Last checked at 18 Jul 2008 10:00
PETRO MATAD LIMITED
RESULTS OF 2D SEISMIC ACQUISITION AND INTERPRETATION ON STRONG LEAD 6Ts AREA
Petro Matad Limited ("PML" or "the Company") appointed Isis Petroleum Consultants Pty Ltd ("ISIS") to prepare a Seismic Interpretation Report (the "Seismic Report") in 2008 on Strong Lead 6Ts and the immediate surrounding areas, located within Block XX, the petroleum block for which PML has a Production Sharing Contract with the Government of Mongolia. Block XX is located in the Tamtsag Basin, in the eastern part of Mongolia.
The objective of the Seismic Report was to interpret the parts of the 155km of new 2D seismic data acquired in 2008 (the "2008 2D Seismic Survey") and the reprocessing of 686km of existing pre-2000 seismic data ("2008 Reprocessing") that are present within the general area of 6Ts. Strong Lead 6Ts and the immediately adjacent areas were then reinterpreted and remapped utilising the original seismic 2D data and the appropriate parts of the two new sources of seismic data.
ISIS has concluded that Strong Lead 6Ts did not mature to prospect status because the previously interpreted continuous faults necessary for the trapping mechanism broke up into smaller discontinuous segments.
Strong Lead 6Ts has now been mapped as a small fault bounded closure, re-designated Prospect 6Ts, with a Mean Risked Prospective Resource of 0.27 MMbbl. Prior to the interpretation of the 2008 2D Seismic Survey and 2008 Reprocessing, Strong Lead 6Ts was included in PML's inventory with a Mean Risked Prospective Resource of 11 MMbbl.
ISIS has reported that the structural nose to the southwest of Strong Lead 6Ts became more prominent and that a new exploration opportunity, Lead 15Ts, has been mapped. Lead 15Ts is a simple basement related anticlinal closure that requires additional seismic data to mature it to Prospect status. ISIS has reported that Lead 15Ts has a Mean Risked Prospective Resource of 1.8 MMbbl.
Following the completion of the interpretation of the 2008 2D seismic survey, the Mean Risked Prospective Resource of PML's total inventory has been reduced from 85 MMbbl to 76 MMbbl.
CEO Douglas McGay commented: "The interpretation of the 2008 2D seismic data in the ISIS study has confirmed that the greater 6Ts area is prospective for oil exploration. The remainder of the 2008 2D programme is being interpreted by Isis. In addition, the Company's 2008 3D seismic acquisition programme over Prospect 8Ts is about to commence. The Company remains confident about the overall prospectivity of Block XX and our ongoing programmes."
Technical information in this news release has been reviewed by Mr. Eric Tucker, the Chief Operating Officer and Principal Explorationist with ISIS. Mr. Tucker is a member of the American Association of Petroleum Geologists and the Petroleum Exploration Society of Australia. He holds a Fellowship Diploma in Geology from the Royal Melbourne Institute of Technology and has over 30 years of oil and gas exploration, appraisal and development experience.
| Further information: | |
| Petro Matad Limited | |
| Douglas McGay- CEO | +976 11 331099 |
| Hanson Westhouse Limited | |
| Richard Baty/Harry Barraclough | +44 (0) 20 7601 6100 |
| Bankside Consultants | |
| Simon Rothschild / Oliver Winters / Louise Mason | +44 (0) 20 7367 8888 |
Notes to editors:
Petro Matad is the parent company of a group focussed on oil exploration, as well as future development and production in Mongolia. The Group's principal asset is the 100 per cent. ownership of a Production Sharing Contract (PSC) over Block XX, a petroleum block with an area of 18,956km2 in the far eastern part of Mongolia.