PETEX conference and Update

RNS Number : 3048P

Petro Matad Limited

16 November 2016

 

16 November 2016

Petro Matad Limited

("Petro Matad" or the "Company")

PETEX conference and Update

Petro Matad is pleased to announce that the Company will be making a formal presentation at the PETEX conference being held in London on 15-17 November 2016.

The presentation materials have been posted on the Company's website on the following page:  http://www.petromatadgroup.com/investors/reports-and-presentations/

The presentation includes the Company's updated in-house estimates of undiscovered petroleum resources initially in place, as determined by its exploration team and consultants following the interpretation of new and previously acquired datasets in Blocks IV and V. Highlights of the presentation include:

·     With the incorporation of the results of the data acquired during the 2015-2016 exploration work program (including the acquisition of 1660 km of 2D seismic and 11,000 km2 of Full Tensor Gradiometer & High Resolution Aeromagnetic data), the Company has significantly upgraded its prospective basin portfolio. The current data coverage in the Company's acreage has revealed 12 basins and this is likely to increase as more work program activities, including seismic acquisition, are undertaken in the future. Therefore, excellent potential for discovering material hydrocarbon volumes exists within the Company's acreage.

·     Regional petroleum basin modelling and play evaluation work has addressed 6 key basins where the data coverage is currently more complete; these are: Biger, Shal, Baatsagaan, and Baidrag in Block IV; and Taats and Tugrug in Block V.   The other basins (which only have sparse data coverage) that make up the remainder of the 12 basins are: Delger, Bayantsagaan, Khangai, Orog, Khovor and Guchin-Us.

·     Potentially generated hydrocarbons using the play and basin analysis method on the 6 high-graded key basins is estimated to be circa 90 billion barrels of oil in the Upper Jurassic-Lower Cretaceous play, which is the proven and producing petroleum system in Mongolia.  The volume of potentially trapped oil ranges from 9 to 23 billion barrels of Stock Oil Initially in Place (STOIIP), assuming trapping efficiencies of 10% to 25%. Further upside potential exists in the deeper Permian-Jurassic play, which is analogous to the prolific systems in the western Chinese basins. The remaining six other sub-basins and other areas with limited data coverage will be the focus of future new seismic acquisition to determine their prospectivity potential.

·     The Company's play and basin focused exploration strategy has enabled the Company to build a portfolio which contains a wide range of exploration opportunities. This diversified basin portfolio approach has provided the framework for a spectrum of leads and prospects with different risk and reward factors, to be developed.  The result is that the Company has an extensive drill-ready high impact prospect portfolio for the upcoming 2017 drilling campaign and beyond.

Technical information in this news release has been reviewed by the Company's Senior Petroleum Geology Advisor, Mr. Andrew Barnwell, who is the Petroleum Geologist & Director at Barnwell Parker Geoscience Ltd. He has 30 years of experience in oil and gas exploration and holds a M.Sc./DIC in Petroleum Geology from Imperial College, London. Mr Barnwell is a member of the Petroleum Exploration Society Great Britain. 

Further Information:

Petro Matad Limited

Ridvan Karpuz, CEO                                        [phone] / [phone]

NOMAD and Broker

Stockdale Securities Limited

Richard Johnson / David Coaten               [phone]

Glossary

Play:  An exploration concept that includes a specific source, reservoir, and trap type. It is a recognized prospective trend of potential prospects, but which requires more data acquisition and/or evaluation to define specific leads or prospects.

Potentially generated hydrocarbons: Volume of hydrocarbons generated and expulsed from source rock.

Prospective resources:  Prospective resources are those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from undiscovered accumulations.

Prospective basin:  Basins which are considered to contain potential hydrocarbon resources based on available subsurface geological and geophysical data. The prospective basins are upgraded to "proven/producing basins" after a discovery made.

STOIIP or Stock Oil Initially in Place:  The volume of oil present in a hydrocarbon reservoir before the start of any production, stated in an equivalent volume that the oil would occupy when it is stocked in a storage tank at surface conditions.

Trapped oil:  Amount of oil contained in structures to which oil has migrated after expulsion from source rock.

Undiscovered petroleum resources initially in place: Quantity of petroleum which is estimated, on a given date, to be contained in accumulations yet to be discovered.

 

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