Matra Petroleum Share Discussion Threads

[beggarman] 22/6/2017 15:09

43,000 on the ask at 5.9sek, can't see that going through.

[beggarman] 22/6/2017 12:56

Now up to 15,000!

[beggarman] 22/6/2017 12:37

A new broker has emerged today (Carnegie Investment Bank AB) and they have bought 7,543 shares so far. Maybe somebody knows something.

Nordnet Bank

hxxps://www.nordnet.dk/mux/web/marknaden/aktiehemsidan/index.html?identifier=136267&marketid=11

[nedhammers1] 22/6/2017 10:53

Cheers Rodders ;-)

[rodneyfoster] 21/6/2017 19:02

MacemanCorrection Planned moment they got involved

[maceman] 21/6/2017 17:24

They have a plan, all this was planned over three years ago. The plan doesn't involve any prosperity to us let's face it. Perhaps the wisest fellows got out as soon as they could.

[beggarman] 21/6/2017 15:33

The problem is the gross profit was $650,000 in Q1 and the G&A costs were $750,000 even if the interest costs were reduced to $650,000 there would be a $750,000 loss.
I would expect the gross profit to increase to $810,000 in Q2 because of the extra 80bopd but based on the above there would still be a $590,000 loss.

The problem is the current balance sheet, imagine if they negotiated a $50m loan at 6% and cleared off the current loans and had $5m of extra working capital, problem solved.
The trouble is with the oil & gas assets shown as $77m and loans of $45m the net worth is $32m and a bank would be reluctant to lend an extra $5m, it would also impact on the share price as the net worth would reduce to $27m. If the oil & gas assets were shown in the next balance sheet as $145m as per last years valuation, the share price would rocket and the effect of an increased loan would be negligible.

[rodneyfoster] 21/6/2017 15:11

It's still a pretty substantial fall in quarterly Interest payments .

[beggarman] 21/6/2017 13:56

Rod,

It still doesn't work even if the whole $45m was renegotiated at 6% and I don't think 6% is that realistic. The Greenbank loan is currently 7.2% and the Melody loan is around 15%. They should try and renegotiate the loans as a matter of prudence but it alone is not the answer.

Renegotiating at 6% would reduce the quarterly loan interest from $1.2m to $650,000.

[rodneyfoster] 21/6/2017 13:43

Totally agree about numbers But having had placing at 8 literally few months ago would go down very badly to have another few months later at 5 .Need to renegotiate loan .Do not understand why not choose this option and act.Banks wound lend money with their future revenue stream

[beggarman] 21/6/2017 13:37

Rod,

The numbers just don't work, they are underfunded. They could really do with raising $2.5m,then they could continue drilling and be self funding. I think you will find the placing was at 10sek but most of the new shareholders are taking a long term view over the next three years.

[rodneyfoster] 21/6/2017 13:09

They would have no credibility if have placing at 5 considering that they have only just had a placing at 8 .

As son as saw Vlad had done a runner and left obvious that they had ,in all legality I stress, sucked out all they could .
Its the end game now .
Am sure others are negotiating exits

[beggarman] 21/6/2017 12:18

I made some calculations based on an oil price of $45 and re-financing all the debt at 6% and it would be possible to complete the current drilling program and avoid a placing but the net profit would only be around $50,000 per quarter. This would mean drilling one well every eighteen months thereafter. I am basing the results of the current drill program as yielding 300 bopd, obviously they may get lucky and yield say 500 bopd which would change things considerably.

As the situation currently stands I believe a placing is unavoidable. They could raise $1.25m by issuing 25m shares at 5sek but they need to act fast as placings are usually made at a discount to the current share price and we are rapidly closing in on 5sek.
I would expect the resulting share price to be 3.4sek.

[woodpecker25] 21/6/2017 11:28

OK, thanks Paps. We've got the point. I think most of us on here would like to get out of this, but are waiting for the dust to settle after the IPO and see if MB comes up with any credible plan going forwards. I can't honestly see why anyone would put new money into this in the current environment.

[papillon] 20/6/2017 22:31

"U.S. Oil Falls Into Bear Market Amid Worries Over Supply Glut"

[doxford] 20/6/2017 12:41

Unfortunately they still reek of dead polecat.

[rodneyfoster] 20/6/2017 11:10

One sell of 12 shares falls 2.5% Something odd here chaps I reckon massive sell in background

[papillon] 19/6/2017 23:06

Not looking good for oil prices in the short term.

[beggarman] 19/6/2017 17:43

Here are a few financials to explain the current situation. I am not sure when the money from the placing was actually received, they included the new funds in the balance sheet as at 31st March but I also saw an interview with Eric Forss on the 20th April and he said they had not received the money yet, I have therefore put the funds in Q2.

Q1

They start the year with $1.684m cash at the bank, they lose $1.3m on the quarter leaving $384,000 going forward into Q2. As the three wells which were drilled in Q1 were not completed until the 24th March, the drill costs would be shown in Q2.

Q2

The quarter opens with $384,000 and is increased by the funds from the placing of $4.874m giving $5.258m. I would expect the loss to reduce to $1.1m due to the increase in production from the wells drilled in Q1. The Q2 losses plus the cost of drilling the Q1 wells would amount to $2m, leaving the cash position at the end of Q2 at $3.258m.

The costs of drilling nine new wells would be $2.7m, if the wells were in production for the whole of Q3 they could reduce the loss to $500,000. So at the end of Q3 they would have about $50,000 in the bank.

Barskiy will have to do something about his funding before the end of September, either a placing or restructure his loans to reduce interest payments. With regard to placings look at Dome Energy, they ended up with a share price in decimals of a Krona because of placings.

All the above assumes Matra pay their bills when due and that their debtors also pay Matras invoices.

[beggarman] 19/6/2017 13:27

O.K. they stop drilling then.

[rodneyfoster] 19/6/2017 13:25

They can't place at these prices Sp would crash

[beggarman] 19/6/2017 13:14

If they can't place shares or re-finance loans, they will have to stop drilling as they will run out of cash.

[rodneyfoster] 19/6/2017 12:48

Ned You are well outHappy cruising in the literal not metaphorical sense .

[nedhammers1] 19/6/2017 12:38

I'm glad I'm out only made a 15k loss and Kodal Minerals not working out for me at the moment! At least I'm enjoying my med cruise. Then again the weather is hotter back home lol ;-)