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 confirms presence of working petroleum system in Block V, Mongolia
Petro Matad (LON:MATD) today announced that it has confirmed the presence of a working petroleum system in the Tugrug basin, in Block V Mongolia.
The explorer today gave investors an update on its operations as it nears the end of its field season on Block IV and V Production Sharing Contract (PSC) areas in central Mongolia.
The exploration programme consisted of stratigraphic core drilling, 2D seismic acquisition and field geology operations.
It provided the first documentation of ‘live oil’ and active oil migration in central Mongolia, Petro Matad said.
"This year's exploration programme in Blocks IV and V was designed to progress the company's knowledge towards identifying drillable prospects,” said chief executive Doug McGay.
“The programme has achieved this objective and also confirmed the presence of a working petroleum system in the Tugrug basin, in Block V, which bodes well for the rest of the sub-basins in these two Blocks.
"The identification of multiple phases of live hydrocarbons in Block V is a highly significant development for hydrocarbon exploration in central Mongolia.”
Petro Matad explained that the Block IV and V rift basins are located beneath the modern "Valley of the Lakes". This is an area where the geological features have enhanced the trap potential compared with the producing basins of eastern Mongolia, it said.
The group said that the exploration highlights included the confirmation of oil generation and migration in the Tugrug Basin of Block V.
As well as the documentation of thick, rich oil shale source rock throughout Blocks IV & V; the identification of favourable reservoir characteristics in core and outcrop; the acquisition of 1,842 kilometres of 2D seismic data for both blocks.
It also told investors that it has delineated 6,700 square kilometres of potential oil generation kitchen areas within the two blocks and identified multiple anticline, fault, and unconformity trap leads within and adjacent to these kitchens.
“Petro Matad has pioneered the previously unexplored basins in the eastern two-thirds of Mongolia and provided the first documentation of a viable hydrocarbon system in this vast region,” McGay said.
“Additionally, the source rock quality, thickness, and maturity compare very favourably with the producing fields of eastern Mongolia (Tolson, Tsagaan Els and Zuunbayan).
“The potential for higher quality reservoir rocks in central Mongolia is also a most encouraging development.
He added: “We look forward to the finalisation of stratigraphic drill hole in the Biger Basin on Block IV. Further analysis and interpretation will be undertaken during the winter.
“As well as providing us with even better understanding of these exciting areas, the studies will help our 2012 exploration programmes, including investigating the potential for exploration drilling."
