Interim results
Petro Matad Limited
('Petro Matad' or the 'Company' or the ‘Group’)
Interim results for the six months ended 30 June 2026
LONDON, 29 September 2026: Petro Matad Limited, the AIM quoted Mongolian oil company, is pleased to announce its unaudited interim results for the six months ended 30 June 2026 (“1H 2026”).
Financial Highlights
- Petro Matad’s cash balance at 30 June 2026 was USD 2.76 million (USD 2.14 million in cash and USD 0.62 million in Financial Assets), comparing to USD 2.37 million (USD 1.7 million in cash and USD 0.67 million in Financial Assets) on 30 June 2025.
- The Group posted a loss of USD 0.59 million for the 6-month period ended 30 June 2026, which compares to a loss of USD 1.7 million for the comparable period in 2025.
- At end June 2026 the Group had an outstanding net receivable from 2026 oil production of USD 2.16 million based on the average oil price for the year to that date.
Operational Highlights
- Production from Heron-1 and Gazelle-1 wells continued throughout with a total of 41,941 barrels of sales crude oil offloaded at the Block XIX processing facility during the reporting period. Water-cut at Heron-1 remained very low while at Gazelle-1, where early water breakthrough had been observed, it stabilised at c.20%.
- Negotiations of the 2026 Oil Sales Agreement with Block XIX operator PetroChina Daqing Tamsag LLC (PetroChina) were completed in April but PetroChina HQ delayed implementation so no sales revenue payments were made during 1H 2026.
- Farm-in partner discussions for Block XX and Block VII were conducted with several international and Chinese entities and these were ongoing at the end of the reporting period.
- SunSteppe Renewable Energy (SRE), the Company’s renewable energy joint venture secured exclusivity on three new projects totalling 290MW and intends to participate in a tender for another 100MW project. Of the new projects, two have been prioritised by the Mongolian government and SRE has already received approval of the Feasibility Studies and Licences to Construct for both.
Financial Summary 1H 2026
Production from the Heron-1 and Gazelle-1 wells in Block XX, eastern Mongolia, during the first half of 2026 averaged a combined 241 barrels of oil per day (bopd) with a total volume of sales crude (after accounting for water-cut) of 41,941 barrels offloaded at the TA-1 processing facility in Block XIX operated by PetroChina. The 2026 Oil Sales Agreement which was very similar to the 2025 agreement under which Block XX crude was sold and paid for was drafted in October 2025 and finally agreed by PetroChina Mongolia in April 2026 after Petro Matad had brought in representatives of the industry regulator, the Mineral Resources and Petroleum Authority of Mongolia (MRPAM) and the General Tax Authority to allay all concerns raised. However, PetroChina’s Head Office legal and compliance departments raised and re-raised a number of issues and despite the Company rapidly addressing all of these, the agreement was still not executed and effective at the end of the reporting period. Notwithstanding this, PetroChina continued to accept crude from Block XX for storage in Block XIX but without an executed Oil Sales Agreement no 2026 oil revenues were received during 1H 2026.
In order to carefully manage its cash resources, the Company delayed operational activity on its oil assets other than the continuing production operations pending receipt of 2026 revenue. In early 2026, PetroChina paid the monies it had withheld from 2025 oil sales revenues.
The Group posted a loss of USD 0.59 million for 1H 2026, which compares to a loss of USD 1.70 million for the comparable period in 2025. The Company's cash balance at 30 June 2026 was USD 2.76 million (USD 2.14 million in cash and USD 0.62 million in Financial Assets), which compares to a cash balance of USD 2.37 million (USD 1.70 million in cash and USD 0.67 million in Financial Assets) on 30 June 2025.
The cash balance on 30 June 2026 included USD 0.9 million in cash that is payable to MRPAM for its production share and royalties per the PSC. Payments to MRPAM continue to be withheld pending resolution of all issues relating to the crude Oil Sales Agreement and receipt of revenue from PetroChina. At the end of June 2026 there was a net receivable owed to the Company of USD 2.16 million for oil delivered to Block XIX.
