Matra Petroleum. It’s all in the Annulus!

It’s been a tough week for Investors of Matra Petroleum who have seen the sp plummet on news that A12 has sprung a leak. The share price began to fall yet again. It’s a funny old “to do” when one considers that 3 months ago the sp was trading in excess of 4p without a drop of oil being pumped or sold. The company released an operational update last week which to all intents and purposes confirmed the viability of A12  to produce approx 1000 bopd (see rns). During the latter stages of production the well sprung  a leak in the casing at a level above the main reservoir. Although the latest hiccup was disappointing it looks and feels to me that the reaction has been fueled by shorters and daytraders who have plagued this company at every twist and turn, spooking weary holders out of a stock that is in the opinion of the Blog one of the best small junior oilers listed on the Alternative Investment Market.Cheap as chips too!  Of course Matra haven’t helped themselves with a non-existent Investor Relations Policy. The company would have you believe that the reason for this is there just isn’t enough hours in the day for Mess’rs Hind & Hodgson to go glad-handing the great unwashed, pity, because both are known to be dedicated oilmen well thought of and respected in their fields by oil industry colleagues. A coherent PR campaign would be widely welcomed by Private Investors and Institutions alike. Genuine Investors know they’re busy people but a time out needs to be called to get the message across.

The Message.

Matra Petroleum are sat on top of a lake of Urals Blend oil. The whole area is a proven oil bearing region, A12 has confirmed that it’s capable of producing 1000bopd,while the water leak has come from a level above the oil and is in no way connected to the previous water ingress. It’s an easy fix compared to the last glitch! So says schlumberger contacts.The Annulus A12 is as of writing awaiting a workover rig (and still producing) which I can exclusively reveal is located approx 2 kilometres away from the Matra drill and is expected on site next week. Rumours of a board meeting in that same week prior to the AGM abound. Where among items on the agenda should be the next drill which is known to be targeting the patch-reefs. This latest drill will be very close to A12 and I’d expect that the data gleaned on both A12/13 will almost certainly be put to good use! The A14 drill will be undertaken without seismic and is completely different from previous drills it is underpinned by the data from A12/13 which points to Matra being confident of hitting more oil. Seismic will be shot this year to the East and North East of the Sokolovskoe Field: In-fact it’s safe to say that Matra intend in due course to put the whole field on PRODUCTION! A little known fact and a statement of this gem of a companys intentions is the fact that Matra have an office in Orenburg fully staffed with about a dozen employees. No, I’m afraid to say some have been lead a merry dance here by the pied pipers on the chat boards! Matra Petroleum are here to stay come hell or more water this company are going to succeed. Once the A12 fix is complete then it’s onwards and upwards via A14, seismic, then another drill possibly thrown in late in the last quarter of 2011. There’s a good chance that 2000/3000 bopd could be on production by the years end. The hard work has already been done here and investors should realise that the oil is actually already in place and will almost certainly increase. Both bopd and oip look set to rise over 2011. As for the current bargain basement sp it is testament to a weary investor base nothing more nothing less. Delek aren’t in the least bit concerned and they are heavily invested here. Base your investments on fundamental basic stock analysis not Banshee screams and Siren calls from internet stock Bashers. Short-term; they should hit 6p this year and could hit 10p.  Long-term holders know the value here. It will only get better!

Viva!

Daniel

NB*****The water leak is in the Annulus which is the space outside of the tubing but inside the casing (see pic 1) for those of you more technically minded a possible resolution is thus;>” They will have to shut down production and pull the string [production pipe],
> run a bridge plug to seal off below and a squeeze packer to seal off above. > Mix, pump and squeeze cement into the split casing. Pull out, allow cement time > to set [couple of days] run back in and drill out. Pressure test to see if it
> worked [if not squeeze some more cement in etc]. Pull bridge plug and run back > in with production tubing

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  1. Pilesh says:

    Dan,

    That is a fantastic post, as always really appreciate all your hardwork

    Viva Dan

    Regards
    Pilesh

  2. Musclesza says:

    How funded are the company? Believe a fund raising on the cards?

  3. Lt says:

    If this is indeed accurate why on earth won’t PH, NH or Gill Guest buy these “so called cheap as chip shares” in their own Company? If as you say A12 is easy to fix surely they must have the confidence to buy in themselves. They are all on a handsome salary (not BG). It is this alone that does not inspire much confidence.
    Thanks for your update.

