Matra Petroleum. It can only get better!!

Impact of water in a water-surface

They'll get there in the end!

I’ve just spoken to the company at great length and passed on the thoughts (those that are printable) of some of the genuine investors. There’s no doubt that it’s been a bad day for the company the Blog and investors but some of the doom and gloom merchants are way off the mark. Yes it’s another pisser that the water has not been isolated but if you look at where this company were 12 months ago to where they currently are they are in a much improved position. Production  and cash-flow are now ongoing, last year there was NO OIL whatsoever being produced this year they are producing oil and have a steady cash flow. Remember oil exploration and production are never plain sailing there will always be ups and downs. This is another down in a long line of downs permeated by the occasional up however progress here is real and lessons have been learnt.

If we had got dry oil here today this sp would of trebled!

According to the company the project is on track and the field is commercially viable and on that basis they will continue. It needs to be remembered that the oil is there and there’s substantially more than 15 million barrels. There are several possibilities being investigated by the company for the failure to isolate the God awful water one is that the production packer has moved after the seal was tested. I have spoken to our drilling expert from Schlumberger and the company regarding just where this water is coming from. I’m of the opinion that the water has come from the original drill in 2008.  Matra drilled into the OWC as part of the license conditions. From Sept’ 2008 this hole was left open allowing water to enter into the reservoir until it was cemented in 2010. I put this to the company and they have confirmed that this is one of the possibilities now being investigated using the data gathered. This is very important as if it is this then as the well continues to produce over time the water will begin to reduce AND THE OIL INCREASE; the company are monitoring the water to oil ratio. The Matra planning has always been to have a mixture of wells on stream flowing at various rates from 200bopd through to over 1000bopd. In their opinion at present A12 is one flowing at 200bopd and IS COMMERCIALLY VIABLE , oil production from A12 could increase if the water has come in from the OWC BEFORE IT WAS CEMENTED. I think that it is highly likely that water from the OWC entered into the reservoir and is now being pumped up. My opinion. Matra are still trying to eliminate the water as we speak so it’s an ongoing problem that is still being addressed. Gideon/Delek have been informed and are still very positive on the Matra future. I can understand everyone’s annoyance but that’s how it is with Matra it’s 3 steps forward 2 steps back. I’ve topped up my holding by another 450,000 and will purchase another 450,000 tomorrow if they drop further. I really believe that Matra are trying their best for all concerned and they are making progress. They will come good and succeed for their investors who should give them 6 months grace. Of course some have a completely different opinion that’s their right. I spoke to the company and gave them a tough time particularly regarding the information put to them 10/12 days ago regarding the water problem info passed by our Russian contacts  (who have once again proven to be correct). This information was rebutted by the company. Can’t say I’m happy about this but we move on and reassess.

Apparently the A14 drill is on track and seismic suggests that oil quality is 50% better. All knowledge gained from A13/A12 should significantly decrease the drill risk. I’m still holding and expect at least 5/10p to be hit.  I’m with Delek! It’s a great roller coaster of emotions but I wouldn’t have it any other way! Buy Matra! They’ll soon be back over 2p once the great wailing and gnashing of the teeth grinds to a halt.

Viva!

Dan

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  1. Don says:

    Re. “Apparently the A14 drill is on track and seismic suggests that oil quality is 50% better.”
    Q. How can seismic identify oil quality? Surely you mean wireline? And if it’s mid-drill, are they using LWD?

    • Brokerman says:

      They have compared seismic to seismic from a very similar drill 5km away which is almost identical at that site the oil being produced is better quality and is currently producing approx 1000 bopd

      Dan

  2. Solomon Karr says:

    Give up on MTA mate, give up, don’t average down. Buy Bezant Resources instead. 10 bagger.

  3. OB1 says:

    Thanks Dan,

    What I dont understand is why the flow rate has dropped, have they choked the well to a lower level due to the water ingress?
    If, and its a big if, the source is from the initial OWC from 2008 will flow rates increase naturaly?

