Petro Matad Share Discussion Threads

[spangle93] 13/9/2019 00:09

Really good value the markets interview - informative and rational.

Thanks for putting the link in the header, Pro - wish there were a transcript!

[pro_s2009] 12/9/2019 23:15

Should term voting machine.

Long term weighing machine.

Thats the markets.........value will out.

[big brother8] 12/9/2019 23:05

Going

GOING

GONNNNNNNNNNNE

Bang 0.7p

[big brother8] 12/9/2019 21:14

Thanks for your super tip, but I pass. considering you were telling mugs to buy oex at 0.35p claiming 1p apparently, while you dumped on them.


Maybe pro-noncey will like your scheme, the dopey spaz tend to lose -50% almost every week.

[jayrh] 12/9/2019 19:12

If you want a gusher have a look at casp. Gla

[jayrh] 12/9/2019 19:12

If you want a gusher have a look at casp. Gla

[taxibabe] 12/9/2019 17:48

I think it's commercial but the bulk of the revenue will end up with the Chinese

[2solaris] 12/9/2019 16:53

Agreed, no point in agonising over the ups and downs, I made a decision and will stick with it as well.

Post 3491, who drilled the boreholes and what is the outcrop data. I thought oil was seeping from the ground at Fox...

[trulyscrumptious] 12/9/2019 16:23

Regarding Red Deer, what exactly does this mean from the presentation, did they/someone drill a test borehole?

'Outcrop and shallow borehole data confirm presence of oil prone source rocks.'

[pro_s2009] 12/9/2019 14:37

Volume is dying off.......so basically everyone has their positions ready for Red Deer-1 news mid to late next week.

[tomford8] 12/9/2019 14:30

reiterate Pro_s2009 post from Upstreamonline post

Petro Matad in Mongolia oil strike

London-listed explorer hoping for commercial flows from discovery amid talks with PetroChina for possible early development Steve Marshall

9 Sep 2019 07:29 GMT Updated 9 Sep 2019 14:04 GMT
Share:


Petro Matad has hit oil pay with the Heron-1 exploration well sunk on its Block XX in eastern Mongolia.

The probe, which was earlier stalled by land use issues after being spudded in July this year, encountered a 77-metre gross interval of potential oil reservoir after being drilled to a total depth of 2960 metres into the primary target in the Lower Tsagaantsav reservoir, the London-listed company said in a statement.

It stated the reservoir interval, which included both oil and gas shows, was very similar to productive reservoirs found in wells at the T19-46 oilfield immediately to the north in PetroChina-operated Block XIX in the landlocked East Asian country.
The well, which was drilled as an appraisal to the latter oilfield, had a pre-drill resource estimate of 25 million barrels of mean prospective recoverable resources.
Casing of the well is now being carried out ahead of a testing effort that is likely to require a further rig to be brought in.

Petro Matad chief executive Mike Buck said the test is aimed at delivering commercial oil flow rates so the company can move into the exploitation phase at the discovery once its exploration licence on the tract expires in July 2020.

“We have already been in dialogue with PetroChina with a view to using its existing field infrastructure to develop the find so that we can move into early production, contingent on commercial flows, Buck told Upstream.

He added that commercialising the discovery would enable it to retain the block so that it could continue to appraise further possible finds on the acreage.
The well was drilled by DQE International’s rig 40105 that will now suspend it and then be mobilised to drill the Gazelle-1 hole in the same block, one of three Mongolia tracts wholly owned and operated by Petro Matad.
The Gazelle prospect lies roughly five kilometres west of Heron-1 and has been estimated to hold mean recoverable prospective resource potential of 13 million barrels.

Petro Matad aims to spud the Gazelle-1 well by the end of September targeting a structure that is on trend with a pair of oilfields operated by PetroChina to the north, with a 50% to 65% chance of success for the probe, according to Buck.
The company is meantime also drilling the Red Deer-1 well in the southern part of the block that was spudded last month and has mean recoverable prospective resource potential of 48 million barrels of oil.

The well is being drilled using rig DXZ1 supplied by Daton Petroleum Engineering and Oilfield Service but has been delayed due to equipment-related issues, with drilling results due in mid-September.

Buck said progress with the well has been in line with expectations and there have been no surprises in terms of the stratigraphy of the targeted structure, adding that this was positive

We thought we understood the geology here and that has been borne out,he said.
He revealed the fourth and final well of the campaign will target a prospect dubbed Velociraptor - named after a dinosaur in the Jurassic Park movies - in its Block V in the west of the country that has prospective resource potential of as much as 200 million barrels.

The company will thus be returning to the block where it came up dry with the Snow Leopard-1 well drilled last year, although Buck said this probe also demonstrated there was a working petroleum system in the tract.