Operational Summary 1H 2026
Considerable effort was expended during the reporting period on finalising the 2026 Oil Sales Agreement. Implementation was still delayed at the end of June pending approval by PetroChina’s Head Office. In parallel with this long running delay, Petro Matad chose to continue to produce based on PetroChina’s advice that a positive resolution was coming soon.
Production from the Heron-1 and Gazelle-1 wells was continuous during the period with 265 loads of crude oil, totalling 41,941 barrels of sales crude, delivered and offloaded at the TA-1 processing facility. During the period there were no HSES incidents related to Petro Matad’s production operations.
Both wells were produced continuously throughout the period via artificial lift by means of surface beam pumps. Heron-1 achieved an operational uptime of over 99% with production performance as per the Company’s forecasts and averaging 123 bopd over the period. Water cut remained very low at less than 5%. At Gazelle-1 well performance continues to exceed expectation by some 46%. With the expected drawdown of reservoir pressure as oil is removed, the daily pumping hours at Gazelle were gradually reduced during the period to ensure that the fluid level in the well is always maintained above the pump inlet port to avoid damage to the pump. Even so, operational uptime was good at c.95% and the well averaged 118 bopd through the period. Early water breakthrough observed in Gazelle-1 was addressed with careful management of pumping hours and surface pressures and the water cut stabilised at c.20%.
The Company had plans to conduct some other operational activities in 2026 including the acquisition of a new 3D seismic survey covering the entire prospective area of Block XX. The most experienced contractor in country offered a very competitive and flexible commercial package but whilst payment for production remained outstanding this programme along with plans to return to the Heron-2 well for further reservoir stimulation operations and a well test at Gobi Bear-1 have been deferred. Meanwhile, low cost in-house work on Block VII continued throughout the period including analysis of drill cuttings recovered from the well drilled by the previous operator of the block.
The farm-out process for Block XX and Block VII continued with several international and Chinese parties reviewing data.
SRE, the Company’s renewable energy Joint Venture, made good progress during the reporting period. Changes at cabinet level within the Mongolian government saw the rapid development of a new and dynamic environment for renewable energy. SRE was able to secure exclusivity on three new projects, two of which have been sanctioned by the government to be prioritised for early commencement of construction. They are the Dundgobi and Uvurkhangai Solar Powered Battery Energy Storage System projects of 100MW capacity each. Proof of the government’s intentions to expedite these projects has been demonstrated in that SRE’s Feasibility Studies for both projects have already been approved by the Ministry of Energy as have the Licences to Construct.
The third new project was secured when an SRE consortium was ranked first in the tender for development of the 90MW Hunnu Solar Powered Battery Energy Storage System project. This project will provide power to Ulaanbaatar to strengthen the reliability and sustainability of the capital’s electricity supply.
Post Reporting Period
Post the reporting period, on Block XX PetroChina confirmed by letter in August that implementation of the 2026 Oil Sales Agreement had been sanctioned and that crude oil export would start and payments would begin in September but they did not live up to this commitment and PetroChina HQ is still reviewing the contract. In September, with storage tanks approaching capacity PetroChina instructed Block XX to shut in production. Petro Matad has raised the issue of the long delay to Oil Sales Agreement approval with all stakeholders and is receiving full support and assistance from MRPAM, the Minister of Industry and Mineral Resources and the Office of the Deputy Prime Minister to seek a rapid and positive resolution.
Production operations continued without incident up until the September shut down whilst other operational activities remained on hold pending receipt of revenue. Discussions with potential farminees continue.
On renewable energy, SRE’s high priority projects are progressing well. Tariff and power purchase agreements are under negotiation and based on preliminary figures are estimated to deliver an attractive double digit rate of return. SRE has agreed commercial terms with a major international renewable energy company giving them first right of refusal to join the projects once the power purchase agreements are finalised. This company is working with the SRE team to ensure all aspects of the projects are internationally bankable. The agreed terms set out the milestones and development premia payable should SRE exit but also gives SRE the chance to participate in construction and power production at a significant working interest if it so chooses. Such a decision will depend on funding availability at the time.
On the Hunnu project, the SRE consortium is waiting to be called by Ulaanbaatar Municipality to start negotiations and will target ready to build status on this project in 2027.
