There’s a fantastic opportunity here for the canny Investor. Matra Petroleum look set to astound the market over the next few months. News of the
arrival of the workover rig (foretold here) at yesterdays AGM may go some way to calming the poor weary soul that is a genuine Matra investor. Patience looks set to be rewarded.
As I understand it the whole field is on course to be proven up. Figures being bandied about by the company range from ML Recoverable Contingent Resources SPE Guidelines– 15.1 million bbls.. ML Full Field Deterministic Resource – 23.7 million bbls..ML Prospective Recoverable Resources – 29.6 million bbls..High Case Prospective Recoverable Resources – 84.1 million bbls. The new seismic could and should increase these figures. There’s more oil here and the fact that TNKBP are operating a well on the margins of Matras’ licence block bodes well for the company and share-holders the TNKBP well is producing some 1800 bopd which further points to the viability of Matras assets. The problem at A12 (Current water leak) may be overcome using a production packer. The production rates seen in well-12 are exceptional for the region where much lower rates are typical and economic. The rates seen in well-12 make the field economically very attractive and the best areas of the reservoir are yet to be drilled. So says the company. Bring on A14 which is thought to be targeting a sweet spot which could and should transform the feisty little oiler into … And I’ll say it again “One of the best oil plays around” There is HUGE upside here in existing asset value which over time will transform and filter through to the sp. Get your eyes on here. The workover has begun! Good news on A12 LOOKS LIKELY. News on A14 and seismic has the potential to TRANSFORM this stock. You HAVE ALL BEEN WARNED! Watchlist them Now!
Viva!
Daniel
Dan
What is a Production Packer?
N
A production packer?Depends what type. Haliburton make the best in my opinion.The one used here will provide a seal between the outside of the production tubing and the inside of the casing, liner, or wellbore wall.
Basically that’s it, kind of like running a tube inside a tube to form a seal.
Dan
This is key then. In 2008 the water leak took months to sort out. These packers can be installled in just a few days (assuming no problems – I researched it). This is obviously good news and I’m back in. I think we mayy get news over the next week or so. If teh packer works we are back to 1000 bpd and the SP will be up and away.
N
Quite similar to a fudge packer but higher authority
You should be Matra’s PR guy Dan!
That is exactly what they are doing Dan.
The A!2 rig is being set up this weekend and an approx. 3 week timescale given for the work.
Dan you have put your reputation on the line here and just before your web site goes live! if you get this wrong!! not saying you will but if they don’t deliver the goods then who knows what the pi’s will think!! but if you get it right u will have a lot more pi’s registering on your site so I would say heads you win tails the Market wins All IMHO
Hi Dan,
I’m an investor from Alaska, currently working in the UK. I’ve been following for a while and want to say that your blog has been a helpful addition to my research tools used for my recent ventures in to the AIM market.
Would like to know your thoughts, if any, regarding the announcement from Bayfield Energy regarding their upcoming listing on AIM. Seems that they have a strong background and CEO. Thanks!
~Ben
Right…..look at the energy small cap sector its not been driven by company news, its been driven by global events (macro ones).
To put money in equities now is to say the following a) Greece will not default in the next six months b) Chinese inflation will not cause a rate rise and c) to make some fairly heroic assumptions concerning US/EU/Asian monetary policy.
Now I’m not saying Greece will default in the next six months, but if it does, whether Matra have sorted out the water ingress or not, it won’t make a damn bit of difference. Fallout will be quick and painful (even if not long term). Then again if the can is kicked down the road (likely) then Matra specific news might push the price up.
Essentially anyone investing at the moment is taking two primary risks a) company specific and b) financial sector specific (i.e. health of Eurozone) – you could add a 3rd here monetary specific risk (but this is a more long-term risk).
In any event, what is almost beyond debate is that Greece will default at some point, even if it is just a technical default or selective default. And at that point things will look ugly…how ugly and for how long depends on the timing of the matter.
Hi Dan – if so confident why did you pick SLE and CAD and not this for your 100000 to 1million challenge?
Both were chosen using slightly different reasoning/research. I do use several similar methods when evaluating potential. Each method contains an element of risk there’s no such thing as a 100% certainty in the market. If I’d of chosen Sefton I’d be half way there but hindsight is a great thing. Still holding my own in the challenge (just).
Dan