REG - Petro Matad Ltd - Operational Update – Spud of Heron-2

Petro MatadAnnouncement

09/09/2024 07:00

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RNS Number : 3268D  Petro Matad Limited  09 September 2024

9(th) September 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
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IN THE PUBLIC DOMAIN.

Petro Matad Limited

("Petro Matad" or the "Company")

 

Operational Update - Spud of Heron-2

Petro Matad Limited ("Petro Matad" or "the Company"), the AIM quoted Mongolian
oil company, provides the following operational update.

Spud of the Heron-2 Development Well

Petro Matad is pleased to announce that on 8(th) September it spudded the
Heron-2 development well in the Tamsag Basin of eastern Mongolia. This is the
first development well to be drilled on the Petro Matad operated Heron Field,
which has total oil in place potential of c. 190 million barrels and which was
discovered when the Heron-1 well was drilled and tested in 2019.

Heron-2 is being drilled by the DQE International rig 40106 and is located c.
800m south of the original Heron discovery well. It is targeting the same
reservoir units of the Cretaceous Lower Tsagaantsav Formation that were proven
productive in Heron-1. Heron-1 flowed at a maximum rate of 821 barrels of oil
per day on test from a 12m interval between 2,834m and 2,846m in an overall
oil column of some 70m. This was the third best test rate ever recorded in
Mongolia. Heron-2 has been located to investigate the extension of the
productive reservoir zone seen in the discovery well and will be drilled to a
total depth (TD) of c. 2,900m. The reservoir is expected to be encountered at
a similar depth to that in Heron-1 based on interpretation of the high quality
3D seismic data covering this portion of the Heron structure.

Drilling to TD is expected to take about 30 days following which wireline
logging will be conducted to evaluate the productive potential of the
reservoir. A well test and stimulation programme are planned to be executed
during the 2024 operational season. If successful, Heron-2 will be put on
stream in either late 2024, if time permits, or in Q2 2025 after the winter
operational shut down.

Gobi Bear-1 Well Preparations

Mobilisation activities for the Gobi Bear-1 exploration well are underway with
anticipated spud by mid-September. A separate update will be issued in due
course.

Heron-1 surface equipment installation and preparations for production

The construction permit for the installation of production facilities at
Heron-1 is at the final stage of the approval process. The construction
contractor is ready to mobilise. The paperwork for the construction permit for
Heron-2 is also being progressed whilst, in parallel, the Company has proposed
a streamlined approval process to the Ministry of Construction to reduce the
bureaucracy for the construction of oil production well pads.

Negotiations with PetroChina and industry regulator, the Mineral Resources and
Petroleum Authority of Mongolia (MRPAM), on processing, transport and sales of
Block XX production are progressing and Petro Matad has been invited by
PetroChina to meet at its Block XIX facilities to review the logistical
options.

 

Mike Buck, CEO of Petro Matad, said:

"After a lot of effort from our staff and considerable patience from our
shareholders, we are very pleased to have spudded the Heron-2 development well
and we look forward to Gobi Bear-1 following soon. We are encouraged by the
progress of discussions on cooperation with PetroChina and we are pushing for
the final approval on the Heron-1 construction permit which we don't expect to
take much longer."

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

 

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,
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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