Award of seismic contract

RNS Number : 0194O

Petro Matad Limited

16 September 2013

 

Petro Matad Limited ("Petro Matad" or the "Company")

Petro Matad awards seismic acquisition contract for Blocks IV and V in Mongolia

Petro Matad announced that Mongolian geophysical contracting company Khet Co., Ltd ("Khet") has been awarded the contract for the acquisition of 200 km of 2D seismic on Blocks IV and V in Western Mongolia. Khet has previously been engaged by the Company and successfully acquired 2D seismic data for Petro Matad in 2011. This seismic survey is planned to commence around 1 October 2013 and is expected to take approximately six weeks to complete.  The seismic programme is designed to provide detailed coverage over two prospect areas identified from earlier seismic and is expected to confirm at least two locations for drilling in 2014.

Commenting on the seismic programme the Company's Exploration Director Ridvan Karpuz commented "The geology of Western Mongolia is similar to that found in the Junggar and Turpan basins of China to the south, both of which are prolific hydrocarbon production areas. To date there has been no drilling in the similar basins in Mongolia. The seismic survey is designed to define targets for a potential drilling campaign in 2014 and is an exciting step."  

Farm out discussions

On 7 February 2013 the Company announced the start of a process to find a strategic partner to progress exploration activities on the Company's three PSCs in Mongolia.  The technical information made available on Blocks IV, V and XX has now been reviewed by a number of international oil and gas companies, and discussions are ongoing with certain of these companies.  Whilst there is no certainty as to the outcome of this process the seismic programme outlined above for Blocks IV and V is in line with the continuing discussions.

Petro Matad is also considering a number of options for returning to drilling in Block XX in 2014.

About Petro Matad Limited

Petro Matad is the parent company of a group focussed on oil exploration, as well as future development and production in Mongolia.  The Group holds the sole operatorship of three Production Sharing Contracts with the Government of Mongolia.  Block XX has an area of 10,340km² in the far eastern part of the country.  Blocks, IV and V are located in central Mongolia.  Block IV covers approximately 29,000km² and Block V approximately 21,150km².

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.

Further information:

Petro Matad Limited

George Watkins, Chairman

[phone]

NOMAD and Joint Broker

Westhouse Securities Limited

Richard Baty / Ian Napier

[phone]

Joint Broker

Macquarie Capital (Europe) Limited

Steve Baldwin / Nicholas Harland

[phone]

 

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