LONDON (Alliance News) - Petro Matad Ltd said Monday it is close to securing permits for the Wild Horse 1 well, while the Snow Leopard 1 well spudding experienced delays.
The Wild Horse 1 and Snow Leopard 1 wells are located in Mongolia.
Permitting for the Snow Leopard 1 well has been completed but due to delays in securing working visas for the Sinoped drilling team, spudding of the well is now set to commence in July 2018, the company said. Sinopec will move logging and cementing units from China.
"The Petro Matad team is very pleased to have started mobilisation to drill the first well, Snow Leopard 1, in our western acreage," Petro Matad Chief Executive Mike Buck said.
The company said the delays will not affect drilling of both Snow Leopard 1 and Wild Horse 1 in 2018.
The oil explorer said that environmental permitting for the Wild Horse 1 well is almost complete, with the environmental impact assessment approved and chemical permits progressing.
The company has also identified a new possible prospect in the Tugrug Basin.
"The Tugrug Basin has excellent evidence of a working petroleum system with thick, rich source rocks outcropping on the basin margins and live oil shows in the basin edge TSC1 core hole," Petro Matad said.
Shares in Petro Matad were trading 1.6% higher at 12.85 pence.
Petro Matad (MATD)