The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Obviously Farm Out news leaked in the Upstream publication, are Chinese drilling workers talking too?
The Chinese would obviously be extremely interested in these well results and Sinopec is a state owned company!
Probably have a direct line to Beijing from site.
Articles in Downstream about Farm Out should be taken very seriously, particularly in light of disclosures already made by company. Not the kind of publication for idle rumors, market may be taken by surprise on this one!
Good catch MP and a very exciting story mate!
At least someone is out in the press promoting PM's prospects, albeit anonymously.
Fox would be a prime target and a farm-in could happen anytime. Recall Tugrug basin already has a proven petroleum system.
Should be into the potential turbidites at Snow Leopard this week, very exciting.
Manro,
With all due respect, M.Buck took over as CEO about 7 months ago and not only have communications not improved, they've gotten worse, Exhibit A, Spud Announcement! I take your point that Mike is honest, capable and working hard on our behalf, but the communications shortcomings remain and that is undeniable. This is concerning as we may get an RNS soon reporting shows and what if that one is fumbled too?
Obviously something needs to change and quickly. Are we truly sitting on one of the greatest onshore frontier exploration opportunities left in the world? If the answer is yes, then the PR/communications effort needs serious work, else our shares wouldn't be at 8.75p. I think the shortcomings begin and end with their PR company FTI and they have to account for that. You are correct that Mike should be able to get on with finding oil, but he needs a motivated and able PR effort.
Maybe it's time for Matad to make a change with FTI as most RNS's generate more questions than answers and negatively impact the share price. Our shares at 8.75p represent the totality of severe shortcomings in communicating with shareholders.
Message to M.Buck and the boys: Your communication strategy where RNS's are concerned isn't working! Remember the definition of insanity is doing the same thing over and over while expecting a different result.
While I have almost total confidence from an operational/exploration standpoint, investor communications have been a disaster. The latter has yielded the worst stock performance of any explorer post spud announcement I can recall.
Sharpen your pencils, take communications seriously and make a change!
As always, I will try to present a balanced view, but I have become increasingly frustrated by VERY poor aspects of Matad's Investor Relations.
First the positive. M.Buck's LSE interview is excellent and he does an excellent job of explaining the most recent placement and the prize we are here for. If you haven't seen it, I highly recommend taking some time to watch. http://www.lse.co.uk/media/exclusive-petro-metad-go-for-broke-with-6-well-fully-funded-programme.html
I would give M.Buck an "A" grade for these interviews.
Now the negative. On July 10, Matad announced spud with no fanfare in a very brief announcement. Why? Shareholders have been waiting for months and years from this, why not go the extra mile with some video and pictures so we can see what we have invested in?
Worse still, the company said in that RNS and I quote: "The company will make a further announcement on completion of drilling operations." How else are we to take this than we will only get an RNS once well has been TD'd? Now, we go through the sloppy process of unofficial "replies" from FTI and M.Buck saying they will announce price sensitive information.Confusing! Certainly much of this selling can be attributed to yet another communications fumble and a lost opportunity to energize shareholders.
And how long have the company been talking about the "Block XX rig tender.?" Time to F or walk, don;t you think?
I give Matad's communications effort a D- and ask the company evaluate this process. Is management aware the stock has traded down 4 of the last 5 RNS's? I would also add that this drilling campaign was probably worthy of additional media interviews on Bloomberg or CNBC, yet perhaps there was a lack of effort from a PR standpoint.
To close out, this director sale is irrelevant to the company operationally, as these disclosure's are hers and hers alone.
I continue to accumulate shares below 9p and see Matad as by far the most exciting exploration company on the AIM.
Again, the shortcoming and any subsequent allegations begin and end with her. May well result in resignation from BOD, as this has become a real, but irrelevant distraction. I doubt capital raise process began in April, these things happen much faster than that. And MATD has been a very clean company where compliance is concerned for many years,
This is exactly right, late sale report is 100% the responsibility of the reporting person. The consequences will likewise be 100% hers and have no impact on MATD operations.
