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Remember the last placing to raise finance to drill Heron, Gazelle well oil was expected along with the wildcats was at 10p a share and with a conservative 33 million barrels in Heron and further prospects on Gazelle I am sure the investors will want to see a return on investment when oil starts to flow to the surface, so I think any further placing at the figure quoted below will be limited and IMO a joint venture with PC more likely. First step the licence but I believe the upside from here is huge,
but probably at least a year away.
Shadow makes very good points and I agree wholeheartedly with his comments.
We keep seeing many posts on various BB's that a lot of the small fish (oil / gas) companies are going to go under - including another holding I have - PMO. I will lose a bit there if it does however, HOWEVER........I actually think MANY are missing a key point here.
In these uncertain and unprecedented times I feel many of the bigger (not biggest!) to medium players will go under and not the likes of smaller companies like MATD, JSE (excellent company by the way - beautiful sweet oil), BPC, & BLOE. I think they will flourish on the other side of this nightmare. WHY - because they have less overheads; staff, gear, rigs and contracts etc etc that they're tied down to as are many of the bigger players. Those contracts have to be honoured and whilst they may be able to renegotiate on a massive rig, they still have to take the rig. Its a domino affect, everyone fighting to survive and those providing the rigs are pretty much sitting pretty.
Thanks to the idiosyncratic actions of Putin and MSM - starting an oil war in the middle of a pandemic of all things we will see many companies going to the wall. Its starting already! Just this morning BA cancelled its contract with Gatwick. They've been there since the off!!
US Shale is surely close to collapse and I don't think the Orange Anti-Christ will do anything to help them. I believe I've read somewhere that he is not a fan? Also recall one article where it stated shale was pumping BOPD at avg cost of $10 and only making $5 profit per barrel, and have been for a long time. If true that is simply not sustainable.
Another bow to MATD's arsenal at the moment are the Mongolian winters where they can literally put the site into cold storage at comparative little costs to other sites. Yes we would all like to see the site pumping 24/7 - 365 but any savvy investor coming into this would know that was never going to happen with this company, unless the World goes through a sudden massive climate change overnight. Fact is MATD has time on their hands to play with and will, in due course, be struggling to pump enough oil to meet the demands called on them, and the others listed, in a few years time. And who knows how much this company may be able to bring up in the future during the season.
MATD is a LTH and save a disaster on site, life changing for many who have the courage to step in now.
All IM VERY HO
Groover: Excellent post - many thx. True - there are a lot of aspects particularly related to the current events which will have an impact on the O&G business going forward and the points you raise certainly make a lot of sense.
I assume the economic damage caused by the incredible spread of "the Virus" will need some time to be repaired. I just hope that the demand for oil will increase quickly once the situation is (more or less) under control.
BTW: I like the term "Orange Anti-Christ" - very appropriate.
ATB
Pleasure Ojay and again just my humble opinion as there are a number of posters on here with significantly more VAST experience and understanding of the O&G sector than I. I used to invest in Medical and IT years ago during the last (TECH) boom in early 2000's and did very well, but O&G is new to me having taken 18 years out of shares.
The only spanner I see in the works are the airlines going under and a massive drop in confidence in world travel. God forbid the world goes the same way as America where 85% of Americans have never owned a passport = never taken their money abroad. If other countries become so inward facing then the world will become a very different place and we will be in the ****e along with airlines and oilers.
Only description I can think to say about the twerp now. Beggars belief he is inside that office. 4 years in and I still can't get my head around it. Son, son in-law and daughter also first class idiots who are utterly clueless and yet the Generals and Pence just sit there and do nothing. Rant over.
Stay Safe
Disagree with the Captain - which is usual. Don't like to give his twaddle any credence. Unsure what his game is - surely cannot talk SP down any further. MATD is a waiting game. Next move is securing the Licence - approx. 3 months from now. Patience required . Do try and ignore un- founded speculation and erroneous facts. Have been tempted to block him several times for off the wall misquotes and falsehoods - don't like to give him the attention he obviously craves.
Groover: Capt. Stanley's opinions differ depending on his current hidden agenda. I wish that weren't so, but unfortunately it is.
Shortly before he sold his PM holdings (based upon news regarding the oil discovery) this is what he posted on this BB in response to you:
October 24, 2019 (āMore to comeā)
"And no water. Just light sweet oil flowing under its own pressure into the tankers waiting to take it away to sell.
As a business model they don't get much simpler and better than that.
Cheap to produce, financially favourable tax regime and a steady oil price with excellent profits per barrel.
A little time, more wells, more money and slowly work up Block XX. IV and V will keep this company exploring for the next 10 years and if there's oil there too we'll be looking at a BP or Shell type market cap. No seriously, if there's oil in IV and V all bets are off and we'll be seriously well off.
The worm has turned."
October 25, 2019 (Ā«GuttedĀ»)
"The story here is now very good Groover. Just developing the Heron field with more wells and a CPR/reserves estimate will make you very good money through 2020. The rest, which is potentially vast, all comes for free. Just Gazelle and the rest of block XX will blow today's share price out of the water. It just looks to be ticking up day on day which is unusual for AIM stocks but usually they rally on hype into the RNS and then the 'news' is sold. Here we were at rock bottom when the company changing RNS came. From the bottom there really is only one way to go, and that's up."
Oh man C/S: I may be naive, a fool and some other stuff. But at least I'm honest.
Okay
You should have been a detective. You're indeed correct and I had forgotten those posts. As CS says everyone is entitled to their opinion but pls Capt, let's put facts before fiction and always remember history.......aka previous comments
MATD will blow and blow big. Thxs all for your responses and POSITIVE views re where the company is heading.
If you are OUT you will miss the JUMP when good news arrives. Your choice.
I am IN as LTH, and will continue to be patient as long as necessary.
Everything comes to those who WAIT.
The Finance will be sorted when needed. and MB
is nursing the cash to maintain cash balance.
O dear o dear o dear how are you all ?
C/S's Equation:
Ramping + De-ramping = Balance.
Good for all readers on this BB to know.
I see Captain Scum is doing his normal. Ramps when he's in deramps when he's out.
Not just here, he moved to UKOG, done the same, now looks like 88E is his new baby!
Scum - you started the off topic.
Of course you must be doing thing right. Not long ago, you admitted your investments are less than when you started. Not sure mine are, so hope you dot mind if I don't follow your advice.
Happy to defend the likes of C/S posting - you might not agree, but there is foundation behind the points and they are consistently articulated.
Far better than the likes of Mr.P et al who post opinions, without any substance provided in a provocative manner (About to take off, better not miss out) which does nothing for discussion, awareness or critical analysis.