www.petromatad.com
Petro Matad is the parent company of a group focused on oil exploration, as well as future development and production in Mongolia. The Group’s principal asset is the Production Sharing Contract (PSC) over Matad Block XX, a petroleum block with an area of 14,250km2 in the far eastern part of Mongolia, near the Chinese border. Recently the company signed two more Production Sharing Contracts on Bogd Block IV and Ongi Block V, a total of approximately 71,000km² in central Mongolia. Petro Matad Limited’s shares were admitted to trading on AIM, London Stock Exchange, on May 1st, 2008. The company’s largest shareholder is Petrovis LLC, the largest importer and distributor of petroleum products in Mongolia. The company is the first substantially Mongolian owned company to have its shares admitted to trading on any major international stock exchange.
Petro Matad says DT-1 well wireline logs confirm initial promising data
Mongolia-focused Petro Matad Ltd (LON:MATD) said wireline logs from the Davsan Tolgoi-1 (DT-1) exploration well in Block XX indicate indicate good log porosities, 25 percent average on average, and permeabilities concentrated in six sandstone zones, with a total net pay of 12 metres. Further analysis needs to be undertaken, but the logs confirm the promising initial results.
The group reported two weeks ago that DT- reached a final measured depth of 1,220m, having passed through the targeted Tsagaantsav Formation from 1,075 to 1,146 metres, then entering metamorphic basement. The entire 71m section of the Tsagaantsav Formation contained oil shows and elevated mud gas, with indications of live oil through six sandstone and conglomerate units totalling about 35 metres in aggregate.
Samples have been forwarded to laboratories in the US for reservoir and oil characterisation, and results will be utilised in the design of the subsequent well testing portion of the programme.
The company is currently sourcing and evaluating workover rigs for those tests and a decision on which well will be tested this year will be made on completion of the drilling element of the three well drill programme.
The drill rig will shortly be moved to the site of the Company's second well, DT-2, and a further announcement will be made when drilling operations commence.
On Petro Matad’s Blocks IV and V in central Mongolia, the first 2D seismic survey has commenced. A mongolian geophysical contracting company is undertaking the 360 km survey, covering 7 seismic lines, under Petro Matad's management and supervision.
In addition, an in-fill gravity survey over the entire two blocks is currently being performed by Mongolian geophysical consultants. The 4,500 station survey will be added to the previous modern gravity data, providing a 2km x 2km grid over the entire 73,498 square kilometre combined area of the Blocks. The existing gravity data delineated five sub basins that are the initial focus of the seismic programme.
Seismic acquisition during 2010, rather than during 2011 as originally planned, is the result of rapid advancement of the company's geological knowledge of the central Mongolian basins.
The company's in-house exploration team recently completed field expeditions with the assistance of international and Mongolian experts that identified prospective structures and confirmed principal elements of Mesozoic hydrocarbon systems across the Blocks. These recent advances have streamlined the exploration programme with the goal of defining drillable targets in a much shorter time frame than originally envisaged.
CEO Douglas McGay said: "We are very happy with the initial results from our first well to date, and look forward to the completion of the analysis. The remaining two wells of the 2010 drilling programme will be designed to maximise our knowledge and confirm the potential of the main Davsan Tolgoi anticline. In addition we are optimistic about the long term potential of Blocks IV and V.”
