LONDON (Alliance News) - Petro Matad Ltd on Thursday said seismic reprocessing at Block XX has raised its Heron prospect resource by more than 50% and indicates that Heron is the extension of a structure in an adjacent block.
The Mongolia-focused oil exploration company said the resource at the Heron prospect has now been raised to 25 million barrels of oil from 16 million as a result mapping reprocessed 2D seismic data.
Analysis has indicated that Heron is actually the southerly extension of an oil-bearing structure drilled in the adjacent Block XIX - drilled by Petro China.
"I'm particularly pleased with the results of the northern Block XX seismic reprocessing which has significantly improved the mapping and structural definition of the Heron and Gazelle prospects and has increased our resource estimate for Heron. As the first well in the programme, Heron 1, is an appraisal of a discovery made in Block XIX, the probability of encountering hydrocarbons is good," said Petro Matad Chief Executive Mike Buck.
Petro Matad also received approval from a regulatory for its two-rig strategy at Block XX and the company is now finalising contracts for a shallow rig. The use of two rigs is not expected to significantly increase costs and will allow simultaneous drilling.
The company hopes to complete its Block XX drilling programme early enough in the 2019 drill season that it can proceed straight to appraisal drilling if its tests are successful.
"The two-rig strategy further enhances the ability to appraise any discoveries made in the Block XX 2019 programme," Buck said.
Shares in Petro Matad were up 1.4% at 5.88 pence on Thursday.
Petro Matad (MATD)