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Petro Matad - Fully funded 6 well campaign for H2 2018/H1 2019

Proselenes
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Re: Petro Matad - Fully funded 6 well campaign for H2 2018/H1 2019

#250591

Postby Proselenes » September 9th, 2019, 7:07 pm

Interesting read:


https://www.upstreamonline.com/incoming ... oil-strike

Snippets...

Red Deer looking positive so far........all in line and no geological surprises.........


............The company is meantime also drilling the Red Deer-1 well in the southern part of the block that was spudded last month and has mean recoverable prospective resource potential of 48 million barrels of oil.

The well is being drilled using rig DXZ1 supplied by Daton Petroleum Engineering and Oilfield Service but has been delayed due to equipment-related issues, with drilling results due in mid-September.

Buck said progress with the well has been in line with expectations and “there have been no surprises” in terms of the stratigraphy of the targeted structure, adding that this was “positive”.

“We thought we understood the geology here and that has been borne out,” he said.
He revealed the fourth and final well of the campaign will target a prospect dubbed Velociraptor - named after a dinosaur in the Jurassic Park movies - in its Block V in the west of the country that has prospective resource potential of as much as 200 million barrels.

The company will thus be returning to the block where it came up dry with the Snow Leopard-1 well drilled last year, although Buck said this probe also demonstrated there was a working petroleum system in the tract.

He said there was additional prospectivity of around 200 million barrels on either side of the prospect that could potentially double resources in the event of a discovery.

“The block has larger high-impact prospects that we hope can build on what we have going on in the east where we hope to generate early production revenue from possible discoveries,” he said.

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Re: Petro Matad - Fully funded 6 well campaign for H2 2018/H1 2019

#250640

Postby Proselenes » September 10th, 2019, 4:54 am

If you take the 2 key upsides from what Mike has said :

Heron-1 reservoir appears to have better porosity than pre-drill estimates.

Heron-1 pay zones were encountered 5 meters shallower than pre-drill estimates.

Better porosity means the whole structure can contain more oil - higher porosity means more oil inside.

5 meters shallower means over the structure there is more oil bearing reservoir potential at the boundaries.

Those 2 key things mean that Heron may well be over 40 MMBO recoverable in size, not the Pmean estimate pre-drill of 25 MMBO.

The other key thing was permeability was better than expected, that should mean flow is not an issue and the reservoir will be able to produce at higher rates than the PetroChina wells to the North.

We know that reservoir properties get better as you go West....looks like they also get better as you go South. Gazelle is further West, and Red Deer-1 is South-West of Heron.

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Re: Petro Matad - Fully funded 6 well campaign for H2 2018/H1 2019

#250671

Postby Proselenes » September 10th, 2019, 9:57 am

From 13 minutes 10 seconds in for MATD.

https://total-market-solutions.com/2019 ... l-gas-xiv/

.

.

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Re: Petro Matad - Fully funded 6 well campaign for H2 2018/H1 2019

#250754

Postby Proselenes » September 10th, 2019, 2:33 pm

PetroChina wells produce on average at up to 200 bopd. These are all pumped wells.

It will be interesting to see the flow rates from Heron-1, will they match the 200 bopd of the PetroChina wells ? or will it be better than that given the better porosity and permeability ?

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Re: Petro Matad - Fully funded 6 well campaign for H2 2018/H1 2019

#251339

Postby Proselenes » September 12th, 2019, 11:50 am

Interview with CEO Mike Buck today :

https://www.valuethemarkets.com/2019/09 ... atad-matd/

..

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Re: Petro Matad - Fully funded 6 well campaign for H2 2018/H1 2019

#251621

Postby Proselenes » September 13th, 2019, 1:42 pm

At this juncture, if I compare what SOCO had in Mongolia (SOCO sold the producing field to PetroChina who currently own it) - it seems we have better reservoir than SOCO found.

Heron-1 has found more gross potential oil pay/net oil pay than a lot of the SOCO producing wells found.

