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 engages Ansai Yuehua to drill Block XX in Mongolia
Mongolia-focused Petro Matad Ltd (AIM: MATD) has hired Ansai Yuehua Oil Tech Company to drill its Davsan Tolgoi prospect on Block XX in eastern Mongolia.
The agreement provides for the drilling of the first well Davsan Tolgoi-1(DT-1) with the option to continue the drilling agreement until the completion of work on up to five additional wells.
Petro Matad opted to accelerate drilling on the prospect after a study by independent well drilling consultancy IPS Australia showed that the programme could commence in 2009 with all safety, environmental and engineering issues covered by the budget.
The DT-1 well will be located 5 km (kilometres) off the nearest oil discovery well and 10 km updip from the Tolson Uul oil field in the adjacent Block XIX. Ansai Yuehua has provided a drilling rig which has already been mobilized to the drilling location. Subsurface technical consultancy Isis Petroleum has recommended a multi-well programme within the Davsan Tolgoi prospect after evaluating potential drilling locations in the north-east of Block XX.
Data from a 3D seismic survey put Block XX’s unrisked prospective resource at 638 mmbbl (million barrels of oil) and risked resource at 112 mmbbl.
Shares in Petro Matad rose 5.5% on the news.



















