The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksPetro Matad Regulatory News (MATD)

Share Price Information for Petro Matad (MATD)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 3.15
Bid: 3.10
Ask: 3.20
Change: 0.05 (1.61%)
Spread: 0.10 (3.226%)
Open: 3.10
High: 3.19
Low: 3.15
Prev. Close: 3.10
MATD Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Award of Block XX Exploitation Licence

7 Jul 2021 07:00

RNS Number : 3693E
Petro Matad Limited
07 July 2021
 

 

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY PETRO MATAD LIMITED TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014 AS IT FORMS PART OF UNITED KINGDOM DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("UK MAR"). ON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE ("RIS"), THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

7 July 2021

Petro Matad Limited

("Petro Matad" or the "Company")

Award of Block XX Exploitation Licence

 

Petro Matad Limited ("Petro Matad" or "the Company"), the AIM quoted Mongolian oil company provides the following update on its activities in Block XX, eastern Mongolia.

 

Key Highlights

· Mongolia's Minister of Mining and Heavy Industry has approved the award of the Block XX Exploitation Licence

· The approved Plan of Development will concentrate initially on the proven reserves area around Heron 1, expanding in phases to target the estimated 194 million barrels (MMbo) of total in place resource potential

· The agreed Exploitation Area totals 218km2 which includes the entire extension into Block XX of the proven and producing Toson Uul Basin

· The Company will now resume discussions with potential farm-in partners and review funding options to complete the next stage of activity

· The Company is now focused on preparing for a very active programme in 2022 including the start-up of oil production from the Heron discovery using spare capacity in adjacent infrastructure

 

Block XX Exploitation Licence

Mongolia's Minister of Mining and Heavy Industry has approved the award of the Block XX Exploitation Licence to Petro Matad. Under the Mongolian Petroleum Law and the Block XX Production Sharing Contract, the Exploitation Licence runs for 25 years (until 1 July 2046) with the option to extend for two periods of five years each.

 

Plan of Development

The approved Plan of Development, in line with the Mongolia Petroleum Law and normal industry practice, will concentrate initially on the proven reserves area around the Heron 1 well and the Company plans to stimulate and complete Heron 1 along with all subsequent successful appraisal and development wells enabling their early production utilising spare ullage in the nearby PetroChina operated processing and export facilities. The central processing facilities in Block XIX are located some 17km North of Heron 1 and during 2020 PetroChina and Petro Matad signed a Memorandum of Understanding under which Petro Matad can have access to these facilities. Now that the Block XX Exploitation Licence has been awarded, the commercial details for the sharing of PetroChina's facilities will be negotiated.

 

The full field development plan has been designed to target the estimated 194MMbo in place total resource potential in the Heron structure as independently certified in LEAP Energy's Competent Persons' Report. Based on the oil recovery factor achieved by PetroChina in Block XIX immediately to the north, the recoverable oil potential of Heron could be in the order of 33MMbo. Petro Matad plans to deploy reservoir stimulation technology widely used in the industry but not yet tried in Mongolia, to seek to improve on this recovery factor and sees a target of 30% or more (equating to recoverable resource potential of c. 60MMbo) as realistically achievable based on studies conducted to date by expert consultants on behalf of the Company.

 

Exploitation Area

As part of the Exploitation Licence application process, the area to be retained by Petro Matad was agreed with industry regulator, the Mineral Resources and Petroleum Authority of Mongolia (MRPAM). The agreed Exploitation Area totals 218km2 and is shown on the map below:

 

http://www.rns-pdf.londonstockexchange.com/rns/3693E_1-2021-7-6.pdf

The retained Exploitation Area includes the entire extension into Block XX of the proven and producing Toson Uul Basin. This basin contains an estimated 2 billion barrels of in place oil in the PetroChina operated areas in Block XXI and XIX immediately to the north of Block XX. Under the Exploitation Licence, the Company can continue to explore in order to increase the proven reserves within the area and has identified on existing seismic data, prospects and leads within the Exploitation Area with recoverable resource potential in the range of 100MMbo to 200MMbo in addition to the potential seen in the Heron structure. The prospectivity defined to date offers significant resource and value potential in near field appraisal and exploration targets which the Company considers have good chance of success given that the basin and the play fairway are proven and where drilling costs are low.

Forward plans

Now that the Exploitation Licence has been awarded, the Company will resume discussions with potential farm-in partners to determine if the appropriate partnership can be formed to complete the next stage of activity. In parallel, the Company will review its funding options and decide which option will best facilitate achieving the primary goal of generating revenue from early production from Heron as soon as possible. There are some legal formalities required to register the Exploitation Area, to present annual land usage plans to the local authorities and to secure budget approval from MRPAM. These will be pursued over the coming months.

Given the restrictions currently in place in Mongolia to reduce the impacts of the Covid-19 pandemic, including international border restrictions which have delayed the importation of oil drilling equipment and crews, there is insufficient time before the onset of winter for any well completion or drilling activity to take place in Block XX in 2021. However, Mongolia has a highly efficient vaccination programme underway with the expectation that the overall situation and the oil field operating environment will continue to improve. The Company is now focused on preparing for a very active programme in 2022.