Read through the SOCO news releases......and expect similar from MATD in the coming months and years as they take Block XX into becoming the next producing field in Mongolia with the Heron discovery.

https://www.socointernational.com/news_70

https://www.socointernational.com/news_60

https://www.socointernational.com/news_46

https://www.socointernational.com/news_35

https://www.socointernational.com/news_31


Enjoy.......given what SOCO found, what MATD have found with Heron-1 - its looking very rosy for Heron !!!!!!

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Re: Petro Matad - Fully funded 6 well campaign for H2 2018/H1 2019

#251759

Postby Proselenes » September 14th, 2019, 8:25 am

I believe the assumed flow rate after fracture stimulation for any Block XX North, Block XX South and Block V well is 200 bopd.

So with 200 bopd after fracture stimulation as the target, its is going to be very interesting to see what flow rates Heron-1 can do naturally.........and then if needed, after a fracture stimulation.

All being well we will know before the end of September.

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Re: Petro Matad - Fully funded 6 well campaign for H2 2018/H1 2019

#252092

Postby Proselenes » September 16th, 2019, 2:53 am

Well, that Friday buying spree might also mean an RNS this morning about Red Deer and having some oil in it.

Again, Mike would not commit to anything until it has been flow tested by the testing rig if they have oil shows and net oil pay.

But to have some oil shows at Red Deer would be massive massive news for MATD.

I was looking at SOCO news releases.......2 of their commercial wells flow tested at 70 bopd after frac and the other at 120 bopd.

So whilst the expectation is 200 bopd for any well after its been fracked, its still very commercial at much lower rates.

And hopefully, with better reservoir the further south and west you go, the Heron-1 well might be able to beat those SOCO figures, and by some margin, fingers crossed.

Anyway, Heron-1 news on flow testing is for later....this week is about any oil or not at Red Deer-1 location.



https://www.rigzone.com/news/oil_gas/a/17668/soco_completes_mongolian_drilling_program/

...........INDIVIDUAL WELL RESULTS

Well 19-20 was drilled to a total depth ("TD") of 2,410 meters encountering good oil shows in the Tsagaantsav formation. The well was completed in this formation and fracture stimulated, which resulted in an initial production rate of approximately 70 barrels of oil per day ("BOPD").

Well 19-21 encountered good oil shows in the Zuunbayan and the Tsagaantsav while drilling to a TD of 2,625 meters. The well was completed in the Zuunbayan formation with an initial production rate of approximately 120 BOPD.....

Ed Story, President and Chief Executive of SOCO, commented: "The success of our exploratory drilling program in Mongolia this year increases our confidence in the reserve potential of the Tamtsag Basin. We will integrate the technical data from this year's drilling program to improve our understanding of the highly prospective but complex area." .......

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Re: Petro Matad - Fully funded 6 well campaign for H2 2018/H1 2019

#252343

Postby Proselenes » September 17th, 2019, 7:32 am

Red Deer-1 results out.

Nothing there............so thats not the result we all wished for, but it was a low CoS exploration well and so not unexpected.

On to Heron-1 flow testing next and Gazelle-1 spud.

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Re: Petro Matad - Fully funded 6 well campaign for H2 2018/H1 2019

#252401

Postby Proselenes » September 17th, 2019, 12:39 pm

So what happens next ?

IMO:

Gazelle-1 spuds end of Sept.

Heron-1 testing starts early October.

Heron-1 exceeds expectations on flow rate.

Heron-1 is far bigger than Pmean estimates thanks to the structure being higher up and also better porosity. Heron-1 could be up to 40 MMBO recoverable.

Share price is around 9p levels.

Gazelle-1 strikes oil and reservoir is better than expected.

Share price over 10p levels.

Heron at 40 MMBO is worth 32p a share, Petro China farm in to Heron by agreeing to fund a bucket load of development and appraisal wells in return for 50% share.

Heron is then worth 16p a share to MATD but no development costs.

Share price now around 12p to 14p.....

Fund raising at 12p a share to drill the Raptors in 2020 and also some admin costs - MATD say this is the last one as now a production company and generating all their own cash from oil sales from Heron.

And now its 2020......time to go off to the Raptors........

