Petro Matad Share News (MATD)

Oil explorer Petrod Matad has terminated production at its Davsan Tolgoi-10 well after failing to encounter moveable hydocarbons. The project, situated between the group's Shoroo and Gal prospects, targeted two objectives, but no shows were observed in either, while analysis of the area indicates only thin scattered zones of probable residual oil. The drilling rig will be transferred to another site some 225m south of the DT-10 well, where the D-11 replacement well will be drilled. Drilling on the next well is expected to begin mid September. Chief executive officer Douglas McGay said: "The absence of hydrocarbons is disappointing, but once again we have seen evidence of a hydrocarbon charge that has been breached and flushed. The picture that is developing at Davsan Tolgoi is one of complicated stratigraphy and a complex structural history. Exploration here will require a significant amount of drilling. "The positive note is that we continue to demonstrate that hydrocarbons have migrated into the structures that we are imaging on the seismic. In fact, out of ten wells drilled to date only one has been completely dry."The share price fell 12.92% to 45.50p at 12:53.NR