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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 restarts Davsan Tolgoi-4 well after winter shut-down
Petro Matad Ltd (LON:MATD) said it has restarted drilling operations at its Davsan Tolgoi-4 (DT-4) well on Mongolia’s Block XX following the winter shut-down.
In early December 2010 it suspended the drilling of DT-4 at a depth of 1,271 metres and an orderly shutdown and hibernation was successfully carried out.
In the last few weeks the company and its drilling contractor, DQE International, have been undertaking preparatory work including the reinstatement of the drilling team and operational camp.
As previously announced the rig remained on-site throughout the winter months, it has now been re-commissioned, serviced and tested and work is currently being carried out on cleaning out the hole ahead of further drilling.
“Night time temperatures are still below zero, but 24 hour operations are anticipated to commence tomorrow and drilling towards the target depth of 2,020 metres is scheduled to recommence over the weekend,” Petro Matad said in an operational update.
Last month, the group added more than 200 million barrels of resources to the Davsan-Tolgoi prospect area. The resource uplift was due to the re-interpretation of existing seismic data because of the successful 2010 drilling programme.
Last year Petro Matad made three consecutive oil discoveries at Davsan Tolgoi, and by incorporating the new drill data it has been able to expand the prospect's recoverable resources.
It has added 275 million barrels of un-risked recoverable resources and 211 million barrels of risked recoverable resources - from a calculated 1.87 billion barrels of oil-in-place.
Petro Matad is the parent company of a group focused on oil exploration, as well as future development and production in Mongolia. The group holds the sole operatorship of three production sharing contracts (PSC) with the government. The principal asset is the PSC for Block XX, a petroleum block of 10,340 square kilometres in the far eastern part of the country. The two other Blocks, IV and V are located in central Mongolia and jointly cover 71,040 square kilometres.
