There are REAL RISKS here9 Mar 2025 00:36
There are real risks here.
The rampers knows, so whenever someone raises concerns or reference the facts, they will immediately get jumped on and bullied.
Uncertainties:
If HERON doesn't meet expectations, by that I mean if there is no improvement from 200bopd or worse the flow rate drops off and H2 cannot be fixed, then that would put the share price into jeopardy
If the above becomes reality, this would mean that there are little to no foreseeable revenue to cover for the upcoming Borzon commitment of £1million over 2 years / or £14.9 million over 8 years. Whichever way you look at it, the expenditures far exceeds any potential revenue streams.
Hence, the ramping group are trying to intimidate and silence anyone that raises these concerns. They are constantly bombarding the board with unrealistic scenarios in attempt to bury factual/meaningful posts.
FACT is that H1 is producing 200bopd (from last update). Both H1 and H2 are being remedied, and being remedied doesn't mean that it will guarantee a boost in production. It just means that the company is at this stage doing all they can to try and save the wells.
Mentioning the risk here is totally acceptable. There's the possibility that H1/H2 gets fixed, but there is also the possibility that they don't. It's a fair comment and assessment of the situation.
I also think it is fair to say MB have over commited by sighing the Borzon Block when there are so many uncertainties looming. The export processes and signature still needs to be signed.
For a small company like Matad and so many uncertainties, including:
- uncertainty of H1/H2 well (can they be fixed?)
- uncertainty of export signature required to sell oil (can oil be sold?
- the reliant on Petrol China storage ( to store any oil pumped)
- the uncertainty of future funding (for the Company to stay afloat and to fund future operations)
I think it is safe to say Matad has little to no bargaining power. This means that there will unlikely be any soft loans or JV as suggested by the ramping crew.
At the end of the day, if the rampers are confident in their investments, then there is no need to get agitated like they have shown. It's because deep down the truth hurts. They all waiting for a chance to exit this share.
Rather than bullying people for posting facts, how about the rampers let it play out, if they really believe in a success case, and that goes for Mike Buck too, prove me wrong on next RNS, if they can that is.
The reality is Mata have spent 10 years plus in Mongolia. £174 million spent. £0 revenue into the Matad bank. JV talks have been ongoing for years and they are yet to reach an agreement.
As always, do your own research.
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