Petro Matad (PRTDF)

[douginil]

Petro Matad

June 22, 2021

[[ Thanks to Malcy's Blog ]]

Petro Matad

Results from MATD today, totally irrelevant but the statement reminds us that the period was all about Block XX and the focus on progressing the exploitation licence. The CPR on the northern part of the licence which includes the Heron structure added some 20% to internal estimates and the MMHI approved the reserves report.

As one might expect the company kept a close eye on costs and had cash of just under a million dollars at year end and showed a net loss of $3.2m. Post the period end saw more of the same, the licence application ‘continues to progress’ and the Company and the Mineral Resources and Petroleum Authority of Mongolia (MRPAM) have agreed the area of Block XX that will be retained under the Exploitation Licence which includes the entire extension into Block XX of the proven and producing Toson Uul Basin.

To ensure funding of the Company through the Exploitation Licence application process and the preparations for the next phase of operations, the Company’s largest and founding shareholder, Petrovis Matad Inc. (Petrovis) agreed to make available to the Company a loan facility of up to $1.5 million, against which the Company can draw funds as required. $0.45 million was drawn in June 2021 to meet ongoing running costs.

Mike Buck, CEO of Petro Matad, said:

“There is no doubt that 2020 was a challenging year due to the disruption triggered by the global health pandemic. Despite the difficulties, the Company worked hard throughout to progress the application for the Exploitation Licence for Block XX through a complex and lengthy process. We appreciate the patience that many of our shareholders have shown as we continue to work with the Mongolian Government to secure the requisite approvals. The formal application for award of the licence has now been submitted to the Ministry and we are working with the relevant departments as they process the necessary documentation.”

Whilst the situation at MATD sometimes seems to be like running fast just to stand still, the team out there have done a great job in keeping the licence progress continuing throughout the Covid pandemic. Patience should be rewarded and when it does my feeling that the company can deliver under Mike Buck will return. Accordingly it must be a prime vaccine play and the only uncertainty will be the timing.


Read at:
https://www.malcysblog.com/2021/06/oil-price-petro-matad-falcon-and-finally/