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 breaks winning streak as DT-6 well comes up dry
Petro Matad’s (LON:MATD) winning streak has come to an end. This afternoon it confirmed that the Davsan Tolgoi-6 (DT-6) well, on Block XX in Mongolia, failed to find hydrocarbons.
The preceding five wells all discovered oil. Chairman Douglas McGay described the outcome of DT-6 as a ‘statistically acceptable’ result.
"The absence of hydrocarbons in DT-6 is disappointing,” McGay said.
“When taken into the context of the previous five successful wells and the complex nature of the Davsan Tolgoi Prospect, it represents a statistically acceptable result.”
DT-6 was drilled to total depth of 1,923 metres into volcanic basement rocks, below the Tsagaantsav reservoir objectives. Petro Matad completed wireline logging and petrophysical analysis, but found no hydrocarbons through either method. The well has now been cased and cemented.
The well was targeting the centre of a large seismic anomaly in the Uppermost Tsagaantsav formation. In DT-6 the target was 404 metres lower than the oil accumulations encountered in both DT-1 and DT-2.
Petro Matad said that the well encountered this primary objective between 1,532 and 1,690 metres, where the reservoir rock exhibited good reservoir development but negligible hydrocarbon saturation.
It will now integrate the results from DT-6 and DT-5 results, along with 3D seismic interpretation.
“The presence of significant hydrocarbon saturation at DT-5 and its absence at DT-6 will require adjustment to the initial trap model for Uvgan Gol Prospect,” the company said.
Meanwhile the site for DT-7 is being prepared. This next well is designed to test a different target, the Davsan Tolgoi Mod prospect – about 2.25 kilometres southeast, and approximately 360 metres higher than DT-6.
McGay added: “The company is pursuing an evolving, but aggressive exploration programme on Davsan Tolgoi and the data from this and previous wells is assisting our exploration professionals in their understanding of the Prospect, and the location of future drilling."