    Thanks Ob1

    • simon c says:

      i believe the oil needs lifting using water and gas injection which is something MTA should consider. This method will ensure purer oil and split the wate,r oil and gas naturally. This is of course not cheap but to do the job right and to improve the oil this must be considered.
      I personally will be buying more at this knock down price, working in the oil and gas industry it is amazing seeing how things can change over a few weeks, once production ceases sometimes there is always a big overkill, prime example was BP when they had that explosion….and now look at there SP compared to when the disaster happened!

  4. Bernard Butler says:

    “Daniel never gives a buy or sell rating on any stock investment.”

    “Buy Matra!”

    Two extracts from this very page – I’m confused!

  5. Tank Commander says:

    DAN ….. what warning about the water ingress>>>>Sorry mate you need to also look at the RSN from MATRA re bopd figures… you are missing facts.

    • Brokerman says:

      I spoke to the company 10/12 days ago after our contacts passed on info that the water problem was still causing problems this was refuted by the company hence why we never posted it. Today this was put to them where upon they admitted that our source at the time had been correct.

      Dan

      • spike says:

        Surely if you had a warning from your contact about the water you would have posted it with a response from MATRA to deny it then we could have decided? It seems a bit strong saying your contacts were prooved right when you never told us the bit they did get right?

        • Brokerman says:

          Well not really. I specifically put it to the company. They refuted it. I put this to the company once again yesterday. They conceded that at the time I put that to them I was correct. I did not post this info for two reasons. 1/ The company had just refuted it. 2/ The forum is open to the general public even with a password which causes a delay the crux of the news/info gets disseminated online directly attributable to the blog.. The rns news was correct and the news on oil being pumped was and is correct. Thats the choice we make. Our contacts were spot on. Matra accepted this yesterday.

          Dan

          • BoLtBlUe says:

            BMD, you could have simply said that your contact stated there was still a water problem, but that the company refuted it when questioned. Nothing wrong with that statement. Either legally, or morally. How else do you expect people to believe a word you say when you are constantly shifting the goal posts to imply your sources (if you have any) are good?

          • Brokerman says:

            No you’re completely wrong. The only goal posts being shifted are in your imagination. If we had reported before the company and after the company had refuted what we had asked them then we would of been in a perilous position as you well know. You have to go back to the actual time and forget what you now know. Faced with a company rebuttal we kept faith with it. That’s the way it goes. And you simply miss the whole point of the Blog. We don’t ask people/investors to “believe us” The purpose of the Blog is to get investors to research and become active re’ their investments!!! We give an opinion if you want to check it out then research it. Common-sense. It’s in black and white on the left side of the Blog in plain sight. So please do not attempt to twist or manipulate facts that are patently obvious. It’s shameful. You control your bank accounts and your investments. You receive the benefits, gains or losses. You write the cheques you pay the bills. Common sense. If you were paying for independent financial advice and your investment bombed you’d have no recourse to law that’s how the market operates. It is YOUR RESPONSIBILITY enshrined in English law. I f you’re not prepared to accept or take responsibility when an investment disappoints then you should not be involved in finance.

            Dan

            Dan

  6. 13thMonkey says:

    Thank you Dan. Do you think that there is an issue with the competance of the people Matra have working on the wells, if not with the management themselves?

    Personally, I’m holding and hoping they can get things sorted.

  7. joseph says:

    thanks for your efforts dan,nothing is ever what it seems with this lot.You have spoken to them at length and are happy with what you have been told.If they will freely release reassuring info to you WHY WONT THEY TELL THE MARKET ????? AGHH!!!!! No time scales for a fix,plans for a fix or barely anything remotely positive came from this mornings news.I would have sold but nobody wanted em !!!!!!!! The feeling i had from the rns was that they were going to put a12 down to experience and casually move onto a14.Have they got any money for a14?that will be the next kick in the teeth!!!!

    • Brokerman says:

      No they are still working on it. If it is water from the OWC After the A12 drill in sept 2008 then it will gradually decrease over time as the drill into the water has now been plugged/cemented. They’ve got the oil the problem is how to stop the water and locate where its come from.

      Dan

  8. Goldbug says:

    Why invest in a company who tell you one thing and do another?
    In all small companies one of THE most important things is management. Theres plenty of companies out there to invest in, so you do need to know when to cut your losses and move on.

