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.
Westhouse repeats bullish view on Petro Matad after its 4th oil discovery in a row
Westhouse Securities oil and gas analyst David Hart reckons Petro Matad (LON:MATD) could worth twice its current value on the AIM market.
Yesterday the Mongolia focused oil firm revealed the initial results from its fourth successive exploration success on Block XX.
The analyst repeated a ‘buy’ recommendation which targets 341 pence a share (current price: 164.5 pence).
“All four wells which the company has drilled so far on Block XX have identified the presence of significant oil accumulations and are potentially productive,” Hart said.
On Monday Petro Matad told investors that it has now drilled through all of its targets in the Davsan Tolgoi-4 (DT-4) exploration well.
It was the AIM-listed explorer’s fourth well in a row to successfully find hydrocarbons, but crucially this is the first one to target this particular part of Block XX.
The well was designed to test a four-way closure in the Davsan Tolgoi Shoroo Prospect – which has previously been referred to as Davsan Tolgoi West.
Prior to drilling the Shoroo Prospect was estimated as a 41 million barrels un-risked recoverable resource, with a 69 percent chance of success. Petro Matad stressed that Davsan Tolgoi Shoroo is a separate structure from the discoveries made in the earlier DT-1, DT-2, and DT-3 wells.
"The discovery of significant hydrocarbons in DT-4 highlights the prospectivity of the Lower Tsagaantsav formation, particularly as it tested an entirely separate structure from the previously drilled Davsan Tolgoi anticline,” chief executive Douglas McGay said.
“This is a further step in our knowledge of the reservoir and its potential resource.”
McGay said: “The preliminary results from DT-4 indicate that it is very similar to wells that have successfully produced in the neighbouring Block XIX (operated by Daqing Oilfields) with which we share the Lower Tsagaantsav Formation.”
"DT-4 was sited and spudded before the re-interpretation of the 3D seismic survey. It was designed to solely target the Lower Tsagaantsav formation within the greater Davsan Tolgoi complex.”