In addition to these three projects, SRE has agreed to join a consortium led by an internationally renowned renewables company that is participating in the tender for a 100MW wind project being managed by IFC. Meanwhile, wind data gathering continues at SRE’s 200MW Hybrid project.
SRE is well placed to crystallise value from the Mongolian renewables sector and the Company will make a presentation on Mongolian renewables and SRE’s ambitions on the Investor Meet Company platform in October. Details of this event will be circulated to shareholders in advance.
Mike Buck, CEO of Petro Matad, said:
“We are very pleased to have proven that Block XX is capable of reliable and commercial production, with both the Heron-1 and Gazelle-1 wells performing consistently and in line with or ahead of expectations. This strengthens our position as we continue discussions with potential farm-in partners to accelerate the development.
It is beyond frustrating that the delay on oil sales continues and we are working on resolving this as our top priority.
Our renewable energy initiative has made excellent progress, securing exclusivity on three new projects, two of which have already received government prioritisation. We are focused on crystallising value from this growing portfolio and look forward to sharing more details with investors in October.”
- Ends -
Further information please contact:
Petro Matad Limited
Mike Buck, CEO
+976 7014 1099 / +976 7575 1099
Shore Capital (Nominated Adviser and Broker)
Toby Gibbs
Harry Davies-Ball
+44 (0) 20 7408 4090
Zeus (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
About Petro Matad
Petro Matad is the parent company of a group focused on oil exploration, development and production in Mongolia. Currently, Petro Matad holds a 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. The Company also holds a 100% working interest and operatorship of the Borzon Block VII Production Sharing Contract with an area of 41,141 square kilometres in southern central Mongolia. The Company also has a 50% holding in the SunSteppe Renewable Energy joint venture pursuing utility scale renewable energy projects in Mongolia.
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.
STATEMENT OF COMPREHENSIVE INCOME
FOR THE HALF-YEAR ENDED 30 JUNE 2026
Consolidated
30 Jun 2026
30 Jun 2025
$'000
$'000
Continuing Operations
Revenue
Operating income
2,722
1,403
Cost of goods sold
(560)
(384)
2,162
1,019
Interest income
19
17
Other income
-
-
19
17
Expenditure
Consultancy fees
(72)
(69)
Depreciation and amortisation
(838)
(649)
Employee benefits expenses
(694)
(726)
Exploration, exploitation and evaluation expenditure
(63)
(84)
Other expenses
(845)
(782)
Share of loss from equity accounted investments
(259)
(395)
Profit/(Loss) from continuing operations before income tax
(590)
(1,670)
Income tax expense
-
-
Profit/(Loss) from continuing operations after income tax
(590)
(1,670)
Net Loss
(590)
(1,670)
Other comprehensive income/(loss)
Exchange rate differences on translating foreign operations
(4)
(30)
Other comprehensive income/(loss), net of income tax
(4)
(30)
Total comprehensive loss
(594)
(1,700)
Profit/(Loss) attributable to owners of the parent
(590)
(1,670)
Total comprehensive income/(loss) attributable to owners of the parent
(594)
(1,700)
Earnings/(loss) per share (cents per share)
- Basic and diluted earnings/(loss) per share
(0.03)
(0.11)
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2026
Consolidated
30 Jun 2026
31 Dec 2025
30 Jun 2025
$'000
$'000
$'000
ASSETS
Current Assets
Cash and cash equivalents
2,144
3,093
1,702
Trade and other receivables
3,740
1,706
991
Prepayments
235
140
149
Inventory
211
210
216
Total Current Assets
6,330
5,149
3,058
Non-Current Assets
Exploration and evaluation
13,571
14,187
14,661
