(Alliance News) - Petro Matad Ltd on Monday said its pretax loss has narrowed in the first half of 2020 and is waiting on legislation for its Heron 1 oil discovery in eastern Mongolia.
The Mongolian oil company saw its pretax loss in the first half ended June 30 narrow to USD2.4 million from USD4.4 million a year prior.
Revenue in the half was down to USD35,000 from USD510,000 year on year.
Petro Matad is awaiting the approval for the Block XX exploitation licence which is holding up the company's progress on its Heron 1 oil discovery.
Both the Covid-19 pandemic and the recent Mongolian parliamentary election have caused delays in the approval of the license.
The company is also working with the industry regulator Mineral Resources and Petroleum Authority of Mongolia to avoid issues of land accessed which caused some delay to operations in 2019.
Petro Matad's cash balance at June 30 was USD2.1 million, down from USD16.1 million a year prior.
Petro Matad said: "The company has strategically put in place cost-saving measures without sacrificing its operational capability, which in the absence of new sources of financing, will enable it to remain in an operationally ready state until mid-2021. Meanwhile, the company is pursuing a number of options to fund the next stage of its activities."
The company did not mention an interim dividend.
Petro Matad shares were down 12% at 2.51 pence each on Monday midday in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Petro Matad (MATD)