PSC extension, updates on rig contract and farmout

RNS Number : 9742C

Petro Matad Limited

21 April 2017

 

21 April 2017

Petro Matad Limited

("Petro Matad" or the "Company")

PSC extensions and updates on drilling rig contract negotiations and farmout

PSC Extensions - Blocks IV and V

The Company is pleased to report that it has received an official letter from the Mining Resources and Petroleum Authority of Mongolia (MRPAM), dated 20 April 2017, confirming MRPAM's intent to extend the PSC exploration periods for Blocks IV and V by 2 years to 29 July 2019. The letter states that MRPAM sees no objections or issues in the extension and is currently undergoing the administrative process of the extension.

Petro Matad is of an opinion that the administrative process is in advances stages and expects the formal extension to be issued by MRPAM within the next month.

Drilling rig and services tender

As referenced in earlier announcements, the Company continues to negotiate the terms of the drilling rig and services contract. The Company expects to be able to announce the name of the successful bidder within the next two-weeks. Rig-mobilization to the first drilling site will commence within four-weeks of contract award. The Company remains on track to drill two exploration wells in 2017.

Farmout 

The Company's farmout and funding processes are ongoing and the Company continues to be in in active discussion with a number of parties.

Enquiries:

Petro Matad Limited

Ridvan Karpuz, CEO                                        [phone] / [phone]

NOMAD and Broker

Stockdale Securities Limited

Richard Johnson / David Coaten                  [phone]

 

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