Hi Zouf,
From the lack of posting over here, Petro Matad still is a VERY UNKNOWN small E&P. That's for now. Soon they will be on the big stage. I look forward to it. From one of the paragraphs in your article, ....
" These factors have contributed to a major lift-off in the Mongolian petroleum sector; from a relatively modest baseline, investment began to grow significantly in 2005 and is currently running at some $600m per annum. Most of the activity has been focussed on drilling: 359 wells had been drilled by September 2008, and 88% of these had oil shows. Daqing Oilfields (a Petro China subsidiary) has alone drilled more than 340 wells including 207 wells in 2008, over 90% of which were successful (defined as “oil shows”). Whilst Mongolian oil production is still at a relatively early stage, officially being classified as “test production”, Daqing – some of whose wells are less than 5km from Petro Matad’s Block XX – entered 2009 at about 3,300 bopd. "
.... it appears Petro China dug about 700 holes in the Block XIX, juxtaposed and due north or Petro Matad's Block XX with a success ratio of about 89%. That's an incredible success ratio, and what's more nonplus is the fact that it's in the same basin as MATD's block, and an earlier article stated that the oil in XIX has gravitated down into Block XX. No wonder MATD struck oil on their first wildcat.
I took the time to apply a little more due diligence. Petro was initially swimming in Mongolian oil in the period of years 2005-2008.
Around that time Petro China ( PTR )had a share price around $10-11 dollars/share. THEIR SHARE PRICE INCREASED TO ABOUT $250 DOLLARS PER SHARE !! Wonder what will happen to Matad's share price ??
Anytime an unknown oil and exploration company makes a discovery several times it's own size, THE SHARE PRICE GOES BESERK !!
Red
