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 receives valuable data from tests of its DT-4 well in Mongolia
Mongolia-focused oil explorer Petro Matad (LON:MATD) said this afternoon that it has received "valuable information" from the DT-4 well at its Davsan Tolgoi project.
The company has completed the analysis of initial test results for the Davsan Tolgoi 4 well (DT-4) and is designed a stimulation programme as well as contracting stimulation services for final completion of the well.
Results from tests on DT-4 conducted earlier this month were received on 23 September. Swabbing of the primary test objective (between 1,785 metres and 1,801 metres) recovered two litres of 42.5 degree API oil with no water, with an indicated un-stimulated flow rate of two barrels of oil per day.
“The testing of DT-4 has provided valuable information regarding the reservoir characteristics in the deeper parts of the Davsan Tolgoi area,” said Doug McGay, Petro’s chief executive officer. “The recovery of oil without water provides encouragement for the development of the DT-4 oil accumulation. The Lower Tsagaantsav reservoir characteristics at DT-4 compare favourably with historical production data from Block XIX, where all but four wells are reported to have required fracture stimulation, and where fracture stimulation is believed to have substantially increased production.”
McGay added that the 42.5-degree API oil recovered has confirmed Petro’s previous statement about the quality of the oil being expected to vary across the Davsan Tolgoi prospect. The final analysis of the oil obtained from DT-1 has revised the preliminary API announced on August 31 upwards to a grade of 26 degrees API. “When these results from DT-1 and DT-4 are compared with the reported average of 38 degrees API of the oil obtained by Petro China in the adjacent Block XIX, a clear picture of medium to high quality petroleum in the reservoirs fed by the Tolson Uul kitchens is emerging,” he said.
