REG - Petro Matad Ltd - Operational Update

Petro MatadAnnouncement

24/09/2025 07:00

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RNS Number : 5275A  Petro Matad Limited  24 September 2025

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.

Petro Matad Limited

('Petro Matad' or the 'Company' or the 'Group')

Operational Update

LONDON, 24 September 2025: Petro Matad Limited, the AIM quoted Mongolian oil
company is pleased to provide the following update.

 

Key updates

·    Block XX acidisation operations completed at Heron-2. Well clean up
continuing.

·    Workover rig mobilising to Gazelle-1 for well testing programme.

 

Well Testing Operations

As previously reported, activities to acidise and re-test the Heron-2 well
commenced on 25 August. The well was re-entered and cleaned out by means of a
swabbing operation which uses a tool run on wireline to lift fluid out of the
well bore. During the pre-acid clean up gas and oil were observed in greater
concentrations than those seen in the original well testing programme
conducted in October 2024.

The acid wash programme was then completed successfully with the planned
volume of acid injected into the reservoir. After a 20 hour soak the swabbing
string was re-run to recover the injected fluid, clean out the hole and begin
recovery of reservoir fluid. However, with 640 barrels of injected fluid still
remaining to be recovered, the Company has now determined that the quickest
and most cost-effective way to get a definitive result from the re-test of
Heron-2 is to run a completion string, install a surface pump and conduct a
pumped test.

Work has now started to complete the well and install temporary surface
production equipment. PetroChina has provided us with a suitable second-hand
beam pump and our construction contractor has mobilised to site. We expect to
be ready to start pumping operations by month's end to recover the remainder
of the injected fluids and then determine the flowing reservoir fluid and the
well's productive capacity. Should a commercial oil rate be achieved the
temporary facilities can continue to operate whilst a permanent storage tank
is installed. PetroChina has identified a second-hand tank that we can use if
required.

The workover rig is now moving to the Gazelle-1 well. All permits and
approvals are in place to commence the well test programme which we anticipate
will start before the end of September and complete by the end of October
after which the rig will move to Gobi Bear-1.

Mike Buck, CEO of Petro Matad, said:

"The Heron-2 acid job went according to plan but taking into account the
significant volume of unrecovered injected fluid in the well, completion and
pumping offer a timely and cost-effective way to get a definitive result in
this re-test. We are grateful to our neighbours PetroChina for providing
equipment to enable us to adapt the Heron-2 programme expeditiously. We look
forward to a smooth rig up at Gazelle-1 and to testing the well during
October."

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 Broker)
 Toby Gibbs                                     +44 (0) 20 7408 4090

 Harry Davies-Ball

 Zeus (Joint Broker)                            +44 (0) 20 3829 5000

 Simon Johnson

 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. The Company also holds a
100% working interest and operatorship of the Borzon Block VII Production
Sharing Contract with an area of 41,141 square kilometres in southern central
Mongolia.

 

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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