Matra Petroleum Share Discussion Threads

[papillon] 23/4/2017 22:17

When Barskiy took over at Western Siberian (WSR) back in 2004 it was saddled with lots of debt and the share price was languishing. One of Barskiy's first actions was to convert the debt into equity. That diluted existing shareholders, but ensured that WSR survived!

By the time WSR was taken over in 2007 the oil price was around US$100. Back in 2004 when Barskiy took over it was US$40. Barskiy grew WSR, but he needed a rising oil price.

This time round Barskiy took the helm at MATRA when the oil price was over US$100 and has saddled the company with debt. The obvious way to ensure MATRA survives is to convert expensive debt into equity. That will mean existing shareholders are diluted. To grow MATRA like WSR Barskiy will need a rising oil price.

PS. Barskiy's success with WSR got him noticed. The 3 oligarchs in charge of the TNK side of TNK-BP joint venture made him CEO. However he didn't last long in that position. The oligarchs booted him out. To be fair to Barskiy TNK and BP were at continual loggerheads. None of Barskiy's subsequent ventures have replicated his success at WSR.

[beggarman] 23/4/2017 18:53

There are only Rovelo and Forsinvest locked in, they will be around for the long term.

[rodneyfoster] 23/4/2017 18:51

Surely they will try to do something for folks with six month lock in period .

[beggarman] 23/4/2017 18:03

Rod - In the circumstances I might go as low as eight but I expect this to be lower next week. This share will not recover until the end of 2019.

[rodneyfoster] 23/4/2017 17:59

Beggarman Are you selling any price

[magpie105] 23/4/2017 17:54

Rodney if you are Ted then that is pretty sad you would change your name to continue on the board

[beggarman] 23/4/2017 17:45

Rod - I intend to sell but computershare don't currently have a facility, I will contact them in the morning to see what the situation is. If I can't sell with computershare I will transfer to TD Waterhouse but by the time all this takes place the share price will be toast. Expect all the big UK sellers to dump their shares next week.

[rodneyfoster] 23/4/2017 17:28

So why the discrepancy Small shareholders should be able to sell up this week -Are you selling up no natter what?I need .£1 then I am out

[beggarman] 23/4/2017 17:22

On the presentation of 20th February they state that the reserves are worth $235.2M or $6.41 per share and directly below this is an extract from the Pro Forma accounts showing $77.3M. I was expecting the Pro Forma accounts to show $145m as this is the figure from the independent valuation (Mark to Market). This would fit in with Vlad's statement at the EGM, that the business was worth $100m and our share price would have been around 23sek.

[rodneyfoster] 23/4/2017 17:12

Beggarman More bizarrely - Why does it contradict EGM so radically

[rodneyfoster] 23/4/2017 17:11

Lewis I said I would sell at reasonable price not at any price- subtle distinction

[beggarman] 23/4/2017 17:08

Rod - I was trying to find out if there was any comment about the P1 reserves, why are they so low? Can't find anything.

[lewis_81] 23/4/2017 16:38

It won't dilute your holding if you do what you've been saying you'll do for what seems like most of my life now..... and actually sell.

[rodneyfoster] 23/4/2017 15:50

The assessment echoes what you have been saying beggarman Debt levels and funding .Share placement will further dilute our holdings .

[beggarman] 22/4/2017 10:40

I have found the following assessment from the Erik Penser Bank. It has been translated from the original Swedish:


Penser Access: Matra Petroleum - Rolls out as fast as possible
TWO, APR 20, 2017 3:20 AM EST


Matra Petroleum is an oil company with 1P reserves of 22.9 million barrels (MMboe) of 136 licenses in northwestern Texas. Production amounts to 900 barrels a day (boepd) and the company aims to increase production to 6000 boepd. The increase in production is primarily dependent on access to finance, where the company's ambitions today are higher than the cash and unutilized credit facilities allow. We see room for a drill rig in operation in 2017 and 2018, with a capacity of 50 holes per year. This corresponds to a production increase to 1670 boepd at the end of 2018. A relatively expensive loan from Melody Finance, where the interest rate of 15% is continuously added to the debt combined with a net debt / EBITDA of 22x 2017 makes a new issue probable. Should the company receive funding for three rigs in operation this year, it could mean an EBITDA of over USDm 40 in 2019. Matra brought USDm 4.8 at the beginning of the year. The price of SEK 10 corresponds to EV / 1P of USD 4.2 per barrel, compared to the USD 8.4 per barrel section. While we see a high exchange rate potential, the issue of financing / refinancing is the main risk.
Read the full analysis:
This is a press release from Erik Penser Bankaktiebolag. Read more at www.penser.se

[beggarman] 22/4/2017 09:48

As mentioned above we are just presenting a balanced view and trying to find facts to back up actions. I would expect some posters to make positive posts and some to be on the negative side, people reading the board can make their own mind up. The board is here for people to express their opinions after all.

