In an interview with London South East's Donald Leggatt, Petro Matad CEO Mike Buck set out his ambitions for 2020. Having drilled exploration wells in the West in 2018 and discovered oil in the East of Mongolia close to already producing oil fields late in 2019, he and his team are now working on the commercialisation of the Heron field.
"We found a test flow rate of over 800 barrels a day at Heron-1, a very, very pleasant surprise. We assess that there's probably about 160 million barrels in place, and the question is how much of that is recoverable. Petro China, our neighbours across the boundary of the block achieve around 15%, which would give us 25 millon barrels recoverable, and we would like to think with modern technology we can do better than that," Mike Buck explained. With a General Election due to happen in Mongolia in the third quarter of 2020, the race is on to get Exploitation and other required licences in place before the drilling season begins in June. "The Government are very, very keen to see more oil exploration in the country and have been very supportive of our efforts. We are emphasising the importance of us having our licenses before everything stops for the election." Funding for 2020 and beyond is required, and with 160 million barrels of reserves and a minimum of 25M recoverable barrels of oil, Mike Buck feels he is in a strong position. He is keen to keep his funding options open, and is looking at a combination of partnerships, farm-ins and possibly even equity. His focus is to get the field producing revenues as quickly as is feasible in order to make the development of the operations self-funding. "This will require an initial $10-20M to kick-start operations, and with economies of scale we hope to bring the costs of drilling Heron-2, 3 and 4 down considerably" said Mr Buck.