrong, what you are referring to is Soviet satellite technology.
Again I may be wrong but as I understand it the Soviet Union had two of these satellites prior to the break up of the country. When this happened one of the satellites fell into the hands of the Ukraine. There is an institute in the Ukraine that uses this technology still in the pursuit of oil exploration.
I know this as the institute came to me in Mongolia eight years ago when a company I was with, was helping an owner of a block with their investment and execution strategy. We deemed then the technology unreliable after we had this reviewed back in London, and as a consequence the block was sold to the Chinese.
I may be wrong and I must admit at the time of the presentation I was impressed. However if it was as good as people say it is, then everyone would be using it. Even the Mongolian government knew about this technology at the time.
I am therefore more than happy Matad continue in terms of exploration to use tested methods, and people with experience and a history of delivery.
Just my view.
Mike31
I also agree perhaps the WH estimates were a little to rosy, which in turn raised hopes beyond which were truly attainable. By indicating Shell and the likes of Mackenzie viewed the well holding potential must of had some substance attached, but it's always the COS as an investor that gets my attention, and not speculation and hype.
On the plus side Matad successfully executed the well late into the year, which proved technically the team can deliver.
Hopefully if they get much of the work done in terms of appointing a drilling contractor for block xx, manage immigration and MRPAM, they should be well positioned to get moving late March 2019.
Fundy.
The rig is approaching 30 years old, so I am sure Sinopec will keep it moving along.
As for the weather, trust me this is not cold. To someone from the UK, I agree these numbers most seem hard to fathom. For people used to these regions this is just a walk in the park.
Trust me when it gets cold I will let you know buddy.
Weather in UB absolutely fine.
Not sure what you guys are looking at on the internet.
Generally if we start to lose hydraulic hoses to cold, that happens around Jan / Feb.
A very mild period for this time of year.