Petro Matad Limited (AIM:MATD, OTC:PRTDF) has reported continued stable production from its Heron-1 well at rates between 150 and 160 barrels of oil per day with a water cut of less than 3%.
To date, around 46,000 barrels have been produced and exported under an agreement with PetroChina.
"Stable production from Heron-1 is pleasing to see and resolving the remaining payment issues is a priority,” said chief executive Mike Buck.
“Meanwhile, we are putting our newly raised funds to good use on activities targeting opex reduction and revenue increases.”
The company expects its next oil sales payments in August. Discussions with tax authorities continue to confirm that no VAT or customs duties apply under the sales agreement.
A 2025 work programme will now begin. Activities include connecting Heron-1 to the national power grid, expected to lower operating costs by 15%.
The Heron-2 well will be acidised and re-tested using a workover rig in August. The rig will then test the Gazelle-1 and Gobi Bear-1 wells. Both have shown potential in previous drilling and logging.
Evaluation of Block VII has progressed with the recovery of historic seismic data. All environmental studies have been completed and an application for a formal exploration licence has been submitted.
Farm-out efforts are ongoing. A draft agreement has been sent to one interested counterparty. Talks with Chinese companies are also in progress.
“Our farm-out efforts continue and we believe are enhanced by the ongoing production operations and our pursuit of low-cost add-ons,” Buck added.
Renewable energy projects under the Sunsteppe joint venture are moving forward.
A 200MW hybrid project and a 1.5GW export-to-China project are being prepared for development. Investors have expressed interest, and value creation is expected when projects reach ready-to-build status.