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Re: Petro Matad - Fully funded 6 well campaign for H2 2018/H1 2019

#252402

Postby Proselenes » September 17th, 2019, 12:40 pm

Malcy thinking the same as me.......



https://www.malcysblog.com/2019/09/oil- ... ck-energy/


Petro Matad

Petro Matad will never go down in history as the luckiest company around and the fact that the Red Deer-1 well has come in dry rather proves that. However, the market has already forgotten the success of last week and that Red Deer was always a much higher risk prospect.

Over at Heron-1 the casing is completed and the well is temporarily suspended awaiting the testing kit to arrive. This looks like being in the next fortnight and testing is scheduled to begin in early October and completed within the month. Meanwhile the rig has moved to the Gazelle-1 well site and will spud before the end of September.

MATD has fallen over 25% this morning back to the recent lows although still well above those of January. Although Red Deer is a disappointment CEO Mike Buck is right to remind investors that it was a higher risk play and I would add that if all goes well at Heron the company could arguably be selling their own crude early next year, now that would be something to write home about…

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Re: Petro Matad - Fully funded 6 well campaign for H2 2018/H1 2019

#252610

Postby Proselenes » September 19th, 2019, 4:55 am

Edison note is in the link below:

https://www.edisongroup.com/wp-content/ ... k-XX-1.pdf

You will notice that Net Cash at end of Year 2020 (Dec 31st 2020) is forecast to be 1.5m US$

This is still based upon them drilling one well in Block V in 2020 and then zero production income, which is the current situation pending flow tests of Heron-1 and it being confirmed commercial.

Once that is done then the forecasts will be changed to then take into account revenue in 2020 from Heron.

The situation with forecasting now all hangs on Heron-1 proving commercial, from there then forecasts for 2020 will change dramatically.

PetroChina farm in has to be taken in then, and production income etc. etc. etc. etc... the outlook and status of MATD will be completely different once they have production.

We all now await the Heron-1 flow testing results - from there - things should fundamentally change for MATD as they more from pure exploration into being a producer of oil getting revenues from oil sales from Q1 2020 onwards.

.

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Re: Petro Matad - Fully funded 6 well campaign for H2 2018/H1 2019

#252641

Postby dspp » September 19th, 2019, 9:03 am

Proselenes wrote:Edison note is in the link below:

https://www.edisongroup.com/wp-content/ ... k-XX-1.pdf

You will notice that Net Cash at end of Year 2020 (Dec 31st 2020) is forecast to be 1.5m US$

This is still based upon them drilling one well in Block V in 2020 and then zero production income, which is the current situation pending flow tests of Heron-1 and it being confirmed commercial.

Once that is done then the forecasts will be changed to then take into account revenue in 2020 from Heron.

The situation with forecasting now all hangs on Heron-1 proving commercial, from there then forecasts for 2020 will change dramatically.

PetroChina farm in has to be taken in then, and production income etc. etc. etc. etc... the outlook and status of MATD will be completely different once they have production.

We all now await the Heron-1 flow testing results - from there - things should fundamentally change for MATD as they more from pure exploration into being a producer of oil getting revenues from oil sales from Q1 2020 onwards.

.


Pro,

Quite apart from the big IF of the Heron-1 flow test outcome, there is also the minor matter of any PIs being able to act/react fast enough before the local news sources and local shareholders get an advantaged position. That is why I am not in this one. Good luck with Heron-1.

regards, dspp

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Re: Petro Matad - Fully funded 6 well campaign for H2 2018/H1 2019

#252688

Postby Proselenes » September 19th, 2019, 12:50 pm

Yes, understand that.

I take the view that if its good news then it does not matter if they know before us..........hopefully Heron-1 is going to flow and beat expectations of 200bopd after fracture stimulation.

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Re: Petro Matad - Fully funded 6 well campaign for H2 2018/H1 2019

#254464

Postby Proselenes » September 28th, 2019, 1:18 am


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Re: Petro Matad - Fully funded 6 well campaign for H2 2018/H1 2019

#255529

Postby Proselenes » October 3rd, 2019, 7:17 am


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Re: Petro Matad - Fully funded 6 well campaign for H2 2018/H1 2019

#256953

Postby Proselenes » October 10th, 2019, 1:55 pm

Just a reminder what is at stake here with Heron-1.

Size estimate on Pmean pre drill is 25 MMBO. Worth 18p a share, and would be 9p a share post any 50% farm out to PetroChina where PetroChina then pay for the development wells.

