REG - Petro Matad Ltd - Petro Matad Operational Update

Petro MatadAnnouncement

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RNS Number : 4080T  Petro Matad Limited  18 February 2026

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, 18 February 2026: Petro Matad Limited, the AIM quoted Mongolian oil
company, is pleased to provide the following operational update.

 

Key updates

·    All production revenue withheld by PetroChina during 2025 has been
paid - totaling $1.03 million.

·    The wording of the contract to cover the 2026 Oil Sales Agreement is
being finalised.

·    Block XX production continues in line with expectations.

·    Farm-out discussions with one counterparty are nearing completion.

·    The 200MW Hybrid renewable energy project is progressing well.

 

Oil Sales Agreement

Discussions with PetroChina on the Oil Sales Agreement and its withholding of
revenue from Petro Matad's 2025 production invoices have been completed and
PetroChina has paid $1.03 million representing all of the revenue previously
withheld. Wording is now being finalised for the 2026 Oil Sales Agreement
incorporating the revisions required by both parties based on the lessons
learned from the 2025 contract.

 

Block XX production

Heron-1 continues to produce in line with the Company's forecasts and averaged
161 barrels of oil per day (bopd) through 2025 which was ahead of the
Company's initial expectations.

As previously reported, Gazelle-1 started to produce formation water along
with oil, and rate tests were conducted to optimise oil production and
minimise water encroachment. These tests determined that water production was
controlled and stabilised at c.25% when the pump was set to deliver total
fluid rates of up to 180 barrels per day. At this pump setting, Gazelle-1 is
now producing c. 135bopd with the reservoir still showing good deliverability.

 

Farm-out

Discussions with one potential farm-in partner for Block XX are nearing
completion and we are pushing to complete negotiations in short order. In
parallel we are continuing discussions with other potentially interested
farm-in partners for Block XX and for Block VII.

 

 

SunSteppe Renewable Energy

200MW hybrid wind, solar, and battery energy storage project

SunSteppe Renewable Energy (SRE) continues to advance its portfolio of
large-scale renewable energy projects with a current focus on its 200MW hybrid
wind, solar, and battery energy storage project in Tuv Province. This project
is under an exclusive development agreement with a Mongolian industrial group
that recently commissioned the first phase of a new-build 600MW privately
financed coal-fired power plant and is eager to develop a substantial
renewable energy project in parallel.

SRE has completed the key feasibility study for the project and has submitted
it for approval to the Ministry of Energy's Science and Technology Committee.
The environmental and grid connection studies have also been completed with
the latter confirming the technical feasibility of this project. The 120m wind
mast installed in December is performing well and has collected 2 months of
high quality data so far.

The project has been discussed with potential international partners and
financiers, with a number showing interest, reflecting the strength of the
existing power purchase agreement framework and the project's advanced
development status. Subject to regulatory approvals, SRE is targeting
Ready-to-Build status on this project in 2026.

24MW Green Hydrogen

On Mongolia's first green hydrogen initiative at the Oyu Tolgoi copper mine,
near-term decision-making has progressed more slowly than hoped but the
project retains strong institutional support. SRE continues to work closely
with Oyu Tolgoi to progress the project and with government stakeholders. The
Japanese government grant framework remains in place, with flexibility for
extension sought and secured. In parallel, SRE is actively evaluating the
deployment of green hydrogen for mining transport applications and has engaged
with other major mining groups in Mongolia.

50MW Battery Energy Storage System

For its utility-scale Battery Energy Storage System (BESS) development at
Choir, SRE's consortium is ready and well placed to participate in the
government auction for the project. While awaiting the government's
announcement of the auction timeline and terms, SRE is also assessing options
to integrate large scale BESS with renewable and industrial power assets
already in operation in country.

Energy Export

SRE's CEO remains actively involved in an advisory capacity on
government-to-government discussions between Mongolia and China on
cross-border energy cooperation. Meanwhile, a preliminary feasibility study on
energy export has been completed by China's State Power Investment Corporation
(SPIC) in collaboration with SRE and additional technical and commercial work
has been undertaken jointly with ACWA Power of Saudi Arabia. These studies
have confirmed Mongolia's strong renewable energy resource potential and
competitiveness as a clean-energy exporter and SRE has identified significant
areas of suitable land for export-scale renewable development with land lease
approvals progressing.

Mike Buck, CEO of Petro Matad, said:

"We are very pleased to have been paid all the revenue from our 2025
production invoices. We are working directly with the PetroChina Finance
Department to finalise the wording of the 2026 Oil Sales Agreement.

We are encouraged by the progress SRE is making on the 200MW Hybrid project
which we think has a good chance of reaching Ready-to-Build status during the
year. Our portfolio of projects is well-positioned in Mongolia's emerging
renewables, green hydrogen and battery storage sectors, while ongoing
government discussions are underlining the country's exceptional potential as
a competitive clean-energy exporter in the region. "

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. The Company also has a 50% holding in the SunSteppe Renewable Energy
joint venture pursuing utility scale renewable energy projects in 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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