Petro Matad Limited (AIM:MATD, OTC:PRTDF, FRA:HA3) told investors that the approval of its 2026 Oil Sales Agreement with PetroChina is expected shortly, potentially unlocking sales of around 35,000 barrels of Block XX crude accumulated so far this year.
The AIM-quoted Mongolia-focused oil company said outstanding issues around the 2025 agreement had been resolved and payments made, while the wording of the 2026 contract had been aligned with Mongolian petroleum and tax legislation.
Production from Block XX continues to run broadly as planned. Heron-1 averaged 126 barrels of oil per day through the first quarter, with water cut low and stable at around 3%, while Gazelle-1 averaged 123 barrels per day after optimisation, ahead of Petro Matad’s initial expectations following water breakthrough.
The company said total Block XX production since start-up now exceeds 110,000 barrels. It is also reviewing a proposal for a high-resolution 3D seismic survey over the Block XX exploitation area, with a crew available to begin in late June or early July.
Farm-out discussions are continuing, with Petro Matad saying higher oil prices have lifted interest from potential partners in Block XX and Block VII.