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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.

Full Petro Matad Limited profile here
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Petro Matad mulls stimulation programme for DT-8 well

17th Oct 2011, 2:49 pm by Jamie Ashcroft small amount of oil and water was recovered from the primary zone in DT-8

Mongolia focused oil and gas firm Petro Matad (LON:MATD) told investors that it is considering a stimulation programme on the Davsan Tolgoi 8 well after it failed to produce oil under natural pressure.

Last month the DT-8 reached a total depth of 1,850 metres. The well penetrated 127 metres gross thickness of the Uppermost Tsagaantsav formation, from a depth of 1,670 metres. It has subsequently been tested.

Between September 15 and 28 September it tested two zones in the Uppermost Tsagaantsav formation, and limited oil and water analyses were received on October 14.

A small amount of oil and water was recovered from the primary zone, Petro Matad said. It added that pressure build-up data indicates low permeability for the zone, with some permeability impairment from exposure to drilling fluids.  

However, according to Petro Matad, the presence of oil and the petrophysical log characteristics support consideration of this zone as a candidate for future stimulation.

"The DT-8 test is a continuation of Petro Matad's initial assessment of the flow characteristics of Tsagaantsav reservoirs,” said chief executive Doug McGay.

“We are finding that the completion characteristics of both the Uppermost and the Lower Tsagaantsav reservoirs are similar to neighbouring producing areas where fracture stimulation is needed to overcome the permeability challenges associated with fluid-sensitive clay and volcanic-derived cements in these complex reservoirs."

At 14:45 on AIM Petro Matad shares were down 3.5p, or 11p, trading at 28p a share.

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