Matra Petroleum Share Discussion Threads

[budgetbond] 08/1/2017 08:47

I have been trying to work out how Matra could have created the significant additional value in the last six months to list on the Swedish stock exchange and also convince the lender to delay the $5m payment for seven months.

In the letter from Chairman in the Scheme of Arrangement document, Maxim describes the Swedish market as 'an attractive place for small cap oil companies'. The generally accepted definition of a 'small cap' is a company worth $300m - $2bn. So even at the lowest $300m valuation, that would equate to a market cap of £225m - three times our last known market cap.

In the update from June 2016, Maxim stated that they would commence a drilling programme with the funds provided by Melody Finance. In the AGM presentation from 25 September 2015, these funds were stated to be $7m held in a dedicated account that would only be used for the development programme. The drilling programme was stated to be as below (I've added in brackets what their previous production output had been from each technique)

95 wells (20 - 50bopd)
40 workovers (5 - 10bopd)
30 recompletions (8 -12bopd)

But we know from the update in June 2016 that they drilled 4 wells and increased production by 265bopd which equates to 66bopd, above the maximum of the range they'd previously acheived from new wells.

What we dont know is exactly how much they have been able to complete from the drilling programme since June 2016 but let's assume that they've completed it and achieved the bottom end of the range for each technique:

Wells - 95 x 20 = 1900bopd
Workovers - 40 x 5 = 200bopd
Recompletions - 30 x 8 = 240bopd
Total = 2340bopd additional

Even if they've only completed half of it, that's an additional 1170bopd.
But if they've achieved the top end of the range for each technique, that's an additional 5510bopd.
However, they only needed to have drilled another 15 new wells and secured the same output as they did in June 2016 (i.e. 66bopd), then thats an additional 1000bopd.

We wont know until Thursday what their production output is but the conclusion I have drawn from my analysis is that they wont have needed to have completed much of the drilling programme to have potentially doubled production to 2000bopd. But in order to generate the significant additional cash flow to convince the lender to delay the repayment of the loan, I'm now starting to believe that the production could be even higher.

Put this production increase into the mix with a significant increase in the reserves confirmed by Per Tech in June 2016 in an environment of increasing oil prices and my view is that this could be a little bit special. IMHO of course.

Bring on Thursday.

[steviedoesit] 06/1/2017 22:36

Hasn't he still got to sort a broker out for his cdi ? To be put in place as it a certificate guy's ???

[100egs] 06/1/2017 22:29

bexman, dont worry, the major shareholders will vote this through on their own

[calmtrader] 06/1/2017 20:14

Excellent Budget

[budgetbond] 06/1/2017 19:39

I'll be there

[calmtrader] 06/1/2017 16:12

whos' going to the EGM?

[100egs] 06/1/2017 15:20

Canny lass,
if you have a nominee account, activate the corporate actions menu also the voting and information mail box, and you will receive all documentation direct to your account, i did this and got all info last friday.

[canny lass] 06/1/2017 14:39

Hi, I just received by post a communication from TD Direct Investing stating that my existing MTA shares will each be replaced by 5 new MTA CDI's from the 6th February 2017. The transfer process from this date could take up to 2 weeks to be updated on my account.

[magpie105] 06/1/2017 12:27

Thanks Ted, if you are recommending share centre then they must be squeaky clean, ha

[supertedsmith] 06/1/2017 12:21

Here is link for transfer dochttps://www.share.com/siteassets/media/global/forms/managing-investments/share_transfer.pdf

[supertedsmith] 06/1/2017 12:17

Magpie here is email
I got from then last week

Dear .....


Further to our conversation earlier today, I have spoken with our Corporate Actions department who have received information today about the planned issuance of CDIs for Matra Petroleum. The document detailed that this is subject to approval at the AGM on 12 January, with an expected effective date of 18 January. Whilst this is the effective date, the document goes on to mention that the CDIs will be issued within 14 days of this effective date, meaning we would expect them to be received by 1 February.

From the information we have received, we know we will definitely be able to hold the shares. The document detailed that the company was planning to list the shares on the Swedish stock market, although this is subject to approval. Based on this, we would expect that we would also be able to trade the shares, although we won’t know for certain until the new shares have been issued in January.

