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.