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Market: AIM
Sector: Energy
EPIC: MATD
Latest Price: 13.25p  (-18.46% Descending)
52-week High: 173.50p
52-week Low: 13.50p
Market Cap: 24.65M
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Petro Matad Limited
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.

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Petro Matad stays positive on drilling programme

8th Jun 2011, 10:13 am The drilling rig is now being moved to the next site on the prospect, designated DT-6

Mongolia-focused oil group Petro Matad (LON: MATD) saw its shares ease after it issued an update on its drilling activities on the group’s Davsan Tolgoi Prospect on Block XX in Eastern Mongolia.

Drilling operations on the DT-5 well have been completed to a depth of 1,954m below surface with numerous thin zones of hydrocarbons identified. 

No oil shows were observed during drilling. The company intends to test the well during 2011 but feels stimulation will be needed to induce oil flow. A stimulation contract is being prepared with contractor DQ International.

The drilling rig is now being moved to the next site on the prospect, designated DT-6.

Petro Matad chief executive Douglas McGay said: "It is pleasing that our Davsan Tolgoi drilling programme continues to yield positive drilling results, with testable zones in each of the five wells drilled to date."

He assured investors that the company had always expected to see variations in well results during the exploration phase. “It is gratifying to see the presence of hydrocarbons in the Lower Tsagaantsav formation continuing to be relatively predictable," he added.

Analysts at Westhouse earlier this week sounded a very upbeat note on prospects for the group, highlighting its increasingly successful exploration programme, strong and capable technical team and 'exceptionally large' prospective exploration blocks.

The Westhouse analysts - David Hart, Peter Bassett and Andrew Matharu - point out that the company has a very active work programme lined up for the next 6-12 months.

In midmorning trade Petro Matad shares were down 29.5p to 139p.

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