Petro Matad (PRTDF)

[plumo]

[[ Thanks to Malcy's Blog ]]

So, where does all this recent activity leave MATD? The first thing that I have to call out is the discount that the money was raised at, first glance it was 36% based on the previous close but that moves to 54% from the day of the exploitation licence or 60% from the high. Whilst I know that it was clear that MATD needed to raise some money and one can’t assume there was a leak, which incidentally I don’t believe, it should have been done along with the new licence process.

Grumble over, I’m really delighted that Petro Matad have now received the exploitation licence and are well funded to get stuck into the exciting Heron 1 area and prepare for production as well as to drill the H2 and H3 wells. The drilling window means that the company can now prepare for a bumper programme next year with ot without a partner.

On that subject the company are ‘resuming conversations’ with potential partners and there are a number out there I understand. MATD were very happy using PetroChina rigs in previous campaigns and they would surely have an advantage over other potential partners as they also have people, facilities, rigs and of course export lines that they can call on.

At these levels and with a good list of new and existing shareholders I’m sure that from today’s 3.375p level the shares will be good long term value after a bit of indigestion after this issue.