REG - Petro Matad Ltd - Heron-2 drilling results

Petro MatadAnnouncement

01/10/2024 07:15

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RNS Number : 4140G  Petro Matad Limited  01 October 2024

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                                                   +44 (0) 20 7408 4090

 Rachel Goldstein
 Zeus Capital Limited (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

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.

 

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