REG - Petro Matad Ltd - Operational Update

Petro MatadAnnouncement

Thu 07:00

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RNS Number : 6297C  Petro Matad Limited  09 October 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, 9 October 2025: Petro Matad Limited, the AIM quoted Mongolian oil
company is pleased to provide the following operational update.

 

Key updates

·    Gazelle-1 well test exceeds expectations.

·    Heron-2 completion run and pumping has commenced.

·    Heron-1 electrification installation completed.

 

Gazelle-1 Well Testing Operations

After the short move from the nearby Heron-2 location, the service rig was
installed at Gazelle-1 in early October and testing operations began with the
perforation of an 8 metre zone across pay zones identified on logs in the
Tsagaantsav Formation between 2057 and 2065 metres measured depth (MD). On
opening the well, gas and oil flowed to surface without the need for
artificial lift. The first flow period of the test was conducted on a 1/8 inch
choke and the well flowed at a stabilised rate of 160 barrels of oil per day
(bopd). The second flow period on a 3/16 inch choke flowed at 300 bopd and on
a 1/4 inch choke a rate of c. 460 bopd was achieved. No formation water was
observed throughout the flow periods. Oil gravity has been measured on site at
43º API which is similar to Heron-1 crude. The well has now been shut-in to
gather pressure build-up data.

The performance of Gazelle-1 on test has exceeded expectations and so the well
will now be completed for production. The rig will remain on site to run the
completion string after which the surface production facilities will be
installed. Neighbouring operator PetroChina has made available equipment from
its inventory to allow us to expedite the well completion and production start
up and we are targeting the start of production from Gazelle-1 before the end
of October. The oil sales agreement with Block XIX has provisions within it
for additional wells to be brought onstream and the incorporation of Gazelle-1
production is already under discussion.

The need to retain the rig at Gazelle-1 to make the well ready for production
as a matter of priority means that there will be insufficient time ahead of
the winter shut down in November to carry out the planned test of the Gobi
Bear-1 well. Plans are being made to conduct this operation next April at the
start of the 2026 operating window.

Heron-2 Completion

The installation of the beam pump and temporary offloading facilities at
Heron-2 has been completed and pumping commenced on 6 October. As expected,
the beam pump is proving much more efficient at recovering the remaining frack
and acid wash fluids than DQE's swabbing operation and so we expect to
complete the well clean out and to determine the flowing formation fluid and
the rate capability of the well quicker and more cost effectively.

Heron-1 Electrification Project

The connection of the Heron-1 production facility to the national electricity
grid has been completed. The 10kV transmission line and the current supply
load from the recently upgraded provincial power plant can provide sufficient
power for Heron-1 and several additional wells in Block XX. Planning and
permitting have started to facilitate the connection of both Heron-2 and
Gazelle-1 to the grid should it be deemed advantageous. Final commissioning
and certification of the transmission line and substation for Heron-1 are
ongoing with the aim to energise the line by mid-October. Provision of
electricity to the Heron-1 wellsite and cessation of using diesel generators
for power not only reduce operating costs by an estimated 15% but will also
significantly reduce emissions and simplify our production operations.

 

Mike Buck, CEO of Petro Matad, said:

"We are delighted that the results from the Gazelle-1 well test have exceeded
our expectations and we are now prioritising getting the well onstream as it
shows the potential to significantly increase our daily production and
revenue.

We are also glad to see the start of an efficient down hole clean up at
Heron-2 which should give us the definitive results on flowing fluid and well
rate that we seek.

We are disappointed that we will not be able to test Gobi Bear-1 during this
operational season but there is minimal additional cost to remobilise for this
activity in 2026 and right now, given the enthusiasm with which Gazelle-1 has
tested, the production addition must be our first priority.

The Company is very grateful to its field staff who are once again executing a
very busy programme with dedication and diligence."

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

 

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 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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