It’s been a long hard slog for holders of Matra stock over the last year or two. The company have had to endure set back upon setback with a 3 steps forward 2 steps back grinding route to production. Last year investors were happy to read that Matra were confident of bringing production on stream at A12&A13 with a 1000bopd being forecast from the company but what investors failed to realise is that in the vast majority of cases the route to production is never straight-forward for small E+P Oilers. There will always be technical glitches; it is how the company go about fixing them that should count as to a pointer of their intentions. I have over many months been in contact with various sources, some expert in the art of drilling, and they tell me that Matra have had to drill A12 A13 on a set up that was not conducive to the formation/area this has been alluded to by the company.
So where does this leave investors? Well I’d say that they are in a very sweet spot indeed. With an sp below 2.5p, Matra are hugely under-value.They should be 4/5p minimum on the fact that oil is flowing!. Why they are under-value is due to sentiment among traders who constantly attack and bash the stock. It seems that there’s never a day that goes by without some form of online attack on different financial chat sites of course the company haven’t helped themselves with a non-existent Investor relations policy. The message is being lost in the vitriol being spewed out online. The company or their representatives need to get On Message! The whole emphasis of Matra is about to change over this year with a planned drill of THE EAGERLY AWAITED A14. The facts at the moment are that both A12&A13 are both producing oil. A12 has produced at 1000bopd reducing to approx’ 500bopd when the casing sprung a leak. A13 is now on production producing approx 45bopd, oil sales have been ongoing since late March, revenue is now coming into company coffers with at least 15/20,000 barrels of oil being sold as of writing. This will increase once the work over rig remedies A12. Matra could in 4/6 weeks be producing over 7000 barrels of oil per week! The company plan to use all the data learned from A12/A13 to significantly enhance the A14 drill. They intend to begin drilling A14 asap after identifying a “sweet spot” from seismic already covering the patch reef system. They will also shoot new seismic to the East and nEast this year and will probably overlap the seismic to include the A14 site, this will give an increased understanding of the structure and could result in a 2/3000 bopd. Of course there’s no such thing as a racing certainty in any walk of life problems do and can occur out of the blue, such is life. Such is Junior oil exploration. It’s time for the genuine investors here to play their part and get behind their company. The case for Matra is compelling when you research the fundamentals of the company and correlate this with the potential amount of oip with the experience of their top men. There’s more oil here, every indicator points to it and it is my opinion that the company have been battered into a corner by the relentless sniping of day-traders (who one day are positive then the next are negative depending on their daily trade position) whereby they are ultra cautious to the point of timidity. I have interviewed PH+NH on many occasions and found them to be genuine in their efforts. However I have NOT given them an easy time. I have certainly given this company a hard time and it is to their credit that they have never ducked any of the issues I’ve raised. That to me speaks volumes as to their integrity. They will almost certainly rise over the coming weeks and months as investor sentiment begins to change. The company are in a much improved position from 6 months ago yet the sp isn’t reflecting this; yet! But as sure as night follows day on the Russian steppes they look set to finally slay the beast. When full field production comes here what price Matra? It’s interesting to note that Delek increased their holdings in the company at a price higher than it is now. I don’t see Delek running scared that’s because they know the potential gains over the long-term. The whole emphasis is changing here and I’d expect over this year for the company to reach 6p with the potential to reach 10p as and when more oil begins to flow. Long-term who knows? How long is a piece of string? These really are one of the best junior oil plays currently out there. If you’re not happy investing then sell up and move on it’s as simple as that! Those who’ve stayed the course will reap the profits!
*****I’ve been receiving some new data/information from our snoopers in Orenburg. Apparently the work over rig is situated 2 Kilometres away from Matra, drilling at a site known as the Kurganskaya or Colganskaya field for a Russian oil company named Preobrazhenskyneft. Not sure of the spelling.*****