He said there was additional prospectivity of around 200 million barrels on either side of the prospect that could potentially double resources in the event of a discovery.

“The block has larger high-impact prospects that we hope can build on what we have going on in the east where we hope to generate early production revenue from possible discoveries, he said.

However, the drilling campaign could be extended with further wells as Petro Matad would be keen to use the rig to drill more than one prospect in the east, he added.
He admitted though we are still scratching our heads over prospectivity in the companys Block IV in the west where the Wild Horse-1 well drilled last year came up dry but showed source rocks exist.

Petro Matad has recently gained a two-year extension of the exploration period for blocks IV and V to July 2021.
Pro_S2009 - 09 Sep 2019 - 17:36:02 - 3421 of 3490 Petro Matad - Fully funded 6 well campaign for H2 2018/H1 2019 - MATD
Looks like a rig problem at Red Deer-1 has caused a delay. But drilling ahead now. People were speculating that Red Deer-1 should have been into the target zone some time ago, looks like it will go through the target zone later this week or at the weekend.
Pro_S2009 - 09 Sep 2019 - 15:54:20 - 265 of 384 I3 Energy - North Sea Oil - I3E
Matunde24, dont have I am afraid.

All being well with all 3 wells and I would suggest something near 500p is achievable.
Pro_S2009 - 09 Sep 2019 - 15:52:13 - 264 of 384 I3 Energy - North Sea Oil - I3E
I would say likely logging the well now.

Could be results later this week, certainly next week if not.
Pro_S2009 - 09 Sep 2019 - 15:50:58 - 3419 of 3490 Petro Matad - Fully funded 6 well campaign for H2 2018/H1 2019 - MATD
Very interesting on Red Deer-1 as well......


.......Recent speculation about that well is just that, after some slight delays due to kit on site the bit is only close to objective depth but should reach TD in mid September before logging..........


So still not into the target as yet........soon will be.......



------------------------------------------


12th Sept 2019 Interview with CEO Mike Buck:

[ibatman ver2] 12/9/2019 14:29

If Oil is gushing,why not tell us?

Instead wait for techies to tell them it's commercial or not. Maybe it's not gushing, but it's just dirt,which they thought was the black Gold. who knows.

[ibatman ver2] 12/9/2019 14:26

I think everyone knows there's a rat here and they are regretting not selling when you told them at 9.5p.

I think sub 6.5p in the close today. :(

[bad gateway] 12/9/2019 14:15

Apologies for the length of the piece advfn wouldn't allow any sort of link from proactive???

Petro Matad Limited
Petro Matad reports third oil find in eastern Mongolia
Whilst Petro Matad has found oil in its third exploration well, the result did not confirm hydrocarbon continuity between the previous two discoveries. With the Mongolian winter looming on the horizon the company has now called an end to the successful 2010 exploration program.

Petro Matad (LON:MATD) shares came under pressure following mixed results from the third Davsan Tolgoi (DT-3) well in eastern Mongolia.

DT-3 is the third well to successfully find oil on Block XX, but initial analysis has raised a question mark over the previously considered model for the prospect.

The well encountered significant hydrocarbon shows whilst drilling both the Lower Tsagaantsav formation and the overlying Upper Zuunbayan formation. However further analysis indicates that DT-3 lies within a separate compartment from the previous two wells.

With the harsh Mongolian winter closing in, Petro Matad has effectively called an end to the 2010 work programme, however a specialised rig may still be deployed to drill an extra well in the coming weeks.

Westhouse Securities oil and gas expert David Hart said it was a mixed announcement.

Speaking with Proactive Investors, Hart said that whilst the market seems fixated on the weaker parts, there are equally some very positive things to take from the update.

The main points the analyst highlighted were: the new opportunity to drill a fourth well; the thicker reservoir rock - compared to the thickness assumed in the previous 122 million barrel estimate; and the continuation of seismic exploration through the winter.

The analyst wouldn’t be drawn on any concrete conclusions regarding the impact to the company’s valuation, but noted that he has not made changes to his current rating so far.

In a note to clients on the 21 October Hart reiterated his ‘buy’ rating on Petro Matad targeting 250p.

Overall the 2010 programme has proved to be a success despite its initial delays, technical complications and a slightly premature end.


"In its maiden year of drilling, Petro Matad is pleased to have discovered hydrocarbons on all three wells,” chief executive Douglas McGay said.

Investors piled the pressure on the shares in light of this latest development, with Petro Matad shares down around 20 percent at around 108 pence in afternoon deals.

Although today’s update has prompted something of a sell-off, a glance at the Petro Matad’s chart will quickly put the company’s progress into perspective.

The shares have more than doubled in value since the start of the drilling campaign, when they were trading ataround 45 pence each. Petro Matad then hit a new high at 199 pence with the DT-2 results announcement on 6 October.

