Member Info for Unnd

TBT - i am not being disingenuous. As you also state no one knows what the flow rate will be.

And yet there we have Abzzba in the next post stating 5p by June and in other posts stating an easy fix to H! and 500bopd. They are the posters that are being disingenuous, trying to dupe people into buying when nothing is certain.

I am invested at 1.9p but I can see the positives and negatives. For me it is not worth selling at 1.3p and buying at possibly 1p this stage, but I may decide to buy more if the company answers the unknowns and the answers are positive.

It is madness to only 'see' the positives and disingenuous to encourage others to buy just on the positives without stating both sides.

I am happy to have an adult discussion on the unknows and the possibilities of a placing at ?p rather than resort to all the name calling which appears to have started when you joined the BB.

WOS - with respect the post at 6.08 does not answer the questions, however it does appear to me to be a lot of verbal diarrhea without any substance or base in fact at this time.

TBT- i see that you have not responded to the points as usual, but that you have just tried to deflect again as usual.

I am aware, as most posters are, that the Company cannot answer such questions as it would be commercially sensitive and insider trading - pretty basic really and something that you should be aware of for your future trading - hope that helps you going forward.

Do you have any constructive points to discuss whilst we await MATD answering the questions via an RNS?

The baseless ramping and childish name calling on here reminds me of the COPL board, on which mindless rampers tried to get posters banned for trying to discuss the pro's and con's of the company.

Talk of billions of barrells of oil, MG funding and JV with PC mean nothing to the here and now of MATD.

The simple facts are that no poster on here knows:-

1. If Heron 1 production can be increased or if it can by how much and at what time and cost.

2. If Heron 2 is commercial over 12 months and if production can be increased. If so at what time and cost.

3. Gobi - the company has no clues at this stage if it is a producer or abandoned.

4. Renewable energy - we have scant details about this and no guidance on time, cost or returns.

5. New Blocks - we have a commitment to spend around $1m over 2 years and possibly up to $15m over 8 years.

At best cash will be $2.5m and the end of Q1/25 if the Cooperation Agreement is signed, the Export licence obtained, oil transported to China and sold. We do not know the payment terms - 7days/28days?

The CEO will decide, not BB heroes, if $2.5m is enough to resolve H1 and H2, investigate Gobi, fund renewables and enter into a 2025 drilling campaign. It is unlikely that DQE will give extended credit terms given the cash position and current issues at H1 and H2. The MG will not provide funding - they have the PSC's in place for private companies to provide the finance. The oil belongs to Mongolia and MATD have a contract to extract and sell the oil and share in the profit after cost recovery.

All facts point to a placing which is why the market is sat on the sidelines until the placing price is known and possibly the shares forward sold.

My guess, for discussion, is a $5m placing at 1p to resolve H1, H2, new blocks and a 4 drill 2025 drill campaign.

The future may be bright but the here and now is 1p.

The Progressive Research note stated that the cash position at the end of Q4/24 was estimated at $2.5m.

Therefore I estimate the cash position at the end of Q1/25 to be around $2.77m based on:-

1. Wages,salaries and G&A $300k/month (2023 accounts) = $900k

2. Oil sales (subject to CA being signed, export licence obtained and 28 day payment terms) = 250 x 130days x $48 = $1.56m (march production will not be paid until end of April. $48/barrel is maximum recovery under the PSC at $74 Brent and subject to full audit and agreement with MG on 'Cost Oil' recovery at 40% of net revenue).

3. PC payment for transport processing and sale = 32,500 barrels x $12 (Progressive estimate) = $390k

From the $2.77m MATD have to :-

1. Resolve the issues at H1 to hopefully increase production from 200-300 bopd

2. Resolve the issues at H2 (and put into production) to hopefully maintain or increase production from 30 bopd

3. Progress the renewables section

4. Fund the 2025 drilling campaign (4 wells?)

The CEO therefore has to decide if $2.77m is sufficient for the above or if a raise is necessary prior to or following resolution of items 1 & 2.

Adw198 - agreed that the renewables cost needs to be factored in but hopefully it is not a significant amount.

Also agree that payment is unlikely this year and is subject to the Cooperation Agreement being signed and payment terms agreed e.g 14/28days.

My conservative take on possible cash position at end of winter shutdown on 01/04/24.

1. Cash at 30/06/24 $1.9m + raise $9.4m = $11.3m

2. Costs H1 $2.5m, H2 $2m, Gobi $1.5m, Wages Salaries & G&A $2.7m = $8.7m

3. H1 producing 250 bopd x 150days x $49/barrel = $1.83m

4. Cash remaining = $11.3 - $8.7 + $1.83 = $4.43m

5. Unknowns = cost/barrel to pay PC = 37,500 x $X/barrel = ??? to be deducted from the $4.43m

The above is approximate based on the PSC and what we know so far.

IMHO we should conservatively have $4m, therefore we need to either:-

1. Increase production

2. Reach agreement with DQE on deferred payment terms for 2025 drilling programme

3. Obtain a soft loan from Petrovic

4. Raise funds by RBL or shareholders.

5. reach a JV with PC.

Doc83 - that is the big unknown at present until the Cooperation Agreement details are disclosed.

The market does not like uncertainty which is why it needs to be agreed asap.

Maybe others can give guidance on this.

What I would say is that MG will have an idea of what PC should pay as it will be similar to the costs recovered under the PSC on other blocks.

For clarity the terms of the PSC are:-

1. A. 5% Royalty is paid to the MG based on gross revenue

2. Matd can then claim up to 40% of the remaining revenue (Petroleum Cost) until all development costs and current production costs are recovered subject to agreement and audit by MG.

