MATD – Drilling Operations and PSC Extension update

Petro Matad Limited (AIM: MATD), the AIM-quoted Mongolian oil explorer, is pleased to provide an update on preparations for the 2019 drilling campaign in Block XX and PSC extension applications for Blocks IV and V.

Block XX

Well site construction has commenced on the Heron 1 location and is expected to be completed within 10 days. The site construction contractor will then move to the Gazelle 1 location and from there to Red Deer 1. All three sites are expected to be complete by the end of June. The work is being carried out by the same construction contractor that successfully prepared the sites for the Company’s 2018 drilling campaign.

A contractor has been chosen to drill two water supply wells, one for operations at Heron and Gazelle and one for Red Deer. The contractor will mobilise to Heron in early June.

Permitting, procurement activities and rig preparations are progressing well, ahead of the exploration drilling campaign. The DQE rig has completed its pre-move testing and certification and the required electrical upgrade is expected to be completed in the first week of June.

The Company continues to target an early July spud date for the Heron well with the Red Deer well expected to spud in the second half of July. Drilling of the Gazelle well will immediately follow Heron, after a short rig move.

Blocks IV and V

The applications for entry into the final two-year term (to July 2021) of the Exploration Phases of Blocks IV and V, submitted in mid-April 2019, are under review by the regulator (MRPAM), with final clarification meetings expected shortly. 

A further update will be provided in due course.

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