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 spuds Davsan Tolgoi-9 exploration well in Mongolia
Mongolia focused oil explorer Petro Matad (LON:MATD) confirmed that it has now spudded the Davsan Tolgoi-9 well on Block XX.
This latest well will target the Lower Tsagaantsav reservoir, which Petro Matad has found to be oil bearing in other parts of the block, around 2.5 kilometres south of the DT-4 that was drilled back in May.
DT-9 was spudded yesterday and it is being drilled vertically to target depth of around 1,750 metres.
On Tuesday announced that the previous well, DT-8, had struck oil. The well penetrated 127 metres gross thickness of the Uppermost Tsagaantsav formation, from a depth of 1,670 metres. Within this formation, between 1,714 to 1,720 metres, the well encountered live oil shows. Petro Matad said that these shows consisted of ‘spotty fluorescence’ and ‘fast bluish-white’ to ‘yellow-gold’ cut, which indicates the presence of hydrocarbons.
The company said that initial petrophysical analysis has identified 8.5 metres of net pay, averaging 18.5% porosity for the Uppermost Tsagaantsav interval.
Petro Matad also told investors on Tuesday that it has mobilised a work-over rig, and equipment, to Davsan Tolgoi. Well testing operations are planned to get underway this week. The programme is designed to sequentially test the six separate zones of Uppermost Tsagaantsav reservoir in DT-1.
Once the DT-1 well is complete the rig will move on to test the DT-2, DT-5, DT-7 and DT-8 wells have all been identified as production test candidates in the Uvgan Gol paleovalley reservoir. The DT-3 and DT-4 are slated for production testing of the Lower Tsagaantsav reservoir and the Upper Zuunbayan reservoir will be tested in DT-3.