3. The remaining revenue (Production oil) is shared with the MG 60:40 in favour of Matd.

The above equates to Matd recovering approximately 73% of the revenue from each barrel in the early stages until all back costs are recovered and not 100% as some have suggested.

Based on the oil being sold in China at a 5%-10% discount to Brent (currently $74/barrel) then Matd will receive approx. $50/barrel in revenue gross.

MATD then have to pay PC for transporting processing exporting and selling the oil.

In addition MATD have ongoing wages salaries and G&A which equate to $300k per month (taken from 2023 accounts).

Hope the above clarifies the cashflow position.

There appears to be some confusion on the terms of the PSC.

For clarity the terms of the PSC are:-

1. A. 5% Royalty is paid to the MG based on gross revenue

2. Matd can then claim up to 40% of the remaining revenue (Petroleum Cost)until all development costs and current production costs are recovered.

3. The remaining revenue (Production oil) is shared with the MG 60:40 in favour of Matd.

The above equates to Matd recovering 73% of the revenue from each barrel in the early stages until all back costs are recovered and not 100% as some have suggested.

Based on the oil being sold in China at a 5%-10% discount to Brent (currently $74/barrel) then Matd will receive approx. $50/barrel in revenue.

Hope the above helps in valuaing the revenue to MATD over the winter period.

ADW198 - The RNS on 22/10/24 stated that the Agreement 'includes provision for the offloading, measurement, processing, export and sale of the Block XX production'.

Good to have a sensible discussion with you.

TBT - the $50 revenue per barrel is inclusive of progressively recovering back costs - see my earlier calculation.

TBT - if Heron 1 produces 300bopd as guided by MATD then the revenue to MATD over the winter shut down period is 300 x 150days x $50 (Brent at $74) = $2.25m. IF H2 comes on stream then obviously double. It will go up or down dependant on the Brent price.

ADW198 - there is no seperate agreement to sell oil. The Cooperation Agreement with PC is for the offloading, measurement, processing, export and sale of Block XX production. The T&C's of that Agreement have been agreed with the exception of the Admin fee payable to PC. Once that is agreed (not a deal breaker given the relationship between all parties) it will be signed albeit it will take some time for PC to process in China. In the meantime PM,PC and MRPAN have verbally agreed to proceed with production - verified by PC taking the fluids without the signed Cooperation Agreement in place. That's my understanding anyway.

I am totally frustrated, as others, by the action of the SP and the constant selling following an RNS irrespective of it being good, bad or neutral.

I understand that it is difficult for the market to put a value on Matd without knowing actual flow rates from H1 and H2 and in particular in the absence of a signed Cooperation Agreement with PC, albeit the terms and conditions are agreed with the exception of an administration fee to PC,which to my mind is not a deal breaker.

However we do know that Matd estimate the recoverable oil to be between 33m barrels and 60m barrels dependant on the use of radial and horizontal drilling. At $5/barrel that is a minimum of $165m subject to Matd showing the market that they can get the oil out of the ground at a profit.

Unfortunately we do not know what the production costs are and therefore what the net back per barrel is likely to be in the future.

What we do know from the PSC is that a 5% Royalty is paid to the MG based on gross revenue and that Matd can claim up to 40% of the remaining revenue (Petroleum Cost)until all development costs are recovered, and that the remaining Production oil revenue is shared 60:40 in favour of Matd.

The above facts from the PSC equates to Matd recovering 73% of the revenue from each barrel in the early stages.

Based on the oil being sold in China at a 5%-10% discount to Brent (currently $74/barrel) then Matd will receive approx. $50/barrel in revenue.

The Company has guided that each well will initially be put on production at 300bopd which will be $15,000/day revenue to Matd.

Hope the above clarifies some things but it is still with the caveat that flow rates are to be proven.

Thorn - totally agree it seems clear to me.

Production will continue whilst the Admin Fee is to be agreed and the Cooperation Agreement is to be executed by PC following which it will be ratified by MG.

All other T&C's are agreed.

The Admin Fee will also have to be ratified by the MG as it will form part of the Cost Oil when calculating the split of the revenue with Matd.

Given that MG and PC have a relationship on other blocks then it is a pragmatic stance by all parties to allow production to continue. All parties benefit.

The oil will be sold in China at a 5%-10% discount to Brent.

As per my earlier post the expected split will be around 35:65 in favour of Matd.

Development and production costs are progressively recovered in the above split.

The company has guided that each well will be put on production at 300bopd in line with good reservoir management, therefore we will be producing either 300 bopd or 600 bopd (if Heron 2 comes on stream) throughout the winter shut down period.

Matd will pay a royalty of 5% and the remainder (95%) is then split between cost oil and profit oil. Cost oil is up to 40% (once costs have been ratified by MG) and the profit oil (60%) is shared on a sliding scale between Matd and MG.

In the early production years I would anticipate a 35:65 split in favour of Matd.

Hope the above now clarifies the position for some.

It would appear that some people have still not reviewed the presentation on the website.

MB stated that the refinery is due to be completed in 2027 but that it does have a tendency to slip back.

In accordance with the 2023 annual report (on PM Website) Mike Buck earned $559k in pay and benefits in 2023.

ADW198 - it would appear that some people are not capable of adult debate and therefore they have to attack the messenger and not the message.

The facts are all in the latest presentation which again some people are not capable of understanding.

Matd clearly stated the completed cost of each Heron well is $4m - not Heron 1

I am all for being positive about your investment but that should not mean that facts are distorted or exagerated.

Lets hope that Heron 1 and possibly Heron 2 are on production before the winter shutdown to ease pressure on cashflow prior to the 2025 drilling season.