MATRA. Are a Buy! Buy! Buy!

We’ve stuck with the company all the way down the line. Finally after much ado it’s all beginning to come together.Yes we know there’s been hiccups along the way but that’s the norm’ for small E+P’s. Especially Matra who have shot themselves in the investor relation foot more times than I care to remember.

Three steps forward two steps back. Matra are more akin to three steps forward two and a half steps back! Eventually they do get it right. The operational update is very good news for investors and long-term holders. The only piece of the jig-saw now missing is the A12 test/production figure.

The Blog kept telling the Blogosphere that eventually they would get it right on A13 and A12 and that production testing had been ongoing here and at long last we now have production and revenue sales on A13. It was only a matter of time. We told investors to stop fretting about the Production license last year as some began to fall apart doubting their investment. We foretold the issuing of the PL. Low and behold it came through!

We predicted the success of the A13  remedial work and the test production we knew that the oil was flowing and that Matra had got it right! It was never in doubt here unlike some who wrongly predicted the demise of MTA!

Some times it’s difficult for online investors who constantly watch and post comments on stocks minute by minute to stay rational. The judgement of any investment call should be made on the known facts not on ill-informed chat site scat! This Blog predicted and foretold the resumption of production on Matra’s assets; we urged investors to stick to the known facts and fundamentals; to pedantically research their investment.  The BMD site knew that production had kicked in. BMD  sources are bang on! The timing may be out sometimes but the information is accurate! It is the company that control the timing but they cannot control the information!

Now here this? There are many oil exploration companys on the A.I.M. trading at many multipules of the current MTA stock price these companys have in many cases NO oil discoveries! Yet their stock price is in some cases 30p,40p,50p,60p etc What they trade on is expectation of discovery and the reputation for professionalism in oil exploration of the Board to bring home the bacon (Oil). The board of Matra have been much maligned over the last year some of it justifiable but most of it wide of the mark. The dedication of the Matra board to doggedly stick to the tasks at hand should speak volumes to private investors. Temperatures at the drill site hit minus 30 degrees! Tech problems were encountered and overcome, roads were impassable at times! When all around were thrashing and wailing and bemoaning their investment the Matra Board stuck to it and eventually got it right!

Matra have already discovered the oil. The production License is now in force. A13 is now Producing. Revenues are in-coming. A12 has been completed. The oil reservoir at A12  has been reached and the oil zone will (if it’s not already) be gushing up Urals Blend to the tune of 1000 bopd.

The 1000bopd isn’t my figure it’s MTA’s. So just how much oil is there? Well there’s been a lot of comment on the present confirmed 15.1 million barrels in the recent cpr, now bearing in mind all that’s gone on for the last two years or so with estimates ranging up to 80 million plus I’d say that the potential here hasn’t been quantified. There is as you’re all well aware the potential for further upgrades in OIP not least from seismic data that suggests that both A12 and A13 are close to preserved in-situ patch reefs with thicker, better quality reservoir.

There could be up to or over 100 million barrels of Urals blend.

TABLE 2

It needs to be noted that the above figures are in addition to table one below. “If proven, these volumes would be additional to the volumes of recoverable resources shown in Table 1 or stated in the Deterministic Resource Estimate”

TABLE 1

So in conclusion the pointers are here for all to see. The case for Matra gets stronger and stronger just as the price of Urals Blend keeps rising upwards ($95) so to will the Matra sp.  Delek have upped their stake and will no doubt up it some more. There will be further wells drilled and more acreage sourced probably this year.

There will be a re-rating shortly as the revenue begins to pour in on full production and I personally expect the OIP to significantly increase this year!  It is a frustrating stock to be invested in if your constantly over reacting by creating demons that do not exist! Stick with the known company facts. The one most fundamental of which is that Matra Petroleum Have Oil!!! It doesn’t take a genuis to make the connection. They can only go one way. Look forward. What will be the company position at Matra after 12 months of production? Way under value and a near certainty to at the very least reach double figures on sustained production this year. Great opportunity here.

A lot of feedback as to why they are still 4pence.Why? Because Matra Petroleum do not have a coherent Investor relations strategy! They are always off message. It’s the same for most small oilers they fail to realise the value of a good PR strategy!

There is certainly 100% upside here with a great prospect of a 12p target sp being breached soon enough. If they upgrade the OIP over the coming year to anywhere near 80/100 million barrels recoverable then it will go ballistic!

Now you know why this Blog put a buy rec’ on them.

Viva!

Daniel