Financial assets
620
575
670
Property, plant and equipment
659
699
442
Right-of-Use asset
46
112
42
Petroleum asset
218
307
393
Investment in SunSteppe
619
613
483
Total Non-Current assets
15,733
16,493
16,691
TOTAL ASSETS
22,063
21,642
19,749
LIABILITIES
Current liabilities
Trade and other payables
3,136
2,103
1,567
Lease liability
40
116
38
Total Current Liabilities
3,176
2,219
1,605
Non-Current Liabilities
Decommissioning provision
620
595
563
Total Non-Current Liabilities
620
595
563
TOTAL LIABILITIES
3,796
2,814
2,168
NET ASSETS
18,267
18,828
17,581
EQUITY
Issued capital
172,792
172,792
169,009
Reserves
517
488
469
Accumulated losses
(155,042)
(154,452)
(151,897)
TOTAL EQUITY
18,267
18,828
17,581
CONDENSED CASH FLOW STATEMENT
FOR THE HALF-YEAR ENDED 30 JUNE 2026
Consolidated
30 Jun 2026
30 Jun 2025
$'000
$'000
Cash flows from operating activities
Oil sale revenue
1,488
1,177
Payments to suppliers and employees
(2,032)
(1,892)
Interest received
19
17
Net cash flows from/ (used in) operating activities
(525)
(698)
Cash flows from investing activities
Purchase of property, plant and equipment
(16)
(16)
Proceeds from sale of financial assets
(45)
298
Investment in SunSteppe
(265)
180
Net cash flows from/ (used in) investing activities
(326)
462
Cash flows from financing activities
Proceeds from issue of shares
-
-
Capital raising costs
-
-
Payments of lease liability principal
(94)
(19)
Net cash flows from/ (used in) financing activities
(94)
(19)
Net increase/(decrease) in cash and cash equivalents
(945)
(255)
Cash and cash equivalents at beginning of period
3,093
1,987
Net foreign exchange differences
(4)
(30)
Cash and cash equivalents at end of period
2,144
1,702
STATEMENT OF CHANGES IN EQUITY
FOR THE HALF-YEAR ENDED 30 JUNE 2026
Consolidated
Attributable to equity holders of the parent
Issued Capital
$’000
Accumulated Losses
$’000
Other
Reserves $’000
Total
$’000
As at 1 January 2025
169,009
(150,227)
448
19,230
Income/(Loss) for the period
-
(1,670)
-
(1,670)
Other comprehensive income
-
-
(30)
(30)
Total comprehensive income/(loss) for the period
169,009
(151,897)
418
17,530
Transactions with owners in their capacity as owners
Issue of share capital
-
-
-
-
Cost of capital raising
-
-
-
-
Share based payments
-
-
51
51
As at 30 June 2025
169,009
(151,897)
469
17,581
As at 1 January 2026
172,792
(154,452)
488
18,828
Income/(Loss) for the period
-
(590)
-
(590)
Other comprehensive income
-
-
(4)
(4)
Total comprehensive income/(loss) for the period
172,792
(155,042)
484
18,234
Transactions with owners in their capacity as owners
Issue of share capital
-
-
-
-
Cost of capital raising
-
-
-
-
Share based payments
-
-
33
33
As at 30 June 2026
172,792
(155,042)
517
18,267
1. CORPORATE INFORMATION
The financial report covers the consolidated entity of Petro Matad Limited and its controlled entities.
Petro Matad Limited (Company) incorporated in the Isle of Man on 30 August 2007 has seven wholly owned subsidiaries, which are: Capcorp Mongolia LLC, Petro Matad LLC and Petro Matad Energy LLC (all incorporated in Mongolia), Central Asian Petroleum Corporation Limited (Capcorp) and Petromatad Invest Limited (both incorporated in the Cayman Islands), as well as Petro Matad Energy Limited and Petro Matad Resources Limited (both incorporated in Isle of Man). Petro Matad Limited owns 50% of Sunsteppe Renewable Energy Pte. Ltd. (formerly known as Petro Matad Singapore Pte. Ltd.), which is incorporated in Singapore, and is owned jointly together with Sunsteppe Energy LLC to pursue renewables energy projects. The Company and its subsidiaries are collectively referred to as the “Group”. The Group’s principal activities during the financial year consisted of oil exploration and development and investment in renewable projects in Mongolia.
