Heron - 1 Well Update

RNS Number : 9950I

Petro Matad Limited

14 August 2019

 

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY PETRO MATAD LIMITED TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU) NO. 596/2014 ("MAR"). ON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE ("RIS"), THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

14 August 2019

Petro Matad Limited

Heron-1 Well Update

Petro Matad Limited ("Petro Matad" or "the Company"), the AIM quoted Mongolian oil explorer, provides the following update on the Heron-1 well in Block XX, eastern Mongolia.

Further to the Company's announcement on 5 August 2019 that the rig at Heron-1 had been put on standby pending the resolution of a dispute on land use, the Company can now report that the central and provincial governments are resolving their issues and have given verbal approval for the Company to resume operations on Heron-1 whilst the necessary paperwork is completed. Preparations are now being made to drill the 8½ inch hole section on the well and simultaneously the Company is working with the local Governor to sign a land use agreement. The signed agreement is expected to be executed within the next few days. Total standby costs incurred to date are of the order of $150,000. The Company hopes to be able to make up some of the time lost on standby and based on current forecasts, drilling operations on Heron-1 and Gazelle-1 can be completed well within the normal operating period of the Mongolian drilling season.

Further updates will be provided in due course.

Further information please contact:

Petro Matad Limited
Mike Buck, CEO	[phone] / [phone]
Shore Capital (Nominated Adviser and Broker)
Richard Johnson Andy Crossley Toby Gibbs	[phone]
Stifel Nicolaus Europe Limited (Broker)
Callum Stewart Nicholas Rhodes Ashton Clanfield	[phone]
FTI Consulting (Communications Advisory Firm)
Sara Powell Ben Brewerton Genevieve Ryan	[phone]

About Petro Matad

Petro Matad is the parent company of a group focussed on oil exploration, as well as future development and production in Mongolia. At the current time, Petro Matad holds 100% working interest and the operatorship of three Production Sharing Contracts with the Government of Mongolia. Block XX has an area of 10,367 square kilometres in the far eastern part of the country and Blocks IV and V have an area of 29,062 square kilometres and 21,143 square kilometres, respectively, in the central western 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.

 

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