REG - Petro Matad Ltd - Heron-1 operational update

Petro MatadAnnouncement

19/09/2024 07:00

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RNS Number : 7628E  Petro Matad Limited  19 September 2024

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LIMITED TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF
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IN THE PUBLIC DOMAIN.

Petro Matad Limited

("Petro Matad" or the "Company")

 

Heron-1 operational update

LONDON, 19 September 2024: Petro Matad Limited (AIM: MATD), the AIM quoted
Mongolian oil company, provides the following operational update on the
Heron-1 oil discovery well and anticipated oil production start-up.

·  Petro Matad has proposed that Heron-1 will be put onstream through
temporary facilities so that production is not further delayed by slow moving
bureaucracy.

·    Mineral Resources and Petroleum Authority of Mongolia (MRPAM) has
formally agreed to this proposal, with production start-up on Heron-1 now
anticipated during October.

Heron-1 well pad - surface facilities

As previously reported, the application for the construction permit to install
the long-term production facilities at Heron-1, which could only be initiated
after land access had been approved in late May, had reached the final stage
and the permit is with the provincial Governor for the final signature
required. The Governor is new in-post, having been formally appointed in early
September, and has told the Company that he needs time to review the
application. In light of this, and with no indication of how long this review
will take, Petro Matad has proposed, and industry regulator MRPAM has formally
agreed, that Heron-1 will be put onstream through temporary facilities so that
production is not further delayed by slow moving bureaucracy. The temporary
facilities will be positioned on the well site to allow construction of the
long-term facilities to go ahead in parallel with production operations once
the construction permit has been obtained. The Company has given notice to its
chosen contractor to install the temporary facilities and the work is
anticipated to be completed within two to three weeks.

Oil sales

Following the high level meeting held at the Block XIX facilities some 20km
north of the Heron-1 well, agreement in principle has been reached between
Petro Matad and the Block XIX operator for the collection, metering,
processing, storage, export and sale of Block XX production. The details are
now being incorporated into a cooperation agreement which will then be
presented to MRPAM for its approval. The parties have committed to try to have
the agreement in place in time for production start-up on Heron-1 which is now
anticipated to be during October.

Mike Buck, CEO of Petro Matad, said:

"The further hold up of the construction permit at the final step of an
unnecessarily complex process is unwelcome, but we are very pleased that we
have the support of MRPAM to use temporary facilities to expedite production.
We do not anticipate any significant facility cost increase as a result of
this solution and we will closely manage the construction activities when they
start, to allow construction and production operations to continue
simultaneously.

The meeting in Block XIX was very productive and the operator's willingness to
cooperate with the Company is much appreciated. We look forward to completing
the drafting of the cooperation agreement and to securing MRPAM's approval
within the next few weeks.

Meanwhile, Heron 2 drilling operations are proceeding smoothly. With Gobi
Bear-1 soon to spud, these are busy and exciting times for the Petro Matad
team."

Further updates will be provided as the 2024 work programme progresses.

 

- 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                                     +44 (0) 20 7408 4090

 Rachel Goldstein

 Zeus (Joint Broker)

 Simon Johnson                                  +44 (0) 20 3829 5000

 Louisa Waddell

 FTI Consulting (Communications Advisory Firm)
 Ben Brewerton                                  +44 (0) 20 3727 1000

 Christopher Laing

 Catrin Trudgill

 

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.

 

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