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: still scope to develop Davsan Tolgoi after well disappointment
Mongolia-focused Petro Matad (LON:MATD) said today that there still remains “scope for the development of other parts” of its Davsan Tolgoi prospect after it reported that no oil was recovered during the testing of the Davsan Tolgoi 11 (DT-11) well.
The firm said that the oil shows that had been encountered and previously reported are now considered to be residual oil, adding that oil observed in the Tsagaantsav reservoirs in the DT-1, DT-2 and DT-3 wells along the crest of the Davsan Tolgoi anticline is also now interpreted as residual oil.
However, four wells drilled at a lower elevation to the crest of Davsan Tolgoi, or on separate structures, are still considered valid candidates for further testing, said Petro. Meanwhile, the firm said, the drilling programme to date has proven the fundamentals of a petroleum system on Block XX, in eastern Mongolia where Davsan Tolgoi is located.
Petro said that it is continuing to develop new leads and prospects in the greater Davsan Tolgoi area from detailed seismic interpretation and that the processing and interpretation of the 2011 2D seismic programme on the six sub-basins of Block XX is also continuing.
“We are disappointed that the test results from DT-11 have revealed that the crest of Davsan Tolgoi anticline does not contain commercial oil,” said Petro Matad’s chief executive officer, Doug McGay. “However it is important to note that the focus on the prospect on the crestal area is only one component of Davsan Tolgoi and there is still scope for the development of other parts of the prospect. In addition there remains advanced exploration potential in the area around Davsan Tolgoi and the other basins in Block XX are developing into promising plays.”
Shares in Petro Matad had fallen by 13.95 per cent to 18.5 pence each by 11:27am today.
