Matra Petroleum. “I BELIEVE”

I Believe!

The news from Matra.

As you’re all aware the Blog is a big supporter of this feisty little oiler not least because of the indomitable spirit that pervades the management. The fight to bring production back on stream looks set to be finally achieved with the company quietly confident.

The A13, after a small but successful oil flow, has now been shut in to achieve pressure build up before production begins. Our sources think that early next week looks the more likely period for news here given the fact that Matra’s big guns are rumoured to be flying out within the next 6 days to monitor A13 production. The company have stated that “The remedial cementing on well-13 appears to have gone well”. If succesful then this is the beginning of the end of a truly awful year for this company.

The A12 site is currently under-going final preparatory work as it awaits the arrival of the newly sourced rig that is as we speak heading towards Matra and should be on site within a matter of a days. The assembly of the rig can take up to 7 days but once drilling gets underway then the 4/6 week time frame kicks in. Don’t expect any news here until February I could be wrong but Matra are always late with news! It’s thought that the side-track will not present any great problems bearing in mind that they will NOT be drilling into the water-zone. The company have learnt their lessons from past drills.

The Production License shouldn’t really be a matter of concern. The delay is more or less Russian bureaucracy, that’s the way it is in Russia! I do know that Matra has an excellent working relationship with the Orenburg municipal authorities and are highly regarded. The people who matter in Orenburg like Matra.

Now so just where does this leave investors? Well looking into Dan’s crystal ball the next 12 months here could be truly transformational. Take it as a given that production will kick in on both wells and that the PL will be finalised within the next week or two this news will certainly kick-start a hike in investment value. The stock is way under-value at present and production resumption will almost certainly double/triple the sp on A12/A13 production news alone! Licence confirmation will also have a beneficial effect calming and soothing away investors fears. Confidence is set to return here!

The oip is a bone of contention with many and I think that it has certainly been down-played. Take Matra’s acquisition of further acreage in the north-east,which I might add cost them nothing! Matra already have 3D seismic covering half the new acreage this was acquired by Matra from TNK/BP at little or no cost. Now not many investors know that!

Neil Hodgson (Matra’s Geo man) has many years of experience having worked with some of the industries leading lights it was Hodgson who correctly interpreted the 3D seismic on the initial sokoloveskoe discovery and Matra’s acquisition of additional acreage with 3D seismic should be seen  as a pointer of more oil in place. There’s more oil here!!!! Orenburg is a rich oil bearing region. Matra has never given up and have fought tooth and nail to bring back production. They must know or suspect that the sokolovskoe field is a very big oil play! Estimates from the recent CPR vary wildly and all contain caveats. However it is my belief that a company that has fought through to this stage after setback after setback points to the sokolovskoe field being a company making oil-play!

As said before it’s been a terrible year for Matra holders but it’s all about to get very exciting with a company that could over the next year or so hit the jackpot!

Holders here should keep faith and hold their stock. Matra has already found the oil and Orenburg is a prolific oil-bearing region with full oil industry infrastructure. It is nailed on that they will increase substantially over the coming 12 months!

Hola!

Daniel