Replies to post #377 on Petro Matad (PRTDF)

[Tamtam]

This is what I found although almost a month old

Preliminary results for year ended 31 December 2011

Petro Matad Limited ('Petro Matad' or 'the Company'), the AIM quoted Mongolian oil explorer, announces its audited results for the year ended 31 December 2011.

CHIEF EXECUTIVE OFFICER'S STATEMENT

I am pleased to present Petro Matad's Annual Report for the financial year ended 31 December, 2011, and to comment more generally on the events of that year and up to the date of publication - 29 June, 2012.

2011 was a year that ended in disappointment for the Company and its shareholders, and the value of Petro Matad has dropped even further during the first part of 2012. The Directors experienced that sense of disappointment very keenly. While it is proper to reflect somewhat on the past year's challenges with the benefit of hindsight, this report will concentrate more on relaying to shareholders that the Company has taken positive steps to ensure that Petro Matad is better placed to address the exploration risks that are inherent to our business.

Petro Matad operates three Production Sharing Contracts (PSCs) over attractive and extensive exploration areas in the emerging country of Mongolia. Our Company's largest shareholder is the biggest petroleum products importer in Mongolia (Petrovis LLC). In 2008, Petro Matad was the first substantially owned Mongolian company to list on an international stock exchange.

Following a series of fund-raisings, the Company's main focus was the exploration of its most advanced prospect at the time, the Davsan Tolgoi anticline from 2010 through to 2011

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Unfortunately that exploration proved unsuccessful and the Board and management are now concentrating on rebuilding and refocusing the Company so as to better explore the remainder of its vast acreage. The Directors believe that the changes that have been wrought by the Company position it advantageously so as to properly exploit the opportunities that its assets represent.

As part of the process of introducing positive changes to Petro Matad, the Company took advantage of Board and management resignations or retirements and proactively sought to strengthen those and other aspects of the Company. In addition, the Company decided to supplement its own in-house technical team with an independent firm of geoscience consultants, RISC Pty Ltd ("RISC"), to assist in the examination of previous results, assessment of assets and be a part of further planning and programmes.

The Directors believe that with the above initiatives the Company is now in a position to productively explore the sometimes difficult frontier environment in which we operate, and to apply experiences from the past. Additionally, we consider that the individuals we have brought together, when combined with the existing Directors and management and technical teams, have created a Company that is in an excellent position to progress forward.]


The current share price causes the Directors and me appreciable concern, particularly when combined with the parlous state of the equity markets in general, the relatively depressed oil price and the widespread uncertainty in the world financial markets.

The Directors and staff have identified the areas we can influence and have applied and will continue to diligently apply ourselves to managing and shaping those elements of our business.

There is no doubt that Petro Matad has meaningful exploration assets. As outlined in this statement, the Company has spent time and resources over the past six months, rebuilding an appropriate and talented team. We have also sought professional outside advice as necessary. All of this has been aimed at ensuring that we are in a position to further examine those assets and assess a technical path forward, accompanied by sensible financing or partnerships to be able to implement those programmes.

We believe that Petro Matad is well placed to continue its exploration activities in Mongolia, although we continue to be watchful and proactive. We have great confidence in the democratic institutions of the nation, and believe Mongolia is on an irreversible road to a free-market economy with all the benefits of a resource rich country.

I look forward to the challenges of the future and I have full faith in the people that have stewardship of the Company on behalf of the shareholders. The Directors, management and staff are all united behind Petro Matad and applying their great talents, experience and work ethic for the Company's good. I wish to thank them for their past work, and look forward to working with them to build an even stronger Petro Matad in the future.

I would like to thank Mme Oyungerel, our Chair. She has always been a supportive pillar of strength and wise advice, and even more so in the past eight months. Finally, I wish to relay my appreciation, along with those of the Directors to our loyal shareholders

[douginil]

From the Auguat 23rd OilBarrel Newsletter

News: August 16, 2012
Petro Matad Discards Its 2012 Drilling Programme To Make Preparations For A Successful 2013 Season

For larger companies with a wide range of assets and a successful history, an exploration disappointment can be quickly forgotten with new drill results, development progress and higher production moving the market’s attention on to something else. Junior companies, operating on threadbare budgets with fewer assets and opportunities to correct its mistakes, are forced into a state of extended purgatory and it is here Petro Matad has existed since it met stubborn resistance at Davsan Tolgoi in 2011. The company is obviously more cautious now and there have been several management changes since its review of the 2011 drilling programme, but Davsan olgoi retains its allure and Petro Matad is far from giving up on the licence just yet.



Davsan Tolgoi is located in Block XX in Eastern Mongolia which overlays the Tamtsag basin – a basin it shares with the adjacent and producing Tolson Uul Oil Field. The earlier unsuccessful drilling took part in one area covering approximately 100 square kilometres, so with literally thousands of square kilometres as yet unexplored Petro Matad still believes it can strike black gold.

After discussing plans with its recently employed consultants RISC, Petro Matad has suspended any drill plans for the rest of the year in the hope of developing a more balanced and lower risk exploration drilling campaign for 2013. The company expects to do this through the use of both basin specific and wider studies, including defining hydrocarbon play fairways and re-processing / interpreting some key seismic lines. However, earlier use of geochemical data and structural mapping has indicated a significant area of hydrocarbon maturity in the area west of Davsan Tolgoi (West Tolgoi) and on trend with Tolson Uul to the north. A second smaller area of potential hydrocarbon maturity east of Davsan Tolgoi (East Tolgoi) was identified and current seismic mapping is being focused on confirming these leads as potential drill targets.

The Lag Nuur thrust fault play even further to the east has also shown promise, and after further study, will likely figure in the options for drilling next year.

Blocks IV and V are located together in the Valley of Lakes region of Central Mongolia. The area is well and truly frontier country in a hydrocarbon exploration sense with such programmes having previously been virtually non-existent. Both blocks have oil potential with Block V having seen more activity in the form of surface / subsurface sampling, the drilling of a core hole, and seismic having revealed two major basins (Taatsiin Tsagaan Nuur and Tugrug) each 30-35 kilometres wide. Additional studies are now scheduled, leading up to the running of further seismic in the winter months, and an initial drill programme next year.

Where Block V has attracted more attention on its conventional targets, the roles are reversed for their oil shale potential with the Khoid Ulaan Bulag (KUB) target on the southern boundary of Block IV having shown the most promise of the 14 currently known occurrences of oil shale. Two shallow core holes were drilled on KUB with assay results indicating the high and potentially commercial values of organic content and yieldable hydrocarbons. A 50 kilogram sample has been sent to a batch retort testing facility in Colorado, USA which will determine the quality and character of possible hydrocarbons, while preliminary studies have suggested both in-situ and ex-situ processing may be possible. The company has appointed a leading authority on oil shale (Dr Jeremy Boak) as its prime consultant, but Petro Matad CEO Douglas McGay is careful to point out that while “...the potential of the resource and the energy needs of the region compel us to continue evaluating it. The Company has taken care not to detract from its conventional oil exploration efforts in this and other Blocks”.

A new CFO, COO, exploration manager, IR/PR advisor and joint corporate broker are recent changes made by Petro Matad in an effort to more closely align its skill set with its project status, as well as improve communication with stakeholders. As its share price has shown, there is a lack of confidence in the company’s ability to achieve its goals. However, with fresh faces focusing on more manageable objectives, even the prospect of defining commercial resources in frontier land can become less daunting. Risky, yes, but also high reward, and the Petro Matad has the opportunity to banish the memories of its disappointing drill results of last year through the careful planning of a successful campaign next year.