TIDMMATD
RNS Number : 4310C
Petro Matad Limited
01 October 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.
1 October 2018
Petro Matad Limited
("Petro Matad" or the "Company")
Operational update
Petro Matad, the AIM quoted Mongolian oil explorer, is pleased
to provide the following operational update:
Block V
Operations at the Snow Leopard-1 well were completed on 25
September 2018 and the rig is currently being dismantled and
mobilised to the Wild Horse 1 location in Block IV. Once the rig
has left, the site will be reclaimed and restored to its pre-drill
condition.
The water well drilled at site which was used to provide water
for the drilling operation will be handed over to the local
community as part of the social development programme that is being
conducted in parallel with the drilling operations.
Data and samples gathered during the drilling of the well are
now under evaluation to determine the implications of the well
results for the surrounding prospectivity. The presence of thick
shales and oil and gas shows in the well highlight the potential
prospectivity of the Taats basin in which a number of other
prospects and leads have been mapped.
Environmental permitting for two potential drilling locations on
the 200MMbo Fox prospect in the Tugrug Basin is advancing with a
target of securing approval by the end of 2018, in good time for
the start of the 2019 drilling season.
Block IV
Site construction at the Wild Horse 1 location was completed on
1 October 2018. The first trucks with rig loads also departed the
Snow Leopard location on 1 October 2018 to the Wild Horse location.
The spud date for Wild Horse-1, following rig up, is expected to be
late October 2018. The well, which is programmed to reach a total
depth of 2200m, is expected to take between 30 and 45 days to drill
and log.
The winter weather in the area where Wild Horse is located is
generally milder than in eastern Mongolia, with operable
temperatures lasting through the month of December. The Company
remains on track to complete the Wild Horse 1 drilling operation
this year.
The Wild Horse prospect is a prominent structural high on the
flank of the as yet undrilled Baatsagaan Basin and is ideally
located to receive charge from two deep basinal areas mapped to the
East and West. The structure has elements of four-way dip closure
and fault closure. It also has bright seismic events that appear to
conform to structure and which may therefore be indicative of
hydrocarbon fluid content. Wild Horse 1 is located to drill through
one such anomaly at the crest of the structure. The prospect has a
large section within structural closure from c. 700m to total depth
and the recoverable resource potential is estimated to be 480MMbo.
A number of prospects and leads have been identified in the same
basin which would be high graded by encouraging results in Wild
Horse 1, including a satellite structure immediately to the East of
the Wild Horse prospect.
Block XX
The tender for a rig for the 2019 Block XX drilling campaign is
in final draft form and after agreement with the industry regulator
is scheduled for issue in mid-October 2018 with the goal of having
the contract finalised with the winning contractor by January 2019,
well in advance of the weather dependent start of the 2019 drilling
season, likely to be early in Q2. All environmental, chemical and
land usage permits are already in hand for the prospects in
northern Block XX including for Gazelle, Heron and Antelope. Work
is underway on the environmental permitting for Red Deer targeting
approval before the end of this year.
Mike Buck, the CEO of Petro Matad said:
"Operations continue to progress on track for us to drill and
log the Wild Horse-1 well this year. Wild Horse is a very exciting
prospect and from the size of the potential prize alone, the Wild
Horse 1 well certainly deserves its place in Wood Mackenzie's
ranking of the top 20 exploration wells to watch in 2018.
We continue to work hard on preparations for next year's
drilling campaign and look forward to updating the market on Wild
Horse soon."
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
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDLLFIDARIIVIT
(END) Dow Jones Newswires
October 01, 2018 02:00 ET (06:00 GMT)
Petro Matad (LSE:MATD)
Historical Stock Chart
From Apr 2024 to May 2024
Petro Matad (LSE:MATD)
Historical Stock Chart
From May 2023 to May 2024