REG - Petro Matad Ltd - Operational Update

Petro MatadAnnouncement

03/04/2023 07:15

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RNS Number : 0421V  Petro Matad Limited  03 April 2023

 

3 April 2023

Petro Matad Limited

("Petro Matad" or the "Company")

Operational Update

 

Petro Matad (AIM: MATD), the AIM quoted Mongolian oil company, provides the
following operational update.

Key Company Updates

·    The Velociraptor 1 well is scheduled to spud in June 2023 as soon as
the rig is released from its current programme.

·    Documentation to certify the Block XX Exploitation Area as special
purpose land is being prepared by the Ministry of Mining and Heavy Industry
for submission to cabinet for approval.

·    Negotiations between Petro Matad and the government for a new block
in Mongolia's 2023 Exploration Tender Round have commenced.

Block V Exploration

Following discussions with selected drilling contractor, Major Drilling
("Major"), a spud date for the Velociraptor 1 well has been confirmed for June
2023 following completion of Major's current programme for another operator.
All required equipment for the well is in country. Field work has commenced to
make ready the water supply well that will be used to supply the operation.
Site construction will commence during May in good time for the scheduled June
spud. The well is expected to take around 30 days to drill to a prognosed
total depth of c.1500m.

Block XX Exploitation Licence

Documentation has been prepared by the Ministry of Mining and Heavy Industry
and circulated to other relevant ministries in advance of submission to
cabinet to secure approval to certify the Block XX Exploitation Area as a
Special Purpose Area. The certification is being proposed on the basis that
the Heron development is a project of national importance. We are pushing for
the matter to be brought to cabinet urgently in order to allow in-field
activities to commence to make the Heron 1 well ready for production.

2023 Exploration Licencing Round

Negotiations have commenced with MRPAM on the block for which Petro Matad has
submitted an application in Phase 1 of the 2023 open tender exploration
licencing round. Phase 2 of the round has recently been announced and the
third phase is expected to be announced in the next few months. The Company is
reviewing the newly offered blocks and plans to submit applications on those
it has high-graded.

Mike Buck, CEO of Petro Matad, said:

"As shareholders will know, we have wanted to drill Velociraptor for some time
now and so we are very excited to have agreed a firm schedule with the
drilling contractor. The necessary preparatory work is already underway and
all equipment for the well is in country ensuring we are ready to spud in
June.

We continue to push the Mongolian Government for the certification of Block XX
Exploitation Area as Special Purpose Land and are pleased that the Ministry of
Mining and Heavy Industry is proposing the certification on the grounds of
this being a project of national importance."

 

- 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

 John More
 Zeus Capital Limited (Joint Broker)

 Simon Johnson                                                +44 (0) 20 7614 5900

 Louisa Waddell

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

 Christopher Laing

About Petro Matad

Petro Matad is the parent company of a group focussed on oil exploration, as
well as future development and production in Mongolia. At the current time,
Petro Matad holds 100% working interest and the operatorship of two Production
Sharing Contracts with the Government of Mongolia. Block XX has an area of 218
square kilometres in the far eastern part of the country and Block V has an
area of 7,937 square kilometres in the central western 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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