  9. Alan C. says:

    Some companies have more bad luck than others. Though I am not skilled in this particular type of work, I have had experience with other difficult projects and I have said it before and I’ll say it again, skilled work needs skilled and experienced engineers. The symptoms with Matra point to that they have perhaps been learning their skills on the job. Not the best way, but if and it is a big if, if this workforce are the careful and dedicated type, they will get there eventually. If not, this could do with some real skills being sought for the work in future.

  10. Jules says:

    What a terrible day, what with encore bumbling around at 60p and now matra. I appreciate the update Dan, but am finding it very painful to sit through this process. Sadly I don’t have 450,000 to reinvest!

    • Brokerman says:

      Well just hang on in there they will come good and they are improving in fits and starts. You only lose when you sell. On paper i’m down 27k am i WORRIED/ nOT IN THE LEAST THAT’S BECAUSE i KNOW THAT THEY ARE SAT ON AT LEAST 15 MILLION BARRELS OF OIL MIN WITH A FAIR OLD CHANCE THAT THEY COULD at the least double triple or quadruple this.
      The problem they have is the water ingress they must come up with a different strategy to overcome this. Gideon Delek is not in the least concerned his company are heavily invested at 3p and above.

      I’m disappointed but I know all will end well.

      Dan

      • Jules says:

        Thanks Dan, appreciate your response, I know you must be swamped. I’ll donate some money when they come good!

        Cheers

  11. Lt says:

    How are they going to fund A14 – further dilution? 200bopd (if it continues) equates to no more than £584,000pa. How much was the drill, the work overs, the side tracking? How long before they shut in A12 again as they cannot continually run the well with corrosion (this was mentioned at the AGM)? How are they managing to separate the water from A12 as they do NOT have that facility on site (yet)? I doubt they will be achieving $13 barrel with having to deal with the water cut. All in all it’s not looking that good Dan. As for Gideon Tadmor from Delek, whoever you spoke to at Matra were hardly going to tell you anything but the fact that he remains positive. The problem is not many people trust Peter Hind or Neil Hodgson hence one of the reasons for todays drop in SP.
    We can live in hope!

  12. tsubie says:

    Sorry, SEISMIC has been completed on A14 and that suggests the OIL QUALITY is 50% better?!

    Are you 100% standing behind this? where has this idea come from?

    • tsubie says:

      OK, you have failed to comment, perhaps you will reply to the house brokers statement that would seem to contradict your own?

      Matrix: “Near-term plans include the acquisition of a 3D seismic survey and the drilling of well-14 later this year.”

      yet you state seismic has been completed already for A14.

      BMD: “Apparently the A14 drill is on track and seismic suggests that oil quality is 50% better.”

      Would love to hear the explanation, thankyou kindly.

      • Brokerman says:

        First of all let me educate you TSUBIE. I never failed to respond some times events and comments back up I can’t always answer. Yes it’s disappointing that they are only producing 200bopd. In answer to your rather naive question. If you telephone the company and speak to them respectfully you’ll find that Matra have seismic in hand on A14 they also plan to shoot more seismic and over lay it on the seismic they already have. Now here’s a good point for you to address where in the article does it say that “seismic has been completed already for A14?” It doesn’t it clearly states thus; “seismic suggests that oil quality is 50% better” If you check out one of the MTA posts you’ll find that Matra have seismic on A14 from the previous holders of the licence (confirmed by the company to me several months ago) and again this afternoon. So the next time you feel like posting please read the article several times this way it should permeate through. You are like all more than welcome to post on this site but keep it readable I enjoy lively debate but some times I am constrained by having to work.

        Dan

  13. jh78 says:

    Not being funny dan but PH lied to you 10 days ago so why do you believe what he has to say today ????
    PH has seriously made this site look stupid and probably ruined any chance you had of attracting paying subscribers.

