Petro Matad Limited (AIM:MATD, OTC:PRTDF) shares fell 30% on Friday after the Mongolia-focused operator updated on its outstanding oil payments.
In a statement, the company said that invoices from Block XX’s Heron-1 well production between October and April are “ready for payment”, but PetroChina has asked for confirmation from the authorities that ‘there will be no customs, VAT or tax charges’.
“That engagement is underway and if the response is slow in coming, Petro Matad and PetroChina are discussing payment of the majority of the amount due with a percentage withheld pending confirmation,” Petro Matad said.
Meanwhile, Petro Matad also highlighted progress in the field, where Heron 1 is producing around 160 barrels of oil per day via artificial lift.
It is also planning well tests at Gazelle 1 and Gobi Bear 1, which could enable near-term production through existing facilities.
Meanwhile, it added that talks are ongoing with potential partners on Block XX.
Petro Matad shares were down around 32% on Friday, changing hands at 1.58p.