Petro Matad (PRTDF)

[douginil]

Why Its Worth Gambling On

Summary

- Petro Matad explores for oil in Mongolia.

- Petro Matad have two oil wildcats in the next 8 months.

- BG was their partner until Shell bought BG and exited their blocks.

- Shell is paying an exit fee to Petro Matad 1.3 times Petro Matad's Market capitalization.

Petro Matad (OTCPK:PRTDF) (MATD: London) is a microcap onshore oil exploration company with exploration blocks in Mongolia. It has two upcoming (next 8 months) oil drills in a region abandoned by the Russians after the fall of the Soviet Union, which was an oil producing region but it remains totally underexplored.

They have just received $10 million from Royal Dutch Shell (Shell) (NYSE:RDS.A) (NYSE:RDS.B) because Shell, as Petro Matad's partner on the blocks, exited the blocks in April this year due to corporate restructuring after the Shell-BG Group takeover. That $10 million, together with an additional $5 million which will be paid once the Mongolian petroleum authority assigns the full block ownership back to Petro Matad, represents 1.3 times Petro Matad's current micro-market capitalization of only $11.3 million.

This 1.3 times "cash-backing" of Petro Matad's net worth, Petro Matad now owning 100% of blocks Shell-BG were 78% invested in and the fact that Petro Matad now have enough cash for 2 oil drills on their blocks in the next 8 months, make compelling reasons to take a small speculative punt on the stock.

Read more at:

http://seekingalpha.com/article/4002113-petro-matad-worth-gambling#alt3Petro