I’ve been very busy here researching Matra trying to read between the lines as to just how much oil there actually is we know that the company have been beset with technical problems for the better part of this year and that the problems were in truth self-inflicted but and here’s the crunch; the water ingress happened because Matra were legally obliged by the terms of their license to drill into the water zone! Crazy I know but fortunately for stock-holders Matra has an excellent geologist in Dr Neil Hodgson. In-fact it was Hodgson who identified the find and managed to interpret the data’s technical glitches which were the reason why the previous owners couldn’t read the seismic apparently it was Hodgson who realised that a thick salt section/layer had been playing havoc with the seismic. The top men at Matra, Peter Hind and Neil Hodgson, go way back with over 50 years experience between the two of them, both have worked together at Premier oil and played a part in progressing that company to where they are now. Hind is an intelligent determined individual who actually is credited with a “go get” ethos. It was Peter Hind who travelled to Russia knocking on departmental doors searching for exploration opportunities several years back, he also changed the focus of the company to Russia realising that there was huge untapped license opportunities just sitting on the shelf due to lack of financial committment by license holders. Hind is a determined individual who much to his credit has become fluent in Russian!
Hodgson has over 25 years of experience and is known to be a geologist that can actually find oil! The type of exploration geologist that can hold a full working model in his head as well as the computer. (A rare breed if ever there was one!) Well respected within his field having known and worked with some of Encores people indeed Dr Neil is very well-respected.
So just how much oil is there?
Well if you go back to 2009 Peter Hind was talking in excess of 65 million barrels with a potential increase on that! So why are Matra now down-playing it to 15.1 million? In my opinion it’s due to the problems encountered through-out this year. Expectation was running very high before the water problem. There’s no doubt whatsoever that the oil is there and I’m firmly of the opinion that there’s much more there. Going back to 2009 is probably where investors should be researching from. The Arkhangelovskoe license is in an area that is proven oil rich and is adjacent to many other oil plays, Matra quietly acquired more acreage in July 2008 further proof that they believe the oil structure extends out from where the current find is.
So where are we in trying to unravel this company?
Well we are back to 2009! (Although many lessons have been learnt)
Matra are sat on any where between 15.1 million barrels of oil right up to well over 65 million however if you thoroughly research all the news in the public domain it is obvious that they are under-playing the oip expectation! There’s more oil here! And time with further seismic will prove up the oip. Once production comes on stream revenues will rocket thus allowing the company to further explore their block with potential to prove up an oil bonanza!
I expect to see a huge increase in Matra’s SP over the next 12 months they could literally hit 50p! Of course it’s only my opinion but with an sp at bargain basement prices it’s a punt that is certainly well worth it!
Eyes on Matra! Because believe me “There’s nothing the MATRA to worry about here!”