Petro Matad Limited (LON:MATD) shares shot up 75% in Thursday morning’s deals after revealing that one of two zones in the Heron-1 discovery well flowed crude at a peak rate of 821 barrels per day in testing.
The explorer, in a statement, revealed that the DST2 zone flowed light 46 degree API crude naturally without the need for artificial lift or stimulation. This is described as an exceptional result in Mongolia’s Tamsag basin.
READ: Petro Matad completes Gazelle well programme
At the same time, the DST1 zone did not flow naturally. Petro Matad noted that the well did proved an oil column of at least 70 metres.
"The test results at Heron-1 are even better than we expected given that the well is deep in the basin centre,” said Mike Buck, Petro Matad chief executive.
“The data gathered will now be analysed and used to secure tenure of a development area in Block XX with a view to transitioning Petro Matad from explorer to producer with revenue generation.”