Matra Petroleum. Eyes on!

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!”

Hola!

Daniel

You may also like...

No Responses

  1. LT says:

    Good positive post Dan but unless they get that illusive Production License we won’t be seeing 5p never mind 50p!
    Also all eyes are focussed on A-13 now as the end of this week is the 10days stated by Peter Hind on his last update. Let’s hope it’s not another false dawn. We have had too many of those before.
    Good luck to all Matra holders! Lt

  2. 13thMonkey says:

    OK Dan, you’ve convinced me! Back into MTA as of 5 minutes ago. Here’s hoping for a decent RNS on Friday or soon after.

    Can’t really see 50p, but I’m not greedy (much): I’ll be happy with much less than that.

    You’re being particularily bold with this one Dan- where does the 50p come from?

    Thanks as always,

    Monkey

    • Brokerman says:

      It comes from a possible 65/100 million barrel potential. Bear in mind that the sp is currently at rock bottom book value due to the production halt. Once production is achieved a steady influx of cash at 75000 dollars a day gross on a low 1000 bopd will quickly rack up MTA cash reserves which will add significant value to stock thus enabling the board to acquire more seismic to map the current discovery and possible further asset buys in the region. It is almost certain that MTA have been eyeing other licenses and are under-playing expectations due to the problems encountered this year etc. It’s purely my opinion based on what I know of the company and how other companys they have worked for have progressed.
      Matra have more oil than Desire,Sterling and a whole host of other oil exploration companys. Their problem within the current climate is one of perception. Once it is perceived that they are back on track and earning revenue perception will quickly change as expectation begins to grow that Orenburg as well as having a full oil industrial infrastructure is an oil hub where other countries such as China and India are beginning to closely monitor. There is definately more oil.
      Just my opinion.

      Daniel

      • 13thMonkey says:

        Thanks Dan, certainly an exciting prospect. Will be great to see them producing. I take it you’ve no qualms about the production licence?

    • Dan's #1 fan says:

      Monkey, Dan doesn’t tell you how to stand in the dole queue so why are telling him how to write his blog?

      • 13thMonkey says:

        Hey, better than being a mindless sycophant ‘Danfan’.

        Seems to me that like a lot of fans, you’re only good for blowing hot air.

        Now unless you’ve got anything worth saying, maybe you should just zip it.

        • Dan's #1 fan says:

          Monkey, your chat chat smells worse than stinky cheese on a warm day. Learn some respect for Dan and leave your mindless nay saying on the other private investor forums.

  3. Captain Patience says:

    Hi Daniel,

    Have you heard anymore news/rumours with regard to GCM Resources?

    A vague contact reckons that the Scheme of Development for the Phulbari coal mine could be signed off before the next AGM on 6th December?

    Thanks for the heads up on XEL, riding / trading that one nicely at the moment.

    Regards,

    CP.

  4. Nick says:

    Dan , I note from the companies website that their license expires at the end of 2010 . Is there concern that they will not be granted a production license ?
    Nick

    • Brokerman says:

      No I don’t think so. I can’t see any problems from what i’ve researched it’s the way things go in Russia. Extremely slowly.

      Dan

  5. R. Patel says:

    Have you looked at AMC. They are sitting on a major nickel and copper deposit worth around $6.9 billion. Awaiting license approval in 6 weeks and only valued at £13m. Would welcome your opinion on it?

  6. Aj says:

    Hi Dan,

    Hope your well, nice update on MTA. I noticed XEL was abit down today, good buying price for the smart investor but the share price should rise very quickly in the next day or so as drill results come nearer. Do you have any updates on XEL? and have you heard anything on BLVN..

    As always I enjoy your writing and thanks again.

    Cheers

    Aj

  7. OILBUG says:

    DAN

    wonder if you could help on mxp blog, thinking of investing doing some research, the debt level and potential need for a issue of shares before end of year is the problem

    on your blog you never usually recommend high debt companies ?

    on the discovery front i take your view 100% even though the doom merchants say nothing proven.

    However really like you to reply on debt issue question

    thanks in advance…………………………