In terms of transferring the shares from Barclays, we would be able to transfer the shares either before or after the conversion to CDIs. We need you to complete our ‘transferring investments to your account’ form, and send the form to us at the address quoted on the form; whilst we are happy to accept a scanned signature, most providers will insist on receiving a ‘wet’ signature in order to proceed with the transfer. Once received, we will send the form on to Barclays to request the transfer of the shares to our management. We are then dependant on Barclays to complete this process, although we usually advise transfers can take up to 4 weeks.

Given that you understand Barclays are not able to hold CDIs, I would suggest that you contact them to confirm you will be transferring the shares to us and that you do not want them sold. I would then hope that they will be able to put a block on the shares until the transfer is completed, although you will need to check this with them.

I hope this information is useful, however if you should need anything further, please do contact us again.

Kind regards
Matt Goodall
Transfer Team Manager
phone [phone]
web www.share.com


Oxford House | Oxford Road | Aylesbury | Buckinghamshire | HP21 8SZ

[supertedsmith] 06/1/2017 12:14

MagpieShare centre very easy .You need to register .Then download transfer shares document fill it and send off .They will take care of rest

[magpie105] 06/1/2017 11:56

for anyone unable to trade the new shares (I'm with Halifax) is there an opinion on whether transfers should be made after the switch/consolidation occurs or are you trying to move the existing position? In addition, I'm starting to look into other potential brokers, sharecentre is the only one I have contacted so far altho yet to have a response. Any recommendations also for new brokers to use would be appreciated. Thanks

[brian boru] 06/1/2017 11:50

thanks guys...............better than a poke in the eye with a blunt stick after years of misery!

[beggarman] 06/1/2017 11:31

Brian - It would be £2.06 multiplied by 36.6m shares, around £75m.

[doxford] 06/1/2017 10:26

Brian
no idea mate, not enough info on anything. As yet it's all speculation but not long to wait now all being well.

[brian boru] 06/1/2017 10:21

dox, what would the market cap be at £2.06p per share?
tia

[budgetbond] 06/1/2017 10:17

Development plan quoted in Sept 15 update was to drill 95 wells and complete 40 workovers, 30 recompletions and create 28 deeper wells once the oil price got above $50

[doxford] 06/1/2017 08:53

If the delist price was 1.03p then 500,000 old shares had an approx value of £5150.
500000 old shares x 5 = 2.5m new shares. 2.5 divided by 1000 = 2500 new shares. A value of 206p per new share would put us back at the square one delist value of three years ago. It will be interesting to see what transpires here.

[harry136] 05/1/2017 19:31

conformation from HL same as AYIMan they say i have to do nothing, after all there is nothing to do until the vote is passed or not

[beggarman] 05/1/2017 19:27

budget - The way I am reading the consolidation it is in two phases, next week if the motions are carried we should have our current shareholding multiplied by 5 and our shareholding will remain this way until the shares are listed in Stockholm when they will be divided by 1000. Could this be what Hargreaves Lansdowne are referring to.

[budgetbond] 05/1/2017 18:40

doxford, the consolidation is 1000:1 (it's on Page 16 of the document) and beggarman calculated a week or so ago that based on the last known balance sheet, it would take us back to the delist price.

But - that doesn't account for the production increase since June 16 (which I think could be 500-1000 bopd) and the WTI price increase (30% higher). Whatever this equates to will be our upside.

Hargreaves Lansdown has told me after the share conversion that I own 10's millions of shares...for anyone else out there with a HL account, they've made a mistake with the conversion! As much as I'd like to, I dont own more than Maxim :)

[doxford] 05/1/2017 16:53

A lot now hinges on the next dose of production figures as very little has been given out in recent times. The five for one share offer will no doubt be followed up with a massive consolidation or share issue and the burning question for all of us is what value will we finish up with? What for instance would half a million old shares be worth after the mixer stops? Can't wait to find out.

[budgetbond] 05/1/2017 14:13

Geordy, probably worth giving Computershare a call to see how the share process will work, I've not seen anything at all on that