Fundamentally, MATD have started the most consequential exploration program in Mongolia's history, where they are exploring perhaps the last global frontier for large conventional onshore hydrocarbons. Those selling here are either panicked or poorly informed.
I'll start with criticisms:
Were MATD trying to use as few words possible for Spud announcement? Good gracious that was boring! Where was the enthusiasm? Would it be too much for some pictures of well site and rig?
M.Buck needs to be much more clear on prospect for drill reports! Why won't they provide reports as they hit their owns targets that they themselves have Identified? Unacceptable for one report at TD and a departure from industry standard.
As for M.Buck saying he will improve communications from prior management, well, he has been CEO for 9 months now! Where is the improvement?
Will M.Buck only market the company around capital raises? Gives one the feeling of being used and abused.
Now for the company's bright future
No other AIM company will drill 6 wells that are fully funded within the next year, which are mostly big, onshore and cheap to drill.
Director failing to file share sale is irrelevant to the operations of the company, it is the directors responsibility alone and I am sure there will be fines associated she will have to pay.
While I wasn't a fan of financing, if any (or multiple) of the six drills come in, we won't see another financing for some time as farm-in would be all but assured at a hefty valuation.
$50M GBP market cap obscenely cheap in light of $850M (mid case NPV) worth of drills within next 6 months.
Wring your hands all you want, reality will soon take over and this stock will be much higher.
Yesterday no doubt was the bottom of this move, significant reversal in both volume and price. Now everyone plays catch-up as we have a FULL WEEK before M.Buck's investor presentations, media interviews and institutional investor meetings, not to mention SPUD!
Few people are positioned for this and many got shaken out in artificial decline, with forward selling following financing. This is very good news, as no one in junior oil exploration wants to miss investing in the last frontier. Stock will fly past 10p today, expect 12-16p by next Friday.
The next 5-8 trading days may prove the most consequential since the share price explosion last year. Load up gents, the Bulls have the Bears on the run!
Fundy, Are you posting from a mental institution?
I don't need your bullish BS to support your day trade, I understand the facts very well thank you very much.
Recall I was the one buying below 9p when you said it was going to 8? And so much other spectacular BS!
Punters wait around for years for Matad to drill a well, let alone four and they're scurrying like roaches when the light switches on.
Next week, spud, investor presentation, analyst presentation, investor meetings and who thinks the stock is going to go down?
No, not really.
It seems the punters have bought into the false narrative that Matad have a 20% COS, predicated solely on the "success" or failure of Snow Leopard. This is either a highly ignorant or biased view, allow me to explain.
Shares of Matad have always represented an option, on what is perhaps the last onshore frontier in the world. This option has become more valuable as it's basins and drilling targets have been matured with significant funds invested. While I was not an advocate of the last raise, the dilution is quite minimal in the grand scheme of things, especially if that dilution is recouped via a more advantageous farm-in.
But, to get back to the original point, why isn't Matad a 1 in 5'er as some would have you believe? The reality is that there are many ways you can win here, with the value proposition being 5-10% downside and 10x upside. Does that sound like a 1 in 5'er to you? Let's examine all the ways Matad shares could be a multi-bagger:
Snow Leopard commercial strike, shares go to 50-70p
Snow Leopard technical success via shows and gas kicks, shares to 30-40p
Farm-in to Snow Leopard, pre or post drilling, add another 10-20p
Wild Horse commercial or technical strike, shares to 40p-1+ Sterling
Farm-in to Wild Horse +++
Block XX strike, Block XX farm-in
Multiple strikes, multiple farm-in's, pre-spud farm-in, Hello?
I find the notion that $18M was invested in Matad solely for a pre-spud run-up into Snow Leopard to likewise be absurd, as few would sell shares ahead of the largest onshore spud in the world, that being Wild Horse?
But, each to their own, the market has a way of snatching shares from the hands of the ignorant and weak at the bottom, which is unfortunate but purely Darwinian.