Shares in Petro Matad Limited (AIM:MATD, OTC:PRTDF) rose on Monday as it inked an oil sales agreement with PetroChina Daqing Tamsag, for the production from Block XX in Mongolia.
Covering storage, processing, transport and export of crude oil the agreement enables the monetisation of the Heron 1 well, including past production between 24 October 2024 and 31 March 2025.
Invoices for this period have been submitted, and payment is expected in May.
Going forward, Petro Matad will submit monthly invoices and payment will follow in the last week of the same month. Pricing is linked to the average benchmarked price of Daqing crude oil.
"We are delighted to have signed the oil sales agreement for the commercialisation of Block XX production,” chief executive Mike Buck said in a statement.
“This involved a number of firsts for Mongolia and whilst the process was slow, we are grateful to the Mongolian authorities and to PetroChina for their support.”
In London, Petro Matad shares jumped 45%, to change hands at 2.33p each.