(Alliance News) - Petro Matad Ltd on Tuesday reported a narrowed interim loss as the company's exploration expenses declined.
Shares in the AIM-listed Mongolian oil explorer were 13% higher in London in midday trading at 7.50 pence each.
In the six months to June 30, Petro Matad's pretax loss narrowed to USD4.4 million compared to USD6.7 million a year before.
Petro Matad's exploration expenditure and other expenses declined 30% year-on-year to USD3.2 million from USD4.6 million.
The company's revenue increased to USD508,000 from USD180,000 a year before.
Petro Matad ended the half with USD16.1 million in cash balances, with USD3.8 million in cash and USD12.3 million in financial assets.
Following two placings in 2018, the company said its cash resources are "sufficient" to fully meet the costs of its planned 2019 drilling programme.
Petro Matad holds a 100% working interest and the operatorship of three production sharing contracts with the government of Mongolia - Block XX, in the far east of Mongolia, and Blocks IV and V in the central western part of the country.
Petro Matad said it expects to report the results from the drilling of the Heron 1 exploration well in the Tamsag Basin from Block XX next week. The firm will then move onto the Gazelle 1 exploration well.
The results from the drilling and logging of the Red Deer 1 exploration, in the Asgat Sag Basin of Block XX, are expected in mid-September.
Petro Matad (MATD)