  4. Danny says:

    Hi Dan
    thank you for the info, it seems a no brainer buy- buy Dan

  5. cultchie says:

    Dan,
    how can they tell at what level and where the leak is? How confident can we be that they are correct?

  6. johnptfranks says:

    The post does makes sense based on the information we know from the drill site. My only concern is the delay in production while the production pipe is removed to repair the water leak.

    I was also wondering about further drilling on sight and look forward to information on the new A14 drill.

    Is there a possibility that this company has been the suppressed by market makers? To entice pc’s to sell in order to purchase stock at a value well below what it should be. Once orders filled promote to raise the sp.

  7. Steve says:

    Thanks for that Dan, makes me feel a little more relaxed about the recent drop.

  8. Anton Gully says:

    Quality post. Very informative.

  9. now dan wants the cash says:

    hello. am i still being silenced or are we allowed to post negatives yet?

    • Brokerman says:

      I shall answer this one Christian by way of the affirmitive. To say that you’re banned for posting negatives is an understatement. Your comments are filtered due to their abusive and libelious nature. You are as you and I know guilty of trying to post some disgraceful abuse that would not be out of place in a whore-house. Take your “now dan wants the cash” moniker; shameful. But rather a reflection on your present mind-set. I can assure you Christian that I do not want your cash. Better men/women such as the posters currently on display never lower their self respect by stooping to such base levels even though you can read plenty of negative comment.
      The difference being that when we make a mistake or call something wrong we take responsibility and hold our hands up. (Such as my TRP cock-up 16 months go) It takes a big man/woman to apologise Christian when they know they’re wrong. It’s a pointer as to their integrity which sadly your abusive nature proves you lack.

      Daniel

  10. Tom says:

    What are your long term forecasts here Dan?? I agree with you regards end of year forecast, however in the past you have said 50-100p as being achievable long term!! do you still stand by this?? just interested in your thoughts on 2-3 years time.

  11. MTA says:

    Dear Mr Brokerman
    I do not know why you are always bullish on this company. You’re obviously a believer which I am not. PH and NH are a comedy duo appearing live @ the Mta roadshow to ruin on a monthly basis compered by BMD (THE WARM UP ACT). Too many recurring hiccups for my liking even though I have made good money from the company I have just been worn down or drowned by water!
    But good luck to all still invested. It is in the words of a famous song a “mystery tour” i am no longer able to endure.

    Long suffering MTA ex-holder.

  12. Lt says:

    Dan, if they can’t fix the water ingress (again) what then? What about a response re the lack of Director purchase? Where is the confidence?

  13. Nibor says:

    Thank you, Dan, for a lucid technical explanation of what I had had trouble in understanding.

  14. Brieno says:

    Excellent, informative post Dan. MTA have been on my watchlist for a while – the info you provided, combined with the current shareprice, which must significantly undervalue the company, gave me the confidence to buy in for the first time today.

    Hopefully this will eventually allow me to recover what I have just lost on a disastrous investment in SeaEnergy – still can’t believe the price the directors have agreed for the sale of the offshore windfarm licences!!

  15. paul says:

    Your diagram has fluid flowing the wrong way [unless someone is pouring water down the production tubing]. The RNS stated that water ingress was coming from behind the casing. Therefore to get into the tubing it would have to come in below the production packer. Sounds to me like the same problem they had with A13 and we all know how long that took to sort out. A squeeze job with cement as outlined will repair the casing rupture but if near the perfs could reseal the formation which would need reperfed and possibly reacidised.

  16. Nick says:

    Just started reading about investing, looked at this company from this blog which is very informative. But I do not know how to purchase shares? I have a little money, not a lot, £3000. Would it be silly to invest in something like this, would I loose all, or could I make back good money. I am new to investment, but there seems to be mixed reactions on the way it could make money in the future. How much are shares at the moment? could this increase substantially in the future? How then do you sell to receive money back. Sorry for the very idiotic questions. I hope someone can shed some knowledge on this situation for me. I am a student, and not of investment, or oil, but of psychology. Any help or advice would be appreciated.

    • Brokerman says:

      If you want to trade shares online then get a practice account. Do not invest in any stock until you are fuly conversent with your trading platform and research your itargets in-depth, but more importantly seek professional advice.

      Dan