[lewis_81] 22/4/2017 08:38

Of course there will be a placing. Why else would they go to market.
So what?
Placing are done all the time to move the business forward, yes there will be dilution but this will be to GROW the company.

Seriously you lot are getting boring with the same record spinning CONSTANTLY.

I'll get out when "the price is right" but seriously don't see the benefit of doing what you lot are doing.

[beggarman] 22/4/2017 07:33

We are only trying to offer a balanced view. We keep hearing that the company is going to spend $5 to $10m on field development this year and also making acquisitions, the question is where is the money coming from?

The company is about to start to drill eight new wells, if they get them into production late July early August and they yield an extra 300bopd the company will have very little in the way of cash at the end of the year. That indicates another placing this year and more dilution.

[beggarman] 21/4/2017 21:21

I've actually found some positive news from the Amarillo Globe 16th April:

Intents to drill

HUTCHINSON (PANHANDLE HUTCHINSON COUNTY FLD.) PG-M International Operating,LLC, #317 C.L. Dial etal, (5973 acres) 4886’ FNL &536’ FEL, Sec 23, Blk 47, H&TC Surv, A-106, 5.5 mi NE from Borger TD 3275’, (sgd. Taylor Hickman 806-274-9517) Vertical

HUTCHINSON (PANHANDLE HUTCHINSON COUNTY FLD.) PG-M International Operating,LLC, #318 C.L. Dial etal, (5973 acres) 3708’ FNL &871’ FEL, Sec 23, Blk 47, H&TC Surv, A-106, 5.7 mi NE from Borger TD 3285’, (sgd. Taylor Hickman 806-274-9517) Vertical

HUTCHINSON (PANHANDLE HUTCHINSON COUNTY FLD.) PG-M International Operating,LLC, #319 C.L. Dial etal, (5973 acres) 2390’ FNL &346’ FWL, Sec 22, Blk 47, H&TC Surv, A-637, 5.8 mi NE from Borger TD 3260’, (sgd. Taylor Hickman 806-274-9517) Vertical

HUTCHINSON (PANHANDLE HUTCHINSON COUNTY FLD.) PG-M International Operating,LLC, #320 C.L. Dial etal, (5973 acres) 2000’ FNL &1000’ FEL, Sec 22, Blk 47, H&TC Surv, A-637, 5.9 mi NE from Borger TD 3265’, (sgd. Taylor Hickman 806-274-9517) Vertical

HUTCHINSON (PANHANDLE HUTCHINSON COUNTY FLD.) PG-M International Operating,LLC, #321 C.L. Dial etal, (5973 acres) 833’ FSL &1178’ FEL, Sec 1, Blk 1, H&GN Surv, A-50, 4.9 mi SE from Stinnett TD 3280’, (sgd. Taylor Hickman 806-274-9517) Vertical

HUTCHINSON (PANHANDLE HUTCHINSON COUNTY FLD.) PG-M International Operating,LLC, #322 C.L. Dial etal, (5973 acres) 330’ FSL &330’ FEL, Sec 1, Blk 1, H&GN Surv, A-50, 5 mi SE from Stinnett TD 3250’, (sgd. Taylor Hickman 806-274-9517) Vertical

HUTCHINSON (PANHANDLE HUTCHINSON COUNTY FLD.) PG-M International Operating,LLC, #323 C.L. Dial etal, (5973 acres) 1121’ FSL &375’ FEL, Sec 1, Blk 1, H&GN Surv, A-50, 4.9 mi SE from Stinnett TD 3285’, (sgd. Taylor Hickman 806-274-9517) Vertical

HUTCHINSON (PANHANDLE HUTCHINSON COUNTY FLD.) PG-M International Operating,LLC, #324 C.L. Dial etal, (5973 acres) 2151’ FSL &394’ FEL, Sec 1, Blk 1, H&GN Surv, A-50, 4.8 mi SE from Stinnett TD 3270’, (sgd. Taylor Hickman 806-274-9517) Vertical

[doxford] 21/4/2017 20:50

They should all go to jail.

[rodneyfoster] 21/4/2017 20:27

One of them Vlad - has already mysteriously disappeared into Matraland with his hard earned back pay -