Petro Matad (PRTDF)

[JW_2009]

Information on Petro Matad

10th July 2018 Conference Call Audio : Audio Download


July 2018 Video Interview with CEO : Video Link


Edison July Research Note : PDF Link


Petro Matad (MATD)

Fully funded six well high impact drilling program in Mongolia, total prospective resources targeted 850 MMBO, ranging from near field E&A to basin opener potential:

1) Snow Leopard-1 well (Block V)
- Spudded 9 Jul 2018, 70 days max to complete, "results end Aug, early September".

a) 90 mmbo recoverable from two main target depths (20 mmbo + 70 mmbo) ("Snow Leopard has 2 main target sections with c.90MMbo recoverable potential [mid case])"; plus

b) There could be oil in the shallow turbidite deposits opening up an extra 200+ mmbo play even before they hit the deeper levels. ("If shallow turbidite concept is proven then a large (200+ MMbo) combination trap play opens").

c) Additionally, there are "3 or more additional stacked pay zones identified as potential upside."

There are also 13 or 14 prospects/leads of up to 500 - 600 mmbo recoverable within 35 km of Snow Leopard 1 on their acreage. ("Success de-risks 14 prospects/leads with resource potential of c.500MMbo").

2) Wild Horse-1 (Block IV)
- Spud Sep 2018, "results late Oct, early Nov".
- Targeting 480 MMBO.
- Named by Wood Mackenzie as in top 20 exploration wells worldwide to watch in 2018.

3) Block XX
- Near field Gazelle prospect targeting 13MMbo & rapid commercialization.
- Spud late Sep 2018, complete Oct 2018 (3 weeks).

4) Block XX
-TBC
-rapid commercialization
- Spud late Oct 2018, complete Nov 2018 (3 weeks).

5) New Red Deer prospect, 48MMbo in a basin analogous to nearby producing basins in Mongolia + northern China, within easy reach of existing infrastructure.
- Spud late April 2019, complete May 2019 (3 weeks).

6) Fox-1 (Block V)
- Spud early Q2 2019.
- Mean prospective resource 200 MMBO. High-quality 3D seismic late 2017.

5) Fully funded
- Oversubscribed placing in Jun 2018 provided final tranche of funding for all six wells above and management participated in placing.

- Country already produces 21,000 BOPD (2017) from fields close to Chinese border, including from Blocks XIX + XXI adjacent to Petro Matad’s Block XX. Very attractive fiscal terms).



And to put some figures on mid-case values :

2018 Mid case oil strike - 100% owned

Snow Leopard-1 90 MMBO circa 60p a share (early Sep 2018 result)
Wild Horse-1 480 MMBO circa 320p a share (Nov 2018 result)
Gazelle 13 MMBO circa 8.5p a share (Oct 2018 result)
Drill TBC - ?? MMBO circa ?,? a share (tbc...will be in Block XX) (Nov 18 result)

2019 Mid case oil strike - 100% owned

Red Deer-1 48 MMBO circa 32p a share (May?jun 2019 result)
Fox-1 200 MMBO circa 132p a share (May/Jun 2019 result)

Of course, thats not taking into account all the other prospects being derisked if they do strike oil......which adds yet more value.