Petro Matad Limited Snow Leopard 1 Well Results (3215B)
20 September 2018 - 4:00PM
UK Regulatory
TIDMMATD
RNS Number : 3215B
Petro Matad Limited
20 September 2018
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY
PETRO MATAD LIMITED TO CONSTITUTE INSIDE INFORMATION AS STIPULATED
UNDER THE MARKET ABUSE REGULATION (EU) NO. 596/2014 ("MAR"). ON THE
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION
SERVICE ("RIS"), THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN
THE PUBLIC DOMAIN.
20 September 2018
Petro Matad Limited
("Petro Matad" or the "Company")
Snow Leopard 1 Well Results
Petro Matad, the AIM quoted Mongolian oil explorer, provides a
summary of the results from its Snow Leopard 1 well:
The Snow Leopard-1 well, drilled in Petro Matad's 100% owned and
operated Block V, and the first oil exploration well ever drilled
in the 60,000km(2) Valley of the Lakes basin complex of central
Mongolia, has reached total depth of 2930m MD in granitic
basement.
No sands were encountered at the shallower of the two primary
targets of the well although drilling gases (C(1) to C(5) ) and an
oil sheen in the drilling mud were observed across the interval.
The gases are believed to be indicative of an active petroleum
system in the basin and the oil observed in the mud is suspected to
have entered the well from one of the prospect bounding faults
which may be acting as a conduit for migrating oil.
The deeper objective of the well was encountered on the
pre-drill depth prognosis with good development of sandstones in an
overall gross interval of more than 400m. However, no oil or gas
shows were observed while drilling through these sediments and
subsequent logging confirmed them to be water bearing. The absence
of hydrocarbon shows is being investigated. The primary pre-drill
risk for this target was effectiveness of the fault bounded trap.
Given the evidence of an active petroleum system in the basin, with
confirmed source and reservoir outcrops on the basin flanks and
well-developed source and reservoir intervals in the well, the lack
of shows at this level appears to be prospect specific, with the
bounding fault either not sealing or having been breached.
The Snow Leopard-1 well will now be plugged and abandoned and
the post well evaluation will commence. Initial examination of
cuttings samples and wireline logs indicates the presence of a
significant thickness of source rocks in the well, including
claystone layers with a 'hot shale' wireline log response. The hot
shale response can be an indicator of very high organic content
(and hence very good source potential) and this will be
investigated as the presence of thick, rich source rocks will have
a positive impact on de-risking the surrounding prospects in the
Taats basin and the adjacent basins.
Once operations are complete at Snow Leopard, the rig will move
to the Wild Horse 1 location, a mobilisation distance of some
450km. The Wild Horse prospect, targeting 480 MMbo of prospective
resource, is a large four-way dip and fault bounded closure in the
Baatsagaan Basin in Petro Matad's Block IV. The Company has
completed all pre-drill formalities for Wild Horse 1, has all the
required approvals in hand and has engaged proactively with local
stakeholders. A further update will be provided when the well
spuds.
Mike Buck, the CEO of Petro Matad said:
"Whilst Snow Leopard 1 did not find the oil accumulations we had
hoped for there are encouraging signs in terms of confirmation of
source and reservoir rock development. The presence of oil and wet
gas shows has heightened our interest in the other prospects mapped
in the Taats basin. We are working these up now based on the wealth
of information gathered in the well.
Operational attention now shifts to the high impact Wild Horse
well which offers huge prospective resource potential and
significant follow up in prospects and leads mapped in the
Baatsagaan basin."
For more information, please contact:
Petro Matad Limited
+97 670 141 099 / +97 675 751
Mike Buck, CEO 099
Stockdale Securities Limited (Nominated Adviser and Broker)
Richard Johnson
Andy Crossley
David Coaten +44 (0) 20 7601 6100
Stifel Nicolaus Europe Limited
(Broker)
Callum Stewart
Nicholas Rhodes
Ashton Clanfield +44 (0) 20 7710 7600
FTI Consulting (Communications Advisory Firm)
Sara Powell
Ben Brewerton +44 (0) 20 3727 1000
All Reserves and Resources definitions and estimates shown in
this report are based on the 2007 SPE/AAPG/WPC/SPEE Petroleum
Resource Management System ("PRMS").
Technical information in this news release has been reviewed by
the Company's Exploration Manager, Mr. Jerry Smart. He has 36 years
of industry experience in oil and gas exploration and production
with LASMO, Eni, Salamander Energy and Ophir Energy. He holds a
B.Sc. in Geology from King's College, London.
Glossary
MMbo million barrels of oil
Prospective Resources estimated volumes associated with undiscovered accumulations. These represent
quantities of
petroleum which are estimated, as of a given date, to be potentially recoverable from
oil
and gas deposits identified on the basis of indirect evidence but which have not yet
been
drilled
MD measured depth
Drilling gases (C(1) to C(5) ) hydrocarbon gases entering the drilling mud whilst drilling are continuously
monitored and
analysed. In the Snow Leopard 1 well, hydrocarbon gases from Methane (C(1) ) up to
Pentane
(C(5) ) were detected.
About Petro Matad
Petro Matad is the parent company of a group focussed on oil
exploration, as well as future development and production in
Mongolia. At the current time, Petro Matad holds the sole
operatorship of three Production Sharing Contracts with the
Government of Mongolia. Block XX has an area of 10,340 square
kilometres in the far eastern part of the country, and Blocks IV
and V have an area of 28,900 square kilometres and 21,100 square
kilometres, respectively, in the southwest part of the country.
Petro Matad Limited is incorporated in the Isle of Man under
company number 1483V. Its registered office is at Victory House,
Prospect Hill, Douglas, Isle of Man, IM1 1EQ.
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END
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