    • Brokerman says:

      It wasn’t PH who I spoke to. This is the question I asked (taken from my notes). I asked is there any truth to news that I’ve been given from our source in Russia that the A12 DRILL WATER PROBLEM FIX HAS FAILED? ANSWER ” No THAT’S NEWS TO ME” i ALSO REITERATED THIS TODAY where it was conceded that in actual fact the sources information was correct! However it was made clear that they were at the time of my asking bound by fsa regs. If I’d of posted this info on an open forum at the time and the opposite was true ie they hit 1000 bopd then I’d of been in serious trouble re’ allegations of shorting from the crazies that surf the net. The rns came as we said and oil deliveries were and are ongoing. We kept faith with what the company were telling us. If that’s a crime then lock every ceo and chairman up! It’s still all to play for here and they will climb back up. Time is the key.

      Dan

      • BoLtBlUe says:

        BMD,

        The correct response to your question to MTA, under FSA rules, would have been a complete refusal to comment…NOT:
        “No THAT’S NEWS TO ME”

        By saying what they said they were implying the water ingress problem was remedied! This whole thing stinks the more I look over your comments

  14. Dan says:

    Maybe a good time to buy at these levels . Over reaction by the Market .

    Any chance of an update on mxp dan ? Update to shows even more oil and increased production 60% just from this tiny shallow. Finding oil on almost every well in 2011, is this about the 7th time they have struck oil this year ?
    75m in the bank fully funded going after 1 billion barrels on the deeps in a few weeks time yet only 13p and 100m Market cap . Production being ramped. Yet DES can fly to 180p on hype alone never found a drop . Max is a producer doing 5m per month revenue . Ten bagger IMO

  15. bren says:

    Hi Dan, severely dissapointed here having topped up quite a quite at 2.5p; my gut instinct told me MTA werent to be trusted, after all time and time again they have screwed things up; what is supposed to be a very basic fix turns out to be a nightmare; can they get anything right?? its taken years to get one well to produce a bit of oil and water, that is a complete joke tbh. If I ever break even here I will be selling out. If the management truly believed in their company they would have bought stock at 2/3/4p, yet we dont even see them buying at 1p that is very telling. They knew it was a shambles all along, they have been stringing us PI’s all along. I hope im proved wrong in the next month or two, I really do, but once a company gets things wrong in the past, they will keep on getting things wrong. Like you said track record is everything, and its utter crap.

    • Brokerman says:

      I think you’ll find that there’s a majority opinion out there that reflects yours. And it’s understandable but the difference here is that this company for all their mis-haps have actually got the oil and are more than likely to have considerably more than the stated 15 million barrels. It’s a real kick in the teeth but they will get it right. Think how you’ll feel when they do get it right and they will it’s just a question of strategy and time. Delek are invested at 3p re the last placing you are in a better position than them. However if you feel its time to jump ship then do it its your decision and its your money
      Good Luck

      Dan

  16. Steve says:

    Dan
    Cut my losses on Matra and looking for payback on VOG, the company you did write about last November. I feel Victoria Oil & Gas is the company that you should be pushing heavily right now for good short term returns.

  17. Mr Steven Marshall says:

    I’ve been a private investor for the last 23 years. I have never in all my days read such utter nonsense as I’ve been reading lately concerning Matra petroleum. Governance and responsibility rest with the company not with this lads Blog. I like this Blog and I will continue to use it it’s a truly wonderful site. Of course there’s no site or tipster thats infallible but the facts speak for themselves. Generally this boy puts in a tremendous effort and yes he like us all has to rely on the veracity of his contacts. No one is responsible for the water in Orenburg seeping in other than the Board of Directors and the crew working the rigs.
    Shame on those who periodocally crawl out from the gutter trying to rubbish people or companies with blatant down right lies. MTA are not failing they have 15 million barrells of oi,l are debt free and have access to oil infrastructure. Its at times like these that the men are sorted out from the whinging wimps and we all know who the whingers are! I dont recall these people posting when Matra were 4.8p or when gkp were 200p or Encore 155p or sefton 9p etc They only pop up once in a blue moon and thats usually out of envy and jealousy or spite. Horrible people.

    Well done Daniel I spoke to Neil at Matra and he confirmed exactly what you have written.

    Steven Marshall

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