 

Mike Buck, CEO of Petro Matad, said:

"Securing the Block XX Exploitation Licence has been a lengthy process but Petro Matad very much appreciates the patient and professional way in which the government has dealt with the matter. We are delighted and honoured to have been awarded what is only the third such licence ever granted in Mongolia. The pandemic has been difficult for Petro Matad as it has for everybody and although the Company still has some important preparations to complete, we are looking forward to an extremely active 2022 with the primary goal of generating revenue from early production at Heron as soon as possible.

 

I would like to thank the staff of Petro Matad for their efforts in securing the Exploitation Licence, a significant milestone for the Company."

 

For more information, please contact:

 

Petro Matad Limited

 

Mike Buck, CEO

+976 7014 1099 / +976 7575 1099

 

 

Shore Capital (Nominated Adviser and Broker)

Toby Gibbs

Jerry Keen

John More

+44 (0) 20 7408 4090

 

FTI Consulting (Communications Advisory Firm)

 

Sara Powell

Ben Brewerton

+44 (0) 20 3727 1000

 

All Reserves and Resources definitions and estimates shown in this report are based on the 2018 SPE/AAPG/WPC/SPEE Petroleum Resource Management System ("PRMS").

 

Technical information in this news release has been reviewed by the Company's Exploration Manager, Mr. Jerry Smart. He has 38 years of industry experience in oil and gas exploration and production with LASMO, Eni, Salamander Energy and Ophir Energy. He holds a B.Sc. in Geology from King's College, London. 

 

 

About Petro Matad

Petro Matad is the parent company of a group focussed on oil exploration, as well as future development and production in Mongolia. At the current time, Petro Matad holds 100% working interest and the operatorship of two Production Sharing Contracts with the Government of Mongolia. Block XX has an area of 218 square kilometres in the far eastern part of the country and Block V has an area of 7,937 square kilometres in the central western part of the country.

 

Petro Matad Limited is incorporated in the Isle of Man under company number 1483V. Its registered office is at Victory House, Prospect Hill, Douglas, Isle of Man, IM1 1EQ.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
MSCSSLFWMEFSEFW
Date   Source Headline
22nd Nov 20177:00 amRNSFurther re Directorate
21st Nov 20177:00 amRNSSinopec Drilling Rig Contract Amendment
14th Nov 20177:00 amRNSGAP Investment Forum and New Investor Presentation
25th Oct 20177:00 amRNSAppointment of CEO
24th Oct 20177:20 amRNSOperational update - 3D seismic campaign
4th Oct 20177:00 amRNSSeismic Acquisition Campaign
19th Sep 20177:52 amRNSOperational Update and Board Change
11th Sep 20175:00 pmRNSHolding(s) in Company
11th Sep 20177:00 amRNSDirectorate Change
1st Sep 20172:29 pmRNSIssue of Equity
1st Sep 20178:52 amRNSHalf-year Report
22nd Aug 20179:01 amRNSHolding(s) in Company
15th Aug 20177:00 amRNSUpdate re. Financing Agreement
14th Aug 20177:00 amRNSHolding(s) in Company
25th Jul 20174:50 pmRNSTransactions by Director
20th Jul 20174:43 pmRNSHolding(s) in Company
18th Jul 20179:49 amRNSIssue of Equity
10th Jul 20177:00 amRNSCorporate Presentation
5th Jul 20177:00 amRNSDrilling Rig Contract and Drilling Targets
29th Jun 20178:05 amRNSFinal Results
21st Jun 20178:15 amRNSHolding(s) in Company
15th Jun 20177:08 amRNSBlock IV and V PSC Extensions
13th Jun 201711:36 amRNSIssue of Equity
31st May 20179:19 amRNSDrilling Contract Award
8th May 20177:00 amRNSFinancing Agreement with Bergen
21st Apr 20178:58 amRNSPSC extension, updates on rig contract and farmout
4th Apr 20171:09 pmRNSDrilling rig and services tender update
24th Mar 201711:13 amRNSDirector/PDMR Shareholding and Total Voting Rights
10th Mar 20178:17 amRNSDirectorate change, tender & farmout update
1st Feb 20178:29 amRNSCompletion of Reassignment
27th Jan 20178:20 amRNSRelease of Rig Tender and Company Update
18th Jan 20178:19 amRNSSigning of Protocols of Reassignment
12th Jan 20172:04 pmRNSStmnt re Share Price Movement
10th Jan 20177:00 amRNSUpdate re payment from Shell
15th Dec 20168:52 amRNSGovernment Approval of Reassignment of Interest
9th Dec 201611:55 amRNSShare Price Movement and Result of AGM
16th Nov 20168:07 amRNSPETEX conference and Update
10th Nov 20163:03 pmRNSNotice of AGM
3rd Nov 20167:00 amRNSOperational Update
26th Aug 20167:00 amRNSInterim results
11th Aug 201612:43 pmRNSFinancial Update
5th Aug 20169:30 amRNSFinancial Update
30th Jun 20163:56 pmRNSFinal results for year ended 31 December 2015
30th Jun 20163:55 pmRNSFinancial and Operational Update
26th May 20168:52 amRNSHolding(s) in Company
19th May 20169:12 amRNSHolding(s) in Company
29th Apr 201612:17 pmRNSPartner Exit from Blocks IV and V in Mongolia
5th Feb 20169:57 amRNSResult of AGM
3rd Feb 20168:57 amRNSOperational Update
28th Jan 20167:00 amRNSNotice of Annual General Meeting

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.