REG - Petro Matad Ltd - Planned production startup at Heron-1

Petro MatadAnnouncement

22/10/2024 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241022:nRSV0986Ja&default-theme=true

RNS Number : 0986J  Petro Matad Limited  22 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.

 

 22 October 2024

 

Petro Matad Limited

("Petro Matad" or the "Company")

 

Planned production startup at Heron-1

 

Petro Matad Limited (AIM: MATD), the AIM quoted Mongolian oil company,
provides the following update on the planned start of oil production in its
Block XX Production Sharing Contract area in eastern Mongolia.

 

Highlights

·    Construction and equipment installation activities at the Heron-1
well pad have been completed and commissioning of the site is ongoing. Start
of production from the well is planned on or before 25 October 2024.

·    The Company will host a delegation headed by the Ministry of Industry
and Mineral Resources for a production startup ceremony at site on 25 October.

·    The Cooperation Agreement with PetroChina Daqing Tamsag for use of
the Block XIX production facilities and export infrastructure is in near final
form.

 

Heron-1 production startup

Site construction and equipment installation activities on the Heron-1 well
pad have been completed. The beam pump, generator and storage tanks are now
being commissioned and will be ready for production startup on or before 25
October 2024. Petro Matad's in-field operations team is at site and all
logistical preparations are being made to be ready to start the transportation
of produced fluids to PetroChina's facilities some 20 km to the north in Block
XIX.

The Company will be honoured to host a delegation headed by the Ministry of
Industry and Mineral Resources at a startup ceremony at the well site on 25
October. The delegation will include senior representatives of the Ministry,
senior officials of industry regulator the Mineral Resources and Petroleum
Authority of Mongolia (MRPAM), and invitees also include the Provincial and
District Governors and their respective senior officials as well as
representatives of PetroChina.

The Cooperation Agreement with neighbouring operator, PetroChina Daqing
Tamsag, is in near final form. It includes provision for the offloading,
measurement, processing, export and sale of the Block XX production. All fees
to be levied are in line with expectations and the only item remaining to be
agreed is the administration fee to be paid to PetroChina. Whilst PetroChina
has advised that it will likely take some time for the agreement to be signed
by its Headquarters, Petro Matad, PetroChina and MRPAM have all agreed to get
Block XX production operations started ahead of the operational winter shut
down in late November. Production, processing and export activities continue
through the winter months, so it is important to get these started in advance.

 

Mike Buck, CEO of Petro Matad, said:

"We have waited a long time to get the Heron-1 well into production and we are
pleased to have reached this important milestone. We very much appreciate the
support of the Ministry and MRPAM and the cooperation that PetroChina is
providing. We are also very grateful for the hard work and enthusiasm of our
dedicated team and for the patience and continued support of our
shareholders."

 

Further operational updates will be provided in due course.

 

- Ends -

For 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

 

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 a 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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDQKBBNPBDKBKB