Petro Matad Share News (MATD)

(Sharecast News) - Mongolia-focussed oil explorer Petro Matad updated the market on its operations on Thursday, reporting that it was pursuing a four-well drilling campaign in 2019 at Heron, Gazelle and Red Deer on block XX, and either a further exploration well at block V or an appraisal of a block XX discovery.The AIM-traded firm said that at Heron, the Heron 1 well was planned as the first well of the 2019 campaign, with spudding targeted for the second quarter.It confirmed a more-than-50% resource uplift at the Heron prospect to 25 MMbo, from 16 MMbo, following the mapping of reprocessed 2D seismic data.The analysis reportedly indicated the Heron prospect was the southerly extension of a proven oil-bearing structure drilled in Petro China's adjacent block XIX.Petro Matad said Gazelle had been high-graded to be the second block XX well, as new mapping showed it to be directly up dip of a Petro China discovery well on the same migration path.The Red Deer prospect location remained unchanged, targeting 48 MMbo of mean prospective recoverable resource, the board explained.Heron, Gazelle and Red Deer environmental permits for drilling had been approved, with corporate social responsibility teams now mobilised to well sites.Regulatory approval had been received for a two-rig strategy for limited additional cost to allow for simultaneous drilling of prospects, with the company saying negotiations with rig contractors was nearing finalisation.Applications for blocks IV and V production-sharing contracts were being prepared for two-year extensions, with submission expected shortly.Ongoing analysis was taking place on the Snow Leopard 1 well at block V, which Petro Matad said had "significantly enhanced" the prospectivity of the block, and in particular the Raptor trend."The company has made good progress since the last operational update," said Petro Matad chief executive officer Mike Buck."I'm particularly pleased with the results of the northern Block XX seismic reprocessing which has significantly improved the mapping and structural definition of the Heron and Gazelle prospects, and has increased our resource estimate for Heron."As the first well in the programme, Heron 1, is an appraisal of a discovery made in Block XIX, the probability of encountering hydrocarbons is good."Buck said the two-rig strategy further enhanced the ability to appraise any discoveries made in the block XX 2019 programme, with the Raptor trend in block V also showing encouraging signs of prospectivity."We are well placed to commence drilling in the second quarter and look forward to providing further updates."