RE: Re 3.5p29 Jan 2022 10:20
"Petro Matad's current plan initially proposes several production wells drilled within the existing 3D footprint, following the expected award of Petro Matad's current EL application. This covers a 307km² area over the northern part of Block XX which will enable production revenues to be fast-tracked which will enable production revenues to be fast-tracked from the development of Heron's 25+ MMbl resources estimated. Even though Mongolia is remote, drilling costs and associated facilities are low by comparison with elsewhere in the world and 3,000m exploration wells can be drilled for as little as US$ 2 to US$ 4 million each. Petro Matad is planning the concurrent acquisition of a new 250 km² 3D survey over the exploitation Licence, estimated likely to cost US$ 4-5 million, with a view to a detailed evaluation of the southern closure and location of additional near-field appraisal and exploration well locations."
From July 2020:
http://envoi.co.uk/wp-content/uploads/2020/07/P261PetroMatad(Mongolia-BlockXX)EnvoiIntroductionFlyerJune2020.pdf
10 million USD were raised on the recent placing at 3.5p so it is clear why they postponed the 3D survey. 3 Wells could be also really tight as we don't know the extra cost which may come along, but even if we are just able to get 2 wells up it would just take months to fund a further well.
People seem to discount that we are on paper a very speculative company as we live on a lifeline right now. But as soon as we get the first successful well installed, we will see a huge relief in the market and people being wanting in.
MB always said he had his reasons why to lower the placing to 3.5p because this was still a risky investment in his eyes. Maybe we should all just appreciate that we are at least above placing and this wasn't an all-out scam, prices and interest in MATD are rising and with any positive news, we have a positive catalyst for the sp.
If you compare MATD to Reconnaissance Energy Africa it is even more obvious that we are hugely undervalued. We have better infrastructure and enough buyers to sell our oil for a good margin. Our low valuation is just nuts, but MB said he had reasons so maybe this is more make or break than some of us think.
MATD has a clear path and if you are in here for a simple trade you maybe should have sold already.
FA sums all the key points up and they always fit with the official story PM has given publicly. A simple google search often gives you the information that a company tries to mediate to the public/internet. If we want to start the argument that PM is fraudulent then I hope nobody that believes that, is invested here, which seems to be the case for most of you.
As long we achieve basic revenue to fund further projects our valuation will sector-outperform hugely in the long term.
Very rough profit calculations:
800bbpd *2 (wells) *320days a year*(90$ brentprice -30$ production cost) = 30'720'000 $
Sadly I reached the char limit.
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