Shares in Mongolia oil explorer Petro Matad (LON:MATD) moved higher on Monday after it received a US$2.75mln cash injection from new partner BG Group (LON:BG.)
Petro Matad earlier this month secured government approval for its farm-out of 78% of exploration blocks IV and V. That interest in the projects has now been formally transferred to BG.
A further US$1.8mln of cash payments will be made to PetroMatad, across thirty monthly instalments of US$50,000.
"I am very pleased to announce that the farmout has attained unconditional status which means we will be able to proceed as planned with the proposed work programme,” said Dr Oyungerel Janchiv, Petro Matad’s acting chairperson.
“The previously announced approval by the Mongolian Government is also very much appreciated and is another demonstration of the commitment to develop the country's oil and gas resources.”
Petro Matad also updated on the anticipated timeline for exploration, which now foresees both BG committed wells scheduled for 2016.
It was previously anticipated that one well could have been drilled in 2015.
As previously announced, in April, the agreed work programme will still see airborne survey work and 2D seismic exploration during 2015.