REG - Petro Matad Ltd - Operational Update: Velociraptor-1 well results

Petro MatadAnnouncement

10/07/2023 07:00

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RNS Number : 4756F  Petro Matad Limited  10 July 2023

 

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.

 

10 July 2023

Petro Matad Limited

("Petro Matad" or the "Company")

 

Operational Update: Velociraptor-1 well results

 

 

Result of the Velociraptor-1 Exploration Well

 

Petro Matad Limited (AIM:MATD), the AIM quoted Mongolian oil company,
announces that the Velociraptor-1 exploration well in the Taats Basin of Block
V located in central Mongolia reached a total depth (TD) of 1500m and wireline
logging has been completed but unfortunately all the reservoirs encountered
were water bearing.

 

The well came in close to prognosis at all levels. The primary objective Late
Jurassic/Early Cretaceous Undur Formation was encountered at 1170m and had
good quality reservoir sands interbedded with shales over a c. 200m interval.
In the secondary objective Early Cretaceous Shinehudag Formation, three thick
sand units were drilled with average porosity of around 18%. Good quality
electric wireline logs confirmed both objectives to be water wet.

 

The well will now be plugged and abandoned and the rig will be demobilised.
Operations were carried out on time and as budgeted with the full support and
cooperation of the local community. The well results will now be incorporated
into the Company's interpretation of Block V before any further operational
activity is undertaken in the area.

 

Mike Buck, CEO of Petro Matad, said:

 

"The results of the Velociraptor 1 well are obviously disappointing but such
high impact targets, drillable at modest well cost cannot be ignored when
exploring frontier areas. The well provides a valuable new data point to help
unlock the hydrocarbon potential of the southern Gobi. We will now incorporate
the well results into our overall evaluation of the area. Meanwhile our
operational focus shifts back to Block XX where the Heron development offers
near term oil production and revenue generation and where low risk, near field
exploration opportunities have already been identified which provide exciting
upside potential."

 

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 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 214
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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