Hi Saxa, When I talked to the people at Matrix, They said that...

Hi Saxa, When I talked to the people at Matrix, They said that Brian Hockney was getting down to the nitty gritty on the deal over the rig.

News should be out very soon. The first time I talked to them they were quite open, but on Friday they were very tight lipped. Rules of disclosure and all that.

My experience is that the closer a company gets to releasing news, the less info they will give you over the phone.

From here I am just as much in the dark as you.

But looking at the situation, yes I am upbeat about the Company, because of the price of oil being where it is.

I am sure they will be able to meet their commitments with respect to payment of the rig, and start to return a dividend to share holders by the middle of next year.

It's not a matter of defending or knocking the company, but looking into the cashflows that have already come in, and to how they will reduce their debt over the next year.

Matrix has a 90% working interest in the Langsa fields.

Combined output of both wells was 7 000 bopd.
The price of oil used in the calculations was US $20 /barrel.

Oil is at $26 as we speak.

Do the math. Even at US $20/barrel, the daily revenue is $140 000 a day. Per week that amounts to $980 000. Over the whole year a whopping $50 960 000. That is smack on $100 000 000 AUD.

After profit sharing with the Indonesian Government, I am not quite sure of Matrix's cut. But I will be finding out Monday Morning. And also their production cost per barrel.

Alright you might say, I can pull these figures out and wave them around, but that does not allay your fears about whether they can secure the rig or what contingency plans that they may have if it were to happen again.(Hydraulic fluid leak).

These are all variables that you have to take into consideration when investing in such a company.

I think that the risks are worth it nonetheless.

I appreciate your comments.

Cheers

Brewster.