Cool Hand Luke. Matra Petroleum!

Cover of the 2001 CD reissue


I’ve had literally hundreds of emails on this company over the last few weeks. So in-order to address the over-riding theme of why I believe that Matra are one of the best small juniors on the AIM. I answer them thus. The perception of this company has undoubtedly been hijacked by the doom and gloom brigade who have an interest in knocking small emerging companys. The boards have over this year been full of absolute tripe and this has not only been to the detriment of the company but it has also been extremely detrimental to the lonely Privateer who at times must have felt like a drowning man. The sheer weight of vitriol online has undoubtedly led to a skewered perception that is so far away from reality that it borders on insanity. It is this insanity that has exacerbated the falls in value here. The last RNS was positive. It confirmed the 1000 bopd potential which had been flowing at A12 until the water ingress. The well A12 is still flowing oil. A13 is now on production and plans for A14 are well underway.Seismic is about to be shot. Revenue is accruing here, as each day passes Matra are becoming cash generative, once the workover rig arrives and the fix is complete then investors nerves will settle. But as I see it the whole ethos of this company is changing. Lessons have been learnt not only on drill set-ups but also on the necessity of getting the message out. “A failure to communicate” leads to speculative gossip. Come the AGM I’d expect PH & NH to directly address this most important facet of company policy. The oil is there  (and plenty of it) my research suggests that it is being down-played due to the past history of the company.  Go through the CPR check out the figures and cross-reference them with news items over the last few years. In 2009 PH was talking about 65million barrels of oil. It was not so long ago that the company were talking of bopd figures in the 3/6000 range. The following shows Matra Petroleum’s Low, Best and High case estimates of Recoverable Contingent Resources: These figures were being bandied around by the company in June/July 2009.

STOOIP         STOOIP” = Stock tank barrels of oil originally in place.
Low: 75 million barrels                     
Best: 217 million barrels
High: 485 million barrels

Low: 15 million barrels
Best: 65 million barrels
High: 194 million barrels

So whats changed here? Nothings changed except the perception of Matra to deliver sustained production from the drills.

Last year investors were screaming about the Production Licence. It took its time but they got it in the end. Yes it’s a real stomach churner waiting for this company to pull all the threads together and it’s been an emotional ride for most. It is coming together, the threads are being weaved slowly but surely. The whole emphasis is changing from exploration to production and it is this latest phase of the company evolution that will bring tangible benefits. Matra has been written off more times than a journeyman boxer but what impresses  me the most is that each time they get back up, dust themselves down, learn from their mistakes and fight on. It is this sheer bloody-mindedness that is their greatest asset. A Cool Hand Luke mentality that will gain respect in the end.


El Daniel

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  1. AndyT says:

    I am sticking with them, running a loss at the mo, but with all the oil reserves it will come good.

  2. Nibor says:

    A refreshing dose of common sense to counter the mass hysteria, Dan.

  3. N says:


    Problem is that they have water ingress yet again. It was also implied in the last RNS that the water cut might be increasing. Last time this happened it took some months to sort out. A13 is hardly gushing either. All in all why invest here when in a months time you can probably get a better price? I’m not deramping as I see the potential but is there any point in tying up your cash here for months when it could be at work elsewhere?

  4. Get Peter and Co on some Video interviews Dan, like Regency mines

  5. me says:

    what is you and matra

  6. Stevie says:

    Dan….you have mail mate :)))

  7. Dan says:

    MTA look sound dan, another Market over reaction .

    Have you had chance to do a write up on max petroleum? I think they are the best risk v reward oily on aim over the next several months , you talk of MTA with 65m barrels , max found up to 130m barrels in oct on UTS and has hit oil 4 times since then, 13p and going after over 1 billion barrels in 8 weeks time – yes not millions. 75m in the bank , debt deferred until 2013 and already producing revenue over 5m per month that is getting ramped up this year, already doing 2100bopd
    Finding oil for fun and it keeps going down. Help be understand whats going on here mate . Michael young said an increase ten fold if they hit in august . So frustrating when they other non producers with half the potential can fly. Help a man at the end of his patience

  8. Oilrig says:


    Will you be attending the AGM and represent the blog? If you dont go i wouldn’t have thought you would have been able to convey the message here??? Going on the technical issues A12 water influx will be repaired one way or another