Member Info for abzzba

Basics, Horizontal vs vertical drilling.

https://www.youtube.com/watch?v=MM75WK5SfBw

H2, Gazelle & Gobi Work Programme page 11.

https://www.petromatadgroup.com/wp-content/uploads/2025/07/Corporate-Presentation-30_07_25-Petro-Matad.pdf

RNS next week telling us rig deployed to H2, results of acidizing and well test by end August before moving the rig to Gazelle ?

NEGs keep posting crap, just trying to educate them, obviously quite a difficult task given their learning difficulties, doc, you appear to know the majority of the NEGs, maybe you could ask them to stop repeating themselves over and over..

People really need to understand the timing and reasons these wells were not progressed at the time, these reasons have been addressed many times on here yet posters still ask why, posters should also understand that just because a well is suspended it does not mean it is dead in the water DUSTER, it most certainly is not.

Oil well suspended meaning as follows:::: An oil well is considered "suspended" when its production or injection operations are temporarily halted with the intention of potentially resuming operations at a later date. Essentially, it's a well that's been safely secured but not permanently abandoned, with the possibility of future production, the fact we went to the expense of casing each of these proves we always intended returning to these wells.

H2 was suspended. Costs to acidize, test and complete circa $1.4 million.

Gazelle was suspended. Cost to well test and complete circa $900k.

Gobi Bear 1 was suspended. Cost to well test and complete circa $900k.

Above assumes we get reasonable well test from each well.

What we really need is a partner with deep pockets that can afford to pay for horizontal drilling, ideal for Heron, rather than a dozen small vertical wells 2 or 3 horizontal wells, same with Gobi.

Gobi, 307 million barrels.

https://www.lse.co.uk/rns/MATD/spud-of-gobi-bear-1-exploration-well-38v36hk2hl4qu5n.html

Wigster, NO, H2 has been cased to bottom and the casing cemented in place, that makes radial drilling/ fishbone completion nigh impossible, it was said that if H2 acidization does not work we can always revert back to using it as an injection well to push water into the reservoir and enhance H1 production figures.

However acidizing is ideal for disolving calcite deposits so no reason it will not work, also we well tested 30 bopd and only need to up that to 50-60 bopd for it to be comercial, but i think MB hoping for quite a bit more, acidizing can improve production by a factor of 10, probably to much to hope for but factor of 5 would be great, excellent article on acidizing below.

https://www.api.org/-/media/files/oil-and-natural-gas/hydraulic-fracturing/acidizing-oil-natural-gas-briefing-paper-v2.pdf

(Again MP3 to text transcript)

So why at Heron 2 the reservoir didn't flow as well as it did at Heron 1 clearly is a bit of a puzzle.

H2 work on cuttings: basically x-ray diffraction work, has illuminated a little difference between the wells in that at Heron 2, we see a little bit more carbonate cement in the form of calcite and dolomite, and maybe a little bit more silica as well. So there's an indication that the reservoir mineral content is slightly different. And given it's carbonate that we're looking at, then obviously one way to try and

to diminish or mitigate the presence of that cement is to do what we call an acid wash, which is basically to circulate a strong acid around perforations in the wellbore to try and obviously get into the wellbore a little bit and diminish that cementation, but also to try and clear out any debris that might be around the perforations themselves. And that could be, for example, a bit of the frac gel that we used when we stimulated the well.

So, that's the first thing we're going to do. We're going to do the acid wash and see if we can clean up the perforations and then do another flow test to see if indeed that has been successful and if we can establish a commercial rate at Heron 2, which would only need to be in the region of 50 barrels a day, given the fact we can obviously synergise with our

production facilities at Heron 1 and all the rest of it.

(50 bopd ample for commercial purpose but MB certainly hoping and i suspect expecting better)

Do find it strange, post yesterday RNS & presentation genuine investors seem excited, impressed with MBs new confidence and enthusiasim, certainly more buying and less selling, certainly positive, yet we still have a very "few" old guard NEGs stating doubts, lots of negative IMV, IMHO, DYOR, but nowt really damming to say apart from innuendo, much the same as usual for them.

