Matra Petroleum Share Discussion Threads

[budgetbond] 14/11/2016 16:56

calm, what are your thoughts on the likely consolidation?

[budgetbond] 14/11/2016 15:16

It's an interesting one - the lower the consolidation, the higher the returns for the current shareholders...

[beggarman] 14/11/2016 14:11

budget - I was looking at the situation from two angles, firstly by bringing the total shares in circulation below 100m it provides plenty of scope for the future to either raise more funds via a placing or make an all-share acquisition. Secondly, it gives the company the opportunity to list with a high share price, this will make the business more attractive to new investors when getting the placing away.

It depends on which market they choose to list, are they going to list on First North or as a small cap on the main market. Obviously, if they merged with Dome they could use their First North listing and change the name.

[beggarman] 14/11/2016 14:02

Ted - 30th November! They may just take the fine with everything that's going on.

[supertedsmith] 14/11/2016 13:36

Beggarman

Whats cut off date for AGM
31nov?

[budgetbond] 14/11/2016 13:35

beggar, I dont have a view on what the consolidation could be but interested in your rationale for 100:1?

[beggarman] 14/11/2016 13:25

budget - You have to look past the current problems, if they were doing well they probably wouldn't want to merge. Matra could merge with them without having to raise finance and there are good synergies in north Texas.

[budgetbond] 14/11/2016 12:24

Dome Energy is having a few problems - new CFO in September 2016, then a fine in October 2016 for breaching disclosure obligation rules in 2016, and now an EGM in December 2016 to issue more shares. Plus a drop in the share price from 5.5SEK to 1.5SEK in the last 12 months

Doesn't paint a great picture

[supertedsmith] 14/11/2016 11:08

Budget - thank you anyway for link
here is what it contains folks and it's Budget who found it

Dome Energy summons its shareholders to an extra ordinary shareholders meeting on December 8, 2016

Dome Energy AB (herein after "Dome" and/or "the Company") today announces that the Board of Dome, domiciled in Stockholm, Sweden, hereby summons its shareholders to an Extra Ordinary Shareholders Meeting at 17.00 hours on December 8, 2016, in Stockholm.

The purpose is to adopt a revision of the company's bylaws and to give the board a mandate to issue new shares. The summons can be found on Dome's web site www.domeenergy.com.

[supertedsmith] 14/11/2016 11:06

I thought you meant EGM matra

[beggarman] 14/11/2016 10:32

Ted - Have a look under press releases.

hxxp://www.di.se/stockwatch/commodity-quest/overview/

[beggarman] 14/11/2016 10:29

budget - Dome is currently worth around £5m and Matra USA is worth about £80m but they also need to raise fresh capital, could be £20m which would give a market cap of about £105m. There are currently 32m Dome shares in circulation but the EGM is to increase the shares in issue and I presume they will make a placing.

Suppose they consolidated the Matra plc shares at 100 to 1, that would be 21m shares. The Rovello shares would then be 42m which means Matra USA would have 63m in the new entity. The Dome shareholders would receive 6.25% of 63m, this being 4m. The placing would be 16m, giving the total number of shares in the new entity of 83m. This would give a share price of approximately £1.27 per share, they may try and list the new entity at 15sek per share.

[supertedsmith] 14/11/2016 10:20

Where's it confirmed

[budgetbond] 14/11/2016 10:11

super, no its 8 December

[supertedsmith] 14/11/2016 10:08

BudgetDid you say EGM 7 Dec ?

[budgetbond] 14/11/2016 10:04

Beggar, I think your estimate for Matra is probably about right.

Based on 2500boepd, what market cap/share price could that be?

[beggarman] 14/11/2016 10:01

budget - Dome are producing 1250 boepd but about 60% is gas, Matra should be producing about 1150 boepd but we are still awaiting the results of the latest drilling. I believe 2500 boepd to be a reasonable estimate for the joint entity.

[budgetbond] 14/11/2016 09:52

Correction - 1.5SEK = 13.1p

[budgetbond] 14/11/2016 09:51

At 1.5SEK, that equates to a share price of 8.7p ....plus Matra's production of course

With the right company structure, this could be a really interesting deal

[budgetbond] 14/11/2016 09:48

beggar, completely agree - the synergy is compelling.

Dome's share price has dropped from 5.5SEK to 1.5SEK within the last twelve months which may have created this oppportunity.

Let's assume it were to happen - what combined production output would that give the Matra Group?

[beggarman] 14/11/2016 09:29

budget - The beauty of Dome energy is that they could merge just by issuing shares and would not have to raise finance. Another advantage is that Dome has significant assets close to where Matra is drilling, they also have other assets scattered across the US which could be sold off to raise more funds.

[budgetbond] 14/11/2016 08:27

Morning all.

The more I've thought about this over the weekend, the more I'm convinced that there is more to this than just a listing. For example, if they were planning on completing an acquisition, why would they set the NewCo structure and then potentially change it following an acquisition within the next 6-12 months? I dont see them doing that, they would do it all at once. I think MB already has the finance and acquisition lined up and it will all be announced as part of the launch of NewCo.

Dome Energy has been mentioned on here before and its certainly an interesting option. The EGM on 8 December may be to announce the takeover.

[nedhammers1] 11/11/2016 14:12

To be honest there's about 3 peeps always posting on here, very negative and obviously have nothing better to do with their lives, boring sods. The truth is we have no real idea what is in the pipeline, parden the pun, but this announcement has been much more positive than anyone was lead to believe. Yes it might not turn out for the best but equally we could see some return for our written off investments. So let's see some positives shall we .....

[steviedoesit] 11/11/2016 13:43

Wise words budget bond never a truer word spoken! For some elite failure is not and option! Even if it is just pence more than delist price he will not settle til he achieved what he set out to do! The storm in starting to settle

[beggarman] 11/11/2016 13:38

budget - Your last paragraph is incorrect, the Winpro starting position has been how can we get our money out of Matra plc and we are not interested what happens to the other shareholders in the process. We were delisted so that the Eclipse deal could go through unopposed and that was Alltech recovering their investment.