RE: RE: SP/TURNOVER21 Oct 2025 16:13
Block XX potential recoverable oil with in-situ value of $6billion (based on $40/barrel)
Block VII potentially much larger. No obligation to spend £14.9m as they can give up the licence after 2 years if they dont like what they find.
See operational update end of January 2025;
Block VII comprises a very large area of some 41,141 square kilometres and is located in the south of Mongolia adjacent to the Yin'e and other basins across the border in northern China where oil and gas have been found in several plays. Importantly, in addition to the Jurassic/Cretaceous play already well known in Mongolia, oil has been found in older Triassic and Permian reservoirs that so far have not been explored in Mongolia. It is the extension of these oil prone basins into Block VII that make this block technically very attractive. Block VII has previously been lightly explored by other operators and has some 2D seismic coverage and limited well data. Geological outcrop information is plentiful.
Contractual and fiscal terms are very attractive compared to most other international jurisdictions. The financial commitment on Block VII is very low as Petro Matad has been able to incorporate into the eight-year exploration term a phasing of the work programme and the spend with the option to continue or relinquish in part or in full at the end of each phase. This keeps the commitment spend low until prospectivity is determined and further expenditure is then supported. In the first two-year phase on Block VII, the agreed work programme comprises field mapping and related studies designed to mature areas for future seismic acquisition and/or drilling at the Company's discretion in the following phases of the exploration term. The commitment spend for the first two-year phase including all PSC fees is $980,000 and overall expenditure under the contract for the full eight-year exploration period is $14.9 million.
Sign In
Follow the stocks