RNS: Farm out

As previously reported, the Company has stepped up its efforts to find partners to join it in Block XX development and Block VII exploration. On Block XX one counterparty has reported that it is in the final stages of its evaluation and asked for a draft farmout agreement which has been provided. Petro Matad has focused its most recent efforts on potential Chinese partners including companies active in the producing basins in northern China that extend into Block VII. The Company's goal is to have partners fund a work programme in return for a working interest and in the case of Block XX is looking for an injection of capital to fund enough wells to allow production to reach a level that will sustain the ongoing development of the reserves.

From the presentation (again MP3 to text).

We want an injection of capital from somebody else, not our shareholders, not off our own balance sheet, not from production revenue, which is relatively slow to build up at these well rates. We want to bring in a pharmacy who's going to invest their money on wells that will get us to a state where the production from the field is enough to fund the ongoing development of the reserves. And we are in that process at the moment.

We have one counterparty that is very, very well advanced in their evaluation and they do seem very keen. So we are pretty hopeful that that is going to generate at least one proposal. We've got two other parties we're talking to. Perhaps they're not quite as far forward as the first, but we are very, very confident that this is going to generate, this is generating interest and that it's going to generate some offers that we will then be able to evaluate.

What we're looking for is a decent amount of capital to be injected to actually do the work that I just described and get us to a position where we can increase from our current level of production up to a level of production that allows us to go forward with an accelerated development, therefore a creation of value. So on the Heron Field itself, the picture shows what is currently set up at the Heron No. 1 well.

MBs words. (MP3 to text so ?)

H2, it wasn't far short of the 30, 35 barrels a day it needs to wash its face. We're obviously hoping for 50 barrels a day as a relatively conservative assessment, and I'd like it to do more than that. I think with the acid wash, we stand a good chance. So I'd put that at, I personally haven't discussed this with anybody, but I'd put that at 70, 75%.

On Gazelle, those sands look really good. They're on logs anyway. They're a bit thinner than I'd like them to be, but we have potential for about 40 meters of vertical standoff from where we can identify water in the well itself. So if those sands extend laterally down the slope, then they should produce for a long time. So I think there's a very high chance that we'll get oil out of Gazelle 1 and I'm very hopeful that that production will continue and won't water out. So yeah, I put that at a better than 50% chance of success.

Gobi, My heart tells me we have to test that well. The indications we got from the work we have done since we drilled and then suspended the well are positive. The log motif can't be made to go away, so damn it, we're going to test it, I don't want to curse it by putting a chance of success on it, but I'm very enthusiastic for doing that.

Trade from yesterday.

30-Jul-25 12:10:00 0.799 1,237,500 Unknown* 0.75 0.80 9,888

TBT, 50 bopd is “commercial” it’s a pretty low bar which both H2 & Gazelle will clear very easily,

Certainly one of the Chinese entrants.

https://www.facebook.com/montsame.en/posts/minister-of-industry-and-mineral-resources-of-mongolia-tuvaan-tsevegdorj-held-a-/1227649419366366/

Almost certainly the Indian entity which MB mentioned.

https://ongcvidesh.com/

ManxK, my 30p withing 36 months maybe not so daft.

Would have thought the answer to that was quite simple, MB like everyone else expected PC to pay us in a reasonable timescale and expected to be paid in full, not be paid 70%.

The fact they have not paid any other invoice since then forced the raise.

MlbeckM hits the nail on the head, we really should have started the reworks back in April, why did we not, quite simple answer, Petro China held back payment for our oil, we were starved of working capital.

Our Petro CHina sales agreement was signed in January, PC took until end of June to pay us and even then they held back 30%, since then no further payment has been received for our oil so its easy to see the game they are playing, trying to starve us of cash, also explains the need for the latest raise, thanks MlbeckM for highlighting this.

Thornogson, you forgot 60 million barrels oil in Heron plus 307 million in Gobi,