Matra Petroleum Share Discussion Threads

[beggarman] 08/6/2017 11:29

There are two short term issues which are affecting the share price, one is production and the other is financing.

Financing

They started the year with $1.5m in the bank, they drilled three new wells in the first quarter and posted a loss of $1.3m. They started quarter two with $226,000 in the bank which was supplemented by the $4.8m raised by the placing in April. They plan to drill eight wells in quarter two at a cost of £300,000 per well. which comes to $2.4m, this would increase the Development/G&A costs for Q2 by $1.5m to $3.4m. If there is no significant increase in revenue during Q2 the cash at bank could be down to $2.25m going into quarter three.

They have two choices in Q3, do no more development and sit tight and wait for the production from the new wells to feed through to the bottom line or re-finance the current loans to reduce the interest payments and take the pressure off the cash flow. They could place more shares but as the share price is low already, this would further dilute the company and the share price would fall further. The fact the business is now listed provides a good opportunity to re-finance as the lender can recover their money via a placing if necessary, so may lend at better than the current terms.


Production

The benefits of a production increase are that we are drilling for oil and not gas, if the eight wells drilled in Q2 were to produce an extra 300bopd that would be worth an extra $5m per year of revenue based on an oil price of $45 per barrel.

We do not know what the production figures are for the three wells drilled in Q1 but the benefits of any production increase will not have been properly felt until Q2. Likewise the Q2 wells production will show benefits in Q3.


The price of oil may become a factor if it dips into the $30 to $40 range but I recalculated the Q1 result based on an oil price of $45 and it would have added a $100,000 on to the net loss. It's possible to out run any oil price deterioration by ramping up production, so the preferred approach would be to keep drilling and re-finance the debt. This would improve the company's financial performance and revive the share price.

[doxford] 07/6/2017 17:34

Oil Oil and more Oil is the only hope here. The 6000 bopd has to come out of the Russian hat now or we shall flounder into abject obscurity.

[nedhammers1] 07/6/2017 17:06

Pap and Rodders, that was one of the main reason I sold, I don't see what the small investors have got to do with keeping the price down, it's the price of oil and current trend! All IMHO

[papillon] 07/6/2017 15:52

I think it likely they want to be shot of the small UK shareholders, Rodney. However I don't see the MTA share price then shooting up, not with the way the oil price is going!! It's down heavily today! WTI currently down 4.23% today at US$46.15 per bbl.

If the WTI price stays weak then so will the MTA share price In fact a weak oil price for any length of time could be fatal for MTA bearing in mind it's debt position. Shares of oil producers and explorers are best avoided at the moment.

[beggarman] 07/6/2017 14:06

UEN has consolidated at 20 to 1, the share price is in the £1.30's or 6p in old money. I can't see them making much of a capital gain from there.

[rodneyfoster] 07/6/2017 14:03

Papillon We go long way back in our various guises.Do you agree that this will eventually shoot back up once have weeded out lot of small holders .They really cannot have relisted for this

[papillon] 07/6/2017 13:29

The super MTA bulls, calmtrader & budgetbond, appear to have deserted the MTA bb in favour of the UEN one, Rodney! I wonder why?!

[rodneyfoster] 07/6/2017 12:48

Even at these prices near on 30% below relist or a mere 75% down on old delist price no one buying .Looking grim and whole scenario since these folk got involved could not be made up .Where are the ' it's cheap as chips brigade and I am buying ' brigade .

[beggarman] 05/6/2017 16:10

Same as last week, there are some big buyers around but a small sell sends the share price into a tail spin.

[rodneyfoster] 05/6/2017 15:21

What do you make of that 30k ask @7

[beggarman] 05/6/2017 15:02

Looks like 5sek by Friday!

[beggarman] 05/6/2017 14:55

It's important that these new wells are productive then, it must be critical to reach 1,000 boepd to offset any drop in oil price.

[rodneyfoster] 05/6/2017 14:54

The 30k on the ask @7 doesn't make sense with share price today But that's par for this share

[nedhammers1] 05/6/2017 14:20

I think that the oil price will not bode well for Matra. I read an article in today's FT that Russia will increase output which will drive the price down further, as they do not think the current CAP is not affecting the shale producers in the USA

[doxford] 03/6/2017 12:22

It's not so bad when they award themselves a megga salary if they are actually adding something to the shareholder value. A lot of aim companies seem to raise funds purely for the benefit of the BOD and their cronies. If this particular gang ever get to the 6000 bopd that they spout about then some of their sins may be forgiven. Until then the track record and the self made payments from our funds speak volumes. They have a lot to make up imho of course.

[papillon] 02/6/2017 22:20

PI's can be very strange animals, especially those on the lse bb's. I was in MAGP when, during 2012, it went from 0.5p at the start of 2012 and momentarily went just over 5p near the end of 2012. Unfortunately I saw only part of that 10 fold rise, but I made a bit of money out of MAGP. I remember at the time when the share price hit 5p the bulls (ramping away!) were talking about meeting up for a party when the share price reached 10p! That happy event was expected within the next few months; ie before the end of 2012, or early in 2013. However that 5p was the top for MAGP and it's been downhill ever since for the share price IT's NOW JUST 0.1p and the original holders have been severely diluted!

There's been a call for replacing the BoD. Yet even now on the lse MAGP bb the majority of the posters still have faith in Rita, the CEO, even though the share price performance has been dire since it listed! She has been CEO since MAGP listed on AIM!

PS. Rita has made a lot of money from MAGP via her rather large salary.

[rodneyfoster] 01/6/2017 17:31

Think they filled that 25k order

[beggarman] 01/6/2017 16:57

1.4% rise today.

[beggarman] 01/6/2017 16:06

I haven't got one, just seems strange.

[rodneyfoster] 01/6/2017 15:12

What explanation then ?

[beggarman] 01/6/2017 14:58

There have been three sells today total 9,401 the rest were buys. A 1,000 share buy has gone through and has wiped out all the days losses. It does not make a lot of sense.

[rodneyfoster] 01/6/2017 14:25

Beggarman Are you sure they are all buys?

[nedhammers1] 01/6/2017 12:48

Lol Rodders my son, I will keep an eye on these boards .....

[rodneyfoster] 01/6/2017 12:46

Calm / budget Presume you are hovering up all these shares n'est ce pas ?