THE INFORMATION CONTAINED WITHIN
THIS ANNOUNCEMENT IS DEEMED BY PETRO MATAD LIMITED TO CONSTITUTE
INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET
ABUSE REGULATION (EU) NO. 596/2014 AS IT FORMS PART OF UNITED
KINGDOM DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL)
ACT 2018 ("UK 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 2024
Petro
Matad Limited
("Petro
Matad" or the "Company")
Heron-2
drilling results.
Petro Matad Limited (AIM: MATD), the
AIM quoted Mongolian oil company, announces that Heron-2, the first
development well to be drilled on the Petro Matad operated Heron
Oil Field in Block XX in the Tamsag Basin
of eastern Mongolia, has reached TD and wireline logging has been
completed.
Highlights
·
Heron-2 reached a total depth (TD) of 2,908m seven
days ahead of schedule.
·
An oil zone of 18m gross thickness was encountered
which wireline logging indicates is very likely the same
stratigraphic unit as that successfully tested in the Heron-1
discovery well.
·
Production casing has been run in preparation for
a well testing programme.
Drilling and logging
results
The Heron-2 well reached TD seven
days ahead of schedule following a smooth drilling operation with
no safety or environmental issues. It encountered the primary
target Cretaceous Lower Tsagaantsav Formation on prognosis. Oil and
gas shows were observed from the top of the formation and an 18m
thick interval of sandstone was penetrated in a similar
stratigraphic position to the sandstone in Heron-1 that flowed good
oil rates on well test. This interval was encountered at a depth of
2816m in Heron-2, 16m shallower than in the Heron-1 well and
drilling mud was lost to the formation at the top of the unit, as
it was in Heron-1, indicating a zone with good
permeability.
Petrophysical evaluation of the
wireline logs indicates that oil is present to the base of the sand
and there is net oil pay within it of more than 5 metres. Log
correlation indicates that this sandstone is very likely to be the
same stratigraphic unit as the one tested successfully in Heron-1.
It also has similar log calculated porosity.
Casing has been run to TD and
preparations are being made for a well testing and stimulation
programme over the pay zone with the ambition, in the event of
successfully achieving a commercial flow rate, to put the well on
stream as soon as possible. Recent heavy rains in the area have
caused some logistical difficulties but the Company remains focused
on getting the testing programme completed expeditiously and, based
on the results, will then determine if time and weather will permit
getting the well on production before the 2024 winter operational
shut down in late November. The well test operations are expected
to be completed during the month of October.
Mike Buck, CEO of Petro Matad,
said:
"We are encouraged by the results of
Heron-2 so far. Reservoir variability is one of the main
uncertainties in the Tamsag Basin, so to have found what looks very
much like the same unit in Heron-2 that proved productive in the
Heron-1 discovery well is pleasing. Testing operations will
determine the well deliverability and the forward programme
thereafter. We are keen to maintain the momentum generated in the
last few months."
Further operational updates will be
provided in due course.
- Ends
-
Further information please contact:
|
Petro Matad Limited
|
|
|
Mike Buck, CEO
|
+976 7014 1099 / +976 7575
1099
|
|
Shore Capital (Nominated Adviser and Joint
Broker)
|
|
|
Toby Gibbs
Rachel
Goldstein
|
+44 (0) 20 7408 4090
|
|
Zeus Capital Limited (Joint
Broker)
Simon Johnson
Louisa Waddell
|
+44 (0) 20 3829 5000
|
|
FTI
Consulting (Communications Advisory Firm)
|
|
|
Ben Brewerton
Christopher Laing
|
+44 (0) 20 3727 1000
|
Technical information in this news
release has been reviewed by the Company's Technical Manager, Mr.
Jerry Smart. He has over 40 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.
About Petro Matad
Petro Matad is the parent company of
a group focused on oil exploration, as well as future development
and production in Mongolia. Currently, Petro Matad holds 100%
working interest and the operatorship of the Matad Block XX
Production Sharing Contract with the government of Mongolia. Block
XX has an area of 214 square kilometres in the far eastern 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.