Petro Matad Limited (LON:MATD) has confirmed that the Mongolian authorities have formally approved the proposed extension of the company’s exploration projects.
In a stock market statement, it told investors that the exploration period for blocks IV and V production sharing contracts have been extended for two years until July 2019.
It means the company has more time to meet its work obligations and retain its interests in the assets.
Specifically, Petro Matad said the extensions allow it to execute its planned work programme for 2017 which includes drilling two wells and conducting a 3D seismic exploration work. The company noted that it expected its financial commitments for the extended period will amount to US$7mln.
The explorer added that further details of its work plans will be disclosed in future announcements.