Petro Matad Limited trades on the Alternative Investment Market (AIM), which is a sub-market of the London Stock Exchange, under the symbol MATD. Petrovis Matad Inc. is a major shareholder of the Company.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The half-year financial report does not include all of the notes of the type normally included within the annual financial report and therefore cannot be expected to provide as a full understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as full financial report.
The half-year financial report should be read in conjunction with the annual Financial Report of Petro Matad Limited as at 31 December 2025. The half-year consolidated financial statements have been prepared using the same accounting policies as used in the annual financial statements for the year ended 31 December 2025.
It is also recommended that the half-year financial report is considered together with any public announcements made by Petro Matad Limited and its controlled entities during the half-year ended 30 June 2026.
- Basis of Preparation
The half-year consolidated financial report is a general purpose financial report, which has been prepared in accordance with the requirements of International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (‘IASB’). The half-year financial report has been prepared on a historical cost basis, except where stated.
The financial report is presented in US dollars, and all values are rounded to the nearest thousand dollars ($’000).
For the purpose of preparing the half-year financial report, the half-year has been treated as a discrete reporting period.
- Basis of consolidation
The consolidated financial statements comprise the financial statements of the Group for the half-year period ended 30 June each year.
Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable or convertible are taken into account. The financial statements of the subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.
The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. Adjustments are made to bring into line any dissimilar accounting policies that may exist.
A change in the ownership interest of a subsidiary that does not result in a loss of control is accounted for as an equity transaction.
All intercompany balances and transactions, including unrealised profits arising from intra-group transactions, have been eliminated in full. Unrealised losses are eliminated unless costs cannot be recovered.
3. CONTRIBUTED EQUITY
CONSOLIDATED
30 Jun 2026
31 Dec 2025
$'000
$'000
Ordinary shares (i)
1,858,800,396 shares issued and fully paid.
(31 Dec 2025: 1,858,800,396)
172,792
172,792
172,792
172,792
(i) Ordinary shares
Fully paid ordinary shares carry one vote per share and carry the right to dividends.
Movement in ordinary shares on issue
Number of Shares
Issue Price $
$’000
At 1 January 2026
1,858,800,396
172,792
No transactions during the period
-
-
-
At 30 June 2026
1,858,800,396
172,792
4. RESERVES
A detailed breakdown of the reserves of the Group is as follows:
Merger reserve
Equity benefits reserve
Foreign currency translation
Total
Consolidated
$’000
$’000
$’000
$’000
As at 30 June 2025
831
1,008
(1,370)
469
Currency translation differences
-
-
3
3
Expiry of Options
-
-
-
-
Share based payments
-
16
-
16
As at 31 December 2025
831
1,024
(1,367)
488
Currency translation differences
-
-
(4)
(4)
Share based payments
-
33
-
33
As at 30 June 2026
831
1,057
(1,371)
517
5. EARNINGS/(LOSS) PER SHARE
The following reflects the income and share data used in the total operations basic and diluted earnings/(loss) per share computations:
CONSOLIDATED
30 June
2026
30 June
2025
Basic earnings/(loss) per share
Total basic earnings/(loss) per share (US$ cents per share) (note a)
(0.03)
(0.11)
Diluted earnings/(loss) per share
Total diluted earnings/(loss) per share (US$ cents per share) (note b)
(0.03)
(0.11)
(a) Basic earnings/(loss) per share
The profit/(loss) and weighted average number of ordinary shares used in the calculation of basic loss per share are as follows:
Net profit/(loss) attributable to ordinary shareholders (US$’000)
(590)
(1,670)
Weighted average number of ordinary shares for the purposes of basic earnings per share (‘000)
1,858,800
1,483,884
(b) Diluted earnings/(loss) per share
The profit/(loss) and weighted average number of ordinary shares used in the calculation of diluted earnings per share are as follows:
Net profit/(loss) attributable to ordinary shareholders (US$’000)
(590)
(1,670)
Weighted average number of ordinary shares for the purposes of basic earnings per share (‘000)
1,858,800
1,483,884
Share Options and Conditional Share Awards could potentially dilute basic loss per share in the future, however they have been excluded from the calculation of diluted loss per share because they are anti-dilutive for both years presented.
6. EVENTS AFTER THE REPORTING DATE
NIL
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