Petro Matad Limited (LON:MATD) told investors it has signed up two drill rigs for its upcoming drilling campaign in Mongolia.
It plans to drill four wells in the fully-funded programme, which aims to complete before the end of 2019.
The company noted that both newly contracted rigs are in close proximity to the exploration area, and, it expects to spud the first two wells – Heron-1 and Red Deer-1 – in July, with the Gazelle-1 well slated to follow Heron-1.
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Petro Matad is presently leaving the fourth rig slot free, giving it the option to drill either a follow-up exploration well or advance any successes with an appraisal well.
Chief executive Mike Buck described it as “a major milestone” and highlighted: “The contracts secured allow for simultaneous drilling of prospects and immediate appraisal in the event of a discovery which could be transformational for the company.
“It is an exciting year ahead for Petro Matad and we look forward to working with our contractors to deliver value for our shareholders."
The Heron well will test a 25mln barrel target, while Red Deer is aimed at a 48mln barrel prospect and Gazelle is seen to have the potential for 13mln barrels.