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LONDON (Alliance News) - Mongolian oil firm Petro Matad Ltd on Tuesday said it has postponed the spud date for the first well of its upcoming drilling programme.
Petro Matad will spud Heron 1 in early July, having been moved back to allow for "certain electrical and safety modifications" to the rig.
Petro Matad will drill the well to 3,050 metres, taking 40 days, and then it will drill at Gazelle 1 to 2,500 metres taking 35 days.
Following that is Red Deer 1, to spud in July, taking 35 days to 2,100 metres, and then Petro Matad will choose between further Red Deer drilling or moving the rig to either Block V or the north of Block XX.
The Heron, Gazelle, and Red Deer prospects are all located on Block XX in eastern Mongolia.
Petro Matad has signed two rig contracts for the worth, one with Mongolia's DQE International, and one with Daton Petroleum Engineering & Oilfield Service LLC.
Chief Executive Mike Buck commented: "We are pleased to announce the signing of the two rig contracts which marks a major milestone for the four well drilling programme scheduled for 2019. 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."
Shares were 7.1% lower on Tuesday at a price of 4.88 pence each.
