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 encounters live oil in DT-4 well's first target reservoir
Petro Matad (LON:MATD) has now entered the first target in the DT-4 well, on the Davsan Tolgoi oilfield in Mongolia, and it confirmed it has encountered live oil shows.
The 2011 drill programme began just last week when the firm’s specially winterised rig resumed work after drilling was suspended, at 1,271 metres, in early December as the Mongolian winter closed in.
It entered the Lower Tsagaantsav sandstone reservoir on 2 May 2011 at 1,798 metres and coring operations have now begun to allow for further analysis. Two lengths of core have been recovered to date.
Petro Matad told investors that samples from 1,798 metres consisted of coarse sandstone with good inferred porosity and live oil shows.
It also highlighted that the first 8 metres of core, from 1,798 metres, consisted of medium to coarse sandstone grading to conglomerate, with local bleeding live oil and with patchy dark yellowish brown oil staining throughout.
“The core has a moderate to strong hydrocarbon odour, patchy bright yellow direct fluorescence and slow streaming milky white fluorescence; each physical characteristics that are consistent with the existence of oil,” the company said.
The length of core, from 1,807 to 1,814 metres, has not been completely logged yet.
According to Petro Matad the Lower Tsagaantsav formation is estimated to be around 210 metres thick at this location, based on the latest reprocessed 3D seismic data.
It said that drilling operations are continuing and it will decide on the amount of coring that will be carried out as the well progresses. Furthermore once the well has reached target depth at 2,020 metres it will be prepared for down-hole wireline logging.
