Petro Matad Ltd - Operational Update and Planned Retirement of CFO
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY PETRO MATAD LIMITED TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU) NO. 596/2014 ("MAR"). ON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE ("RIS"), THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
Petro Matad Limited
('Petro Matad' or the 'Company')
Operational Update and Planned Retirement of CFO
Petro Matad Limited, the AIM quoted Mongolian oil company, provides the following operational update and announces the year-end 2020 retirement of
Block XX Exploitation Licence
The Block XX Exploitation Licence (EL) application remains with the Ministry of Mining and Heavy Industry (MMHI) awaiting the convening of the meeting of the Mineral Resource Professional Council (MRPC) to review and approve the Heron reserves report. This meeting has been delayed due to a reorganisation within MMHI which followed
This has resulted in an unavoidable delay for the Company in progressing the EL application, as we had anticipated that the MRPC would have concluded its review of the Heron reserves report before the end of September. We have been advised that the ministerial ratification of the MRPC is imminent and review of the reserves report is included as a matter of urgency on the MRPC agenda. We continue to work closely with the MMHI to overcome this delay, meet the MRPC and secure the approval of the reserves report to allow us to progress to the remaining stages of the approval process.
As previously advised, once the reserves report has been approved, the EL award process requires the development area to be agreed with industry regulator Mineral Resources and Petroleum Authority of Mongolia (MRPAM) and the Plan of Development must be reviewed and approved by MRPAM and MMHI/MRPC. The Plan of Development is ready for submission to the relevant bodies as soon as the reserves report approval is in hand.
Detailed Environmental Impact Assessment
The Company has had its Detailed Environmental Impact Assessment (DEIA) for the Heron Development approved by the Ministry of Environment. This is a major milestone as the field work, documentation and local community engagement requirements in the preparation of the DEIA are significant and time consuming. An approved DEIA is one of the documents required to get the final ministerial sign off on the EL approval. Securing the DEIA approval whilst countrywide Covid-19 restrictions have remained in force was achieved with the cooperation of central and local government bodies and with the hard work of the Company's HSSE and Community Relations departments.
The assay of Heron 1 oil has also been completed and the results are now under review. Overall, and as expected, the assay has demonstrated that the oil from Heron 1 is very similar to the oil produced in the neighbouring Blocks XIX and XXI. Heron 1 oil is a light, sweet, waxy crude with an API gravity of 44o making it one of the lightest oils found to date in the Tamtsag basin.
Retirement of Chief Financial Officer
The Company is today also announcing the retirement of
Petro Matad thanks
"Whilst the delay in progressing the Block XX Exploitation Licence application has been unfortunate, we are doing all we can to support the authorities to expedite the MRPC meeting and we have completed all the necessary preparations to be ready for the subsequent phases of the approval process.
Meanwhile, securing the approval of the DEIA is a major achievement and we are pleased to have this in hand. We also continue to carefully manage our cash resources whilst we pursue the permits we need while investigating various funding options for our future operations.
With regard to the retirement of our long-serving CFO, I am honoured to have had the opportunity to work with
- Ends -
Further information please contact:
Petro Matad Limited
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+97 670 141 099 / +97 675 751 099
Shore Capital (Nominated Adviser and Broker)
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+44 (0) 20 7408 4090
FTI Consulting (Communications Advisory Firm)
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+44 (0) 20 3727 1000
About Petro Matad
Petro Matad is the parent company of a group focussed on oil exploration, as well as future development and production in
Petro Matad Limited is incorporated in the
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