It’s great to see Matra on a charge. The phoenix is beginning to rise as confidence slowly returns. It’s a no-brainer to those who have stuck with the company. Yes at the moment some of the genuine holders of stock are currently down and showing a paper loss, (Myself included) we could have jumped ship at the bottom but chose to stay with the company those who stayed on board are now seeing the benefits of a stock that has been unjustly mis-represented begin to claw its way upwards.
Lot’s of emails in the bag over the last week on this one. The major concern being as you all know the water problem. From what I can garner on these types of drills in this region it is a common enough problem. I spoke to Matra last week and put some points to them,one being why other companys operating in Orenburg don’t seem to ENCOUNTER WATER. The answer was enlightening. Apparently they do. The difference BEING that most of the companys are operating dozens if not hundreds of wells(TNK-BP) they just do not SEE THE NEED TO REPORT IT. Matra are a small company with two wells so it’s material to the company. When Matra are fully operational with a full field then one well out of lets say fourteen encountering water etc wouldn’t be such a big deal and would have little or no effect on the share-price. There’s no doubt that the company are as we speak arranging finance of some kind to fund A14/Seismic. Delek invested here at 3p which would indicate to me that they see MTA significantly higher on successful drilling. Of course production will come and no doubt OIP will significantly increase. At the moment it’s a waiting game. Make no mistake the Phoenix is rising here. 10p and beyond could easily be hit when A12/13 come back on production with expectation of A14 being a smooth drill due to lessons being learnt.
There are valid questions that investors need to ask their brokers/sources; What price Matra on full field production? What price Matra on 30,40,50,60,70,80 million barrels? This company has the oil and more than likely the OIP figures will at the very least double. It’s not so long ago that Peter Hind was briefing the press that the field contained between 60/80 million barrels. Of course expectation has now been dampened down by Matra mainly due to the technical difficulties with investors pulling their hair-out in frustration at the water! There’ll soon be back over 3p AS EXPECTATION drives the sp. When production comes THEY WILL ROCKET.