The DT-3 well was drilled to 1,266 metres on 27 October 2010. The well primarily targeted the Lower Tsagaantsav formation.

It was designed to test the continuity of hydrocarbons in Tsagaantsav reservoirs between the DT-1 and DT-2.

Petro Matad said that preliminary analysis shows more than 50 metres of high-quality reservoir rocks with average porosities above 20 percent. Additionally the Lower Tsagaantsav sandstones included 10m of weak live oil shows, including elevated levels of pentane gas.

However the calculated hydrocarbon saturations are low throughout the reservoir.

With both DT-1 and DT-2 showing high hydrocarbon saturation Petro Matad believes that DT-3 lies within a separate fluid compartment. Subsequently each compartment will be evaluated by the remapping of the 3D seismic survey.

In the Upper Zuunbayan preliminary analysis has delineated 5.5 metres of potential net oil pay, with average porosity of 23 percent.

"While the results from DT-3 have not proven very positive for hydrocarbons in the Tsagaantsav formation at this location, we consider it important that the well encountered a significant hydrocarbon interval in the overlying Zuunbayan Formation,” McGay added.

“The elevated gas levels and the reservoir quality of the Tsagaantsav are also technically meaningful, demonstrating the capability of long-range oil and gas migration to the Greater Davsan Tolgoi prospect.”

Petro Matad began the 2010 drilling campaign on the back-foot after an unusually long Mongolian winter. This delayed start was exacerbated further by a foot-and-mouth outbreak that isolated the first well site until June 2010.

Now with the Mongolian winter looming once again Petro Matad’s engineering consultant has recommended that the testing phase of the program is deferred until the spring.

Consequently it has now released it drilling contractor for 2010.

"Other exploration programmes are being advanced at this time,” McGay said.

The company has located a ‘partially winterised’ rig team that has drilled until mid-December in similar circumstances.

“The most significant current development is the possibility of a further add-on drilling programme at Davsan Tolgoi before the end of this year.”

Petro Matad said that negotiations to secure that rig are in the final stages, and it plans to drill at least one well, starting in mid-November, if it can contract the rig and its crew.

This well would be drilled on a separate closure to the Greater Davsan Tolgoi prospect.

“Additionally, tenders for 2D and 3D seismic surveys on Block XX are currently being evaluated, with a view to undertaking those surveys during the winter months.”

[bad gateway] 12/9/2019 14:13

Perhaps he'se being cautious because of their history drilling the Tsagaantsav.
Believe they had some failure there before after a promising start..

[...]

Hopefully different this time and the co. can start to deliver for its holders.

[tomford8] 12/9/2019 13:47

Hope so 2solaris options

16th April Rig Contract
The contract gives Petro Matad the option to drill a second well, to either appraise any discovery made in Red Deer 1 or for drilling in Block V in western Mongolia. Any testing operations will be performed by a separate workover rig

Red Deer RNS 5th Aug
"In the event of a discovery, the Company will bring in a separate rig for testing. A call-off testing contract has been signed which ensures testing operations, if warranted, can commence soon after discovery"


we will find out next week ! maybe odds of 3/1

[2solaris] 12/9/2019 13:42

I think MB could have been a bit more enthusiastic when he wrote the RNS, most companies use the word 'pleased' if things have gone well and omit it if not. This set the scene for doubt. He rectified the omission to a small extent on Twitter and then 'sounded delighted', according to Malcy. However, he had already sown the seeds of doubt.
Let's hope the test rig will be on site soon and we can have the proof as Heron does indeed sound better than PetroChina's wells.
On the latest podcast he sounded positive, especially so about Gazelle but with Red Deer, if the geology pans out to what they expect it will, we could have a discovery next week!

[pro_s2009] 12/9/2019 13:00

Makes sense to get production and cash flow asap. Also Red Deer success may alter all the plans as big follow on prospects if that comes in.

[grannyboy] 12/9/2019 12:54

Mike Buck said should have the Heron results by the end of Sept.

My thoughts too Pro...Looks like Raptor is for next year, they intend concentrating on block XX, unless something else turns up..

[matunde24] 12/9/2019 12:48

Time frame for results of heron?

[pro_s2009] 12/9/2019 12:44

What still amuses me is that Mike has said nothing in the Heron-1 result is worse than pre drill estimates..... Significantly we are 5 metres higher ( so better as larger size) and reservoir is better quality.

Mike has even said they might flow well without stimulation.... As all Petrochina Wells are stimulated in the North.

He is in effect saying, for me, Heron will be bigger than Pmean 25 MMBO recoverable and should flow better than Petrochina Wells to the North.

Complete success......

But some people are selling this......its weird..... When the result is so far better than pre r drill estimate what more can you want... Lolol