(Alliance News) - Petro Matad Ltd on Wednesday said it has secured a verbal approval from the central and provincial governments of Mongolia to resume operations on Heron-1 well, whilst the necessary paperwork is completed.
Petro Matad shares were trading 32% higher in London on Wednesday at 7.00 pence each.
The AIM-listed oil explorer said the rig at Heron-1 had been put on standby on Monday last week, pending the resolution of a dispute on land use.
Preparations are now being made to drill the eight-and-a-half inch hole section on the well and, simultaneously, the company is working with the local Governor to sign a land use agreement, Petro Matad said.
The signed agreement is expected to be executed within the next few days, Petro Matad noted. Total standby costs incurred to-date are USD150,000.
Looking ahead, the company said it hopes to be able to make up some of the time lost on standby and, based on current forecasts, drilling operations on Heron-1 and Gazelle-1 can be completed well within the "normal" operating period of the Mongolian drilling season.
Petro Matad (MATD)