MATD have 3 pumps in stock, so if the well flows they can simply put a pump in place and start production very very soon, the CEO hoped maybe before year end, although Q1 looks more likely, but who knows.

The reservoir in this southerly location has better permeability and better porosity than pre drill estimates. This means that more oil and easier to flow. Therefore potentially the 25MMBO might be higher.

The reservoir was also encountered higher than expected, this means that there should be a greater area as there will be more before the water/oil line is hit.....bigger area means more oil as well.

Potentially Heron maybe 40MMBO....which would be 29p a share to MATD, or 14.5p a share post a 50% farm out to PetroChina.

Thats ignoring Gazelle where drilling results are due end of October.

So the upside is significant......if Heron-1 flows oil.

And the flow tests results are due before the end of October all being well.

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Re: Petro Matad - Fully funded 6 well campaign for H2 2018/H1 2019

#257041

Postby Proselenes » October 11th, 2019, 12:06 am

20% rise...wonder if there is a leak.

If there is any leak it will not be Gazelle. Gazelle will undergo the same process as Heron........there will be news on oil shows or not and that the well has to be tested........ with the same testing rig currently at Heron.

Therefore, as with Heron, any declaration of commerciality can only come after flow testing with the testing rig.

If there has been any leak.....it will be a leak of flow testing news.......perhaps the first zone tested has flowed well........and thats now leaking. Each zone will be tested on its own in isolation of the other zones in the well to be tested.

Results of flow testing will be released when all zones are tested.....so it may be some time away yet ?

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Re: Petro Matad - Fully funded 6 well campaign for H2 2018/H1 2019

#258483

Postby dspp » October 17th, 2019, 1:55 pm

Bad news RNS http://irpages2.equitystory.com/website ... e=29720051

"Results of drilling/logging of Gazelle-1 and operational update

Petro Matad Limited, the AIM quoted Mongolian oil explorer, announces the results of drilling and logging operations at the Gazelle-1 well in the north of Block XX, eastern Mongolia and also provides an operational update.

Gazelle-1

The Gazelle-1 well has been drilled with the DQE Rig 40105 to a total depth of 2550 metres and wireline logging has been completed. The Lower Tsagaantsav reservoir objective was encountered at 2280 metres, 20 metres deeper than the pre-drill prognosis. The interval penetrated was shale dominated and no hydrocarbon pay was identified on the logs. In the Upper Tsagaantsav reservoir objective, good wet gas shows were recorded throughout a predominantly shale prone section. 3 metres of net oil pay in good quality sandstone have been defined on the logs.

Casing is now being run on Gazelle-1 and the well will be suspended pending further evaluation.

The Company's pre-drill interpretation of this area highlighted the possibility for a 'pinch-out' of the Lower and Upper Tsagaantsav sands, which could set up potentially material stratigraphic traps in the southern extension of the Tamsag Basin. The Gazelle-1 information will help better define these traps and their potential size within Block XX.

Operational update

Testing operations at Heron-1 are progressing on schedule.

In light of the additional and ongoing expenditure on well testing at Heron-1, the Company is postponing its plans to return to drill in Block V during 2019. The Velociraptor prospect in the Taats Basin, along with a newly developed set of prospects in the neighbouring Tugrug Basin which, like the Taats, has good evidence of a working petroleum system, are considered to be attractive candidates for drilling and will be the subject of further operational updates.

Mike Buck, the CEO of Petro Matad said:

"The results in the Lower Tsagaantsav formation at Gazelle-1 were unexpected in light of the data from other wells in the area. However, the absence of sands in the Lower Tsagaantsav and the presence of a thin, but good quality pay zone in the Upper Tsagaantsav reservoir support the case for potentially significantly sized stratigraphic traps at the southern end of the Tamsag Basin within Block XX. This will be a focus of the post-well evaluation which will commence shortly, once the testing operations on Heron-1 are complete.""


- dspp (not a holder !, good luck all re Heron-1 tests)

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Re: Petro Matad - Fully funded 6 well campaign for H2 2018/H1 2019

#258526

Postby Proselenes » October 17th, 2019, 4:35 pm



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