Partner Exit from Blocks IV and V in Mongolia

RNS Number : 8488W

Petro Matad Limited

29 April 2016

 

29 April 2016

Petro Matad Limited

("Petro Matad" or the "Company")
 

Partner exit from Blocks IV and V in West/Central Mongolia 

On 28 April 2016, Shell, through its affiliate company issued an Exit Notice to Petro Matad's 100% owned subsidiary, Central Asian Petroleum Corporation Limited, exercising the exit option under the Farmout Agreement dated 7 April 2015, to withdraw from the Block IV and V Production Sharing Contracts in West/Central Mongolia.

The decision by Shell is based on optimisation of its own portfolio and it is not related to the technical prospects for the blocks. The exit is subject to Mongolian government consent.

As required in the agreements, Shell's affiliate company will pay, subject to finalisation, an amount of compensation to Petro Matad's subsidiary as a result of the exit decision, such amount being highly material to the Company. Petro Matad's working interest in the two PSCs will revert to 100% from the 22% currently held.

Petro Matad will continue to execute the work program as planned. Currently, our seismic contractor is mobilising to the field and will soon commence the second phase of the planned seismic acquisition programmes in Blocks IV and V.  Further financial and operational updates will be issued in due course.

About Petro Matad Limited

Petro Matad is the parent company of a group focused on oil exploration, as well as future development and production in Mongolia. At the current time, Petro Matad holds the sole operatorship of three Production Sharing Contracts with the Government of Mongolia. Block XX has an area of 10,340 km² in the far eastern part of the country, and Blocks IV and V have an area of 28,900 km² and 21,100 km², respectively, in the southwest 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.

Further Information:

Petro Matad Limited

Ridvan Karpuz, CEO

[phone] / [phone]

NOMAD and Broker

Stockdale Securities Limited

Alastair Stratton / Robert Finlay

[phone]

 

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