Petro Matad Share Discussion Threads

[2solaris] 05/7/2019 11:27

From Malcy this morning

Petro Matad
I was very fortunate to catch up with Mike Buck, CEO of Petro Matad earlier this week before he is off to Mongolia for another exciting drilling campaign. MATD is the leading explorer in Mongolia where Petrochina operates 95% of production, much of which is in decline. Interestingly, at present all crude is trucked to China and all refined product demand is imported from Russia…But, Mongolia is building its own refinery using a soft loan from India which is scheduled for start-up in October 2021 although that may be optimistic. So, with Petro Matad being the only real ‘local’ player opportunities are good and relationships with the Government are improving all the time.

It is fair to say that the 2019 exploration programme is concentrating on Block XX but Blocks IV and V haven’t been forgotten, indeed these two blocks are expected to have their exploration licences extended imminently. The key well, the Heron well is expected to be spudded around mid July, carries a 75% COS and should be producing results in the second half of August. MATD has an agreement with Petrochina for use of a local testing unit which could be on site within a couple of weeks or so if needed.

After the Heron well the rig moves to the smaller, Gazelle prospect probably in early September with its results probably at the end of that month. Meanwhile, using another rig, the plan is to spud the well on the Red Deer prospect in the Asgat Basin at the end of July. A number of people ask about blocks IV and V and why it is possible that the exciting Velociraptor well in the Raptor trend in Block V may not be drilled this year. As indicated above these blocks are likely to have received their extensions by then whilst the exploration licence on Block XX expires next June and the company has to ensure that it has an exploitation licence in place come July 2020. If that means spending its money ensuring that it can be held by production effectively then it will be well worth it.

If successful at Heron, one can expect a long term production test which apart from hopefully keeping the licence will start to bring valuable cash into the company. Oil will likely be trucked the 25 km to the Tolson Uul CPF in unison with Petrochina with whom pretty good relations are being kept. This will probably mean that there won’t be lengthy and expensive unitisation discussions and that cash flow can be used for further drilling.

Petro Matad is in an interesting place right now, disappointment over last season’s drilling campaign are behind it and it has every chance of being a producer in-country this summer. It is fully funded for this programme which has appraisal at Heron 1, high potential at Gazelle 1 and a higher risk but sizeable structure at Red Deer 1. It is clear and sensible that Block XX gets priority in the event of success for the reasons shown above and shareholders have every right to be optimistic about this summer’s programme.

[2solaris] 04/7/2019 16:06

That's some operation for Mongolia, great for them if this first well strikes oil in commercial quantities, I feel fairly certain it will but you just never know until it happens.

[grannyboy] 04/7/2019 16:04

The rig should be at the drill site now.

[2solaris] 04/7/2019 16:00

Read post 2461.

[matunde24] 04/7/2019 14:51

When are we expectinga decent rise in sp? Or when is the actually rig going to be in action

[tomford8] 03/7/2019 17:02

thanks to Neeko on lse

Mike Buck CEO - interviewed yesterday giving latest details on all 4 Petro-Matad drills
well worth a listen.



In summary, with regards to dates...

Heron 1 - "The Rig is on the move now, the rig is only 20km away at the moment and hoping to spud before mid July" - Drilling and logging results expected before the end of August. If warranted, they will then bring in work over rig which is currently in the block next door and contracted to run

Red Deer - Spud expected before the end of July, hoping for results in early September from the drilling and logging of Red Deer

Gazelle 1 - Expected to spud in early September and completed around the end of September (including drilling and logging results)

A lot more around plans moving forward as well, definitely worth a listen. Also keep an eye out on Malcy's blog as I know he had an interview with MB yesterday as well... Great publicity starting to come through on the company with a significant news flow in the coming months. Exciting times ahead... GLA

[taxibabe] 03/7/2019 15:17

velicoraptor strikes with its 250mbo and all bets are off

[grannyboy] 03/7/2019 14:42

I'm looking for between 15/20p on the Heron well finding oil, anything above would be a bonus, but the other two wells follow in quick succession.

[taxibabe] 03/7/2019 14:37

One quid lol

[taxibabe] 03/7/2019 14:36

Should read £1.00

[taxibabe] 03/7/2019 14:36

Still a big gamble could go either wayIf it strikes big could not £1?)? If not back to 1p

[pro_s2009] 03/7/2019 14:08

Should be gb

[grannyboy] 03/7/2019 13:50

The rigs only 20klm away, should be erecting in the next two/three days, end of next week for spud?..

[2solaris] 03/7/2019 13:02

I was just about to post that Pro, well done!

Heron 1 rig is now on the move!

[pro_s2009] 03/7/2019 12:29

Mike Buck CEO of MATD interview:



.

[alistair4444] 02/7/2019 15:29

Recoverable Resource potential of 201 MMbo Block V 2019.

The Velociraptor Prospect has been chosen as the final drilling target in Block V 2019. Velociraptor is a large, shallow, inversion anticline in the Taats Basin with Mean Prospective Recoverable Resource potential of 201 MMbo.

Hope the company manage make it here to drill Velociraptor before the drilling season ends around mid November due to weather. Petro Matad CEO Mike Buck, is keen to possibly fit Velociraptor in however depends of how other drilling results pan out elsewhere.

"We are looking forward to starting our 2019 drilling operations after considerable effort to secure all the necessary permits and to complete preparations. The real work starts now and the next few months will certainly be a very exciting time for the Company." MB

[trulyscrumptious] 02/7/2019 14:12

RuiGloria. Yes, same here, hopefully a great summer ahead.

[2solaris] 02/7/2019 14:11

Slide 19 refers to Block XX only so of course there are only 3 wells mentioned there. There are ample references to a fourth well so as not to split hairs. It seems to be an either/or scenario not an if.

[ruigloria] 02/7/2019 13:41

Really excited about MATD. Surely news coming soon as reads like a leak of some sort to me. Not complaining however. Time will tell.

[alexios1201] 02/7/2019 13:39

$16.6M Cash as of 14JunShould be just about enough cash to drill all 4Expecting cash call by end of AugustThey need to strike Heron and Gazelle at least for ok placing price

[alexios1201] 02/7/2019 13:37

4wellsBlock XX: Heron1, Gazelle1 and Red DeerBlock V: VelociraptorLink to presohttps://twitter.com/Petro_Matad/status/1144589312966692864?s=19

[spangle93] 02/7/2019 13:08

Just for clarity, you asked if I'd read the RNS, then you quote the presentation, because there is nothing about a 4th well in the RNS, not even speculation that there might be one.

The presentation indeed has the "either/or" phrase on one slide, but slide 19 shows a timetable with 3 wells only. Ditto Conclusions - slide 22 does not mention a 4th well.

But that's why we have discussion boards, so we can exchange interpretations. I'll be delighted if they feel they have enough certainty on a target to drill a fourth well this year. By the time they've drilled those 3, we should be well north of the current share price.

[trulyscrumptious] 02/7/2019 13:05

I must say, this thread is extremely quiet considering the 'buzz' has started. People will be scrambling to join the fun and recent sellers cursing they have to pay more if they want back in. What a summer of fun we could be in for.