Petro Matad Share News (MATD)

Shares in Petro Matad have fallen by nearly 10% after it said that it is suspending drilling at the Davsan Tolgoi-4 well in Mongolia. The drilling rig being used is at the limit of its tolerances because of low temperatures. Of drilling continued then it could have ended up creating problems The drilling has reached 1,271 metres out of a planned 2,020 meters. The reservoir has not been penetrated. An intermediate casing has been run and cemented. The rig will remain at the site and drilling should resume next April. Once drilling recommences there should not be much longer to wait for drilling results. For the time being, Petro Matad will analyse the data it has collected from previous drilling and acquire more seismic data. House broker Westhouse says that the Davsan Tolgoi West block has a mean unrisked resource of 21m barrels of oil and a probability of success of 38%.