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.