(Alliance News) - Petro Matad Ltd on Thursday said the restructuring of a regulation body in Mongolia is causing delays to its exploitation licence award.
In addition, the oil exploration company said Chief Financial Officer John Henriksen, who has been in the role since 2012, will retire. Henriksen's retirement will be effective as of December 31 until which time he will continue to serve in his current capacity.
Petro Matad said Tamir Battogtokh, who has been the company's chief accountant since 2010, will take on the responsibility to manage the finance function from 2021.
Turning back to operations, Petro Matad said the block XX exploitation licence application remains with the Ministry of Mining & Heavy Industry, awaiting the convening of the meeting of the Mineral Resource Professional Council to review and approve the Heron reserves report. This meeting has been delayed due to a reorganisation within the ministry, which followed Mongolia's parliamentary elections in the second quarter.
The company said once the reserves report has been approved, the exploitation licence award process requires the development area to be agreed with industry regulator Mineral Resources & Petroleum Authority of Mongolia and the plan of development must be reviewed and approved by regulators. The plan of development is ready for submission to the relevant bodies, Petro Matad highlighted, as soon as the reserves report approval is in hand.
In the meantime, the company said it has had its detailed environmental impact assessment for the Heron development approved by the Ministry of Environment.
Petro Matad shares closed 19% lower in London on Thursday at 2.34 pence each.
By Evelina Grecenko; email@example.com
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