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. 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!
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“