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 makes rapid progress with DT-3 well at Davsan Tolgoi oil project
Petro Matad (LON:MATD) said its Davsan Tolgoi (DT)-3 well in Mongolia reached 345 metres on Sunday, just two days after its spud date.
The depth marks the first casing point, where the first strong casing will be set and cemented. Following that, the well will continue drilling the second and final string to its target depth of 1,200 metres.
Westhouse welcomed the update, highlighting the rapid progress with the DT-3 well and the company’s effort to further accelerate the work programme with additional equipment.
The broker also noted the lab results that were included in the same report, which it said were positive as they have found indications of hydrocarbons within a second zone in DT-1, as well as confirmed migration and source.
DT-3 is the third exploration well to be spudded as part of Petro Matad’s three well drilling programme for 2010 on its PSC (production sharing contract) on Block XX.
The two previous wells tested a subsidiary closure along the crest of the Davsan Tolgoi anticline and showed a shared hydrocarbon column slightly over 100 metres in height.
Petro Matad said that DT-3 will be well positioned to test for any hydrocarbon accumulations in an anticlinal closure in the Upper Zuunbayan formation as well as in fractured basement.
Petro Matad is looking to add an extra drilling rig and a workover rig to try to achieve as much as possible prior to the end of the calendar year. The company is currently monitoring the conditions on site for engineering and health and safety issues that can be brought by the approaching winter conditions.
The company simultaneously reported on laboratory results for the DT-1 well.
The fluid inclusion analysis of the DT-1 well identified two zones of anomalous hydrocarbons, one of which was not found during the drilling operations.
The fluid inclusion study concluded that DT-1 penetrated oil in the Tsagaantsav formation, a conclusion that is consistent with observed oil shows, mud gas signature, and calculated hydrocarbon saturations.
According to Petro Matad, the geochemical data from DT-1 further proves that the Davsan Tolgoi anticline is a regional focus for oil and gas migration.
“These laboratory results provide quantitative proof of the previously observed well data.
“They have provided more surety in de-risking this aspect of the prospective resources,” said chief executive of Douglas McGay, adding that the previously undetected indication of hydrocarbons in the Zuunbayan Formation is also a welcome result.
