[douginil]

Thanks to Malcy's Blog

Sept 28, 2023

Petro Matad has announced its unaudited interim results for the six months ended 30 June 2023 and provides an operational update.

Key Company Updates

· The Company continues to push the Government to complete the regulatory formalities to allow completion operations at Heron 1 to commence. The Provincial Government has been very slow to respond which is putting the plan to complete the well before winter at risk.

· The local district authorities have however indicated that they are open to the Company operating in parallel with the slow-moving bureaucracy if Central Government supports the Company in doing so. This option is now being pursued as a priority.

· The 2022/23 Mongolian Exploration Tender Round continues with Petro Matad submitting two applications for new blocks and actively looking at one more area to determine if a third application is merited.

· Our renewable energy JV, SunSteppe Renewable Energy, is actively pursuing two projects, a battery energy storage facility and a green hydrogen project as it continues to push into the Mongolian renewable energy sector. Both projects have the potential to generate revenue in the near term.

Financial Summary 1H 2023

The Group posted a loss of USD 1.90 million for the 6-month period ended 30 June 2023, which compares to a loss of USD 1.62 million for the comparable period in 2022. The Company’s cash balance at 30 June 2023 was USD 8.39 million (USD 0.82 million in cash and USD 7.57 million in Financial Assets – which are term deposits with a term of 3 months or more), which compares to a cash balance of USD 6.62 million (USD 3.10 million in cash and USD 3.52 million in Financial Assets) on 30 June 2022.

As previously announced, a successful fundraise totalling USD 6.6 million of gross proceeds was completed in February 2023, primarily to fund exploration drilling in the Company’s operated Block V and to advance renewable energy opportunities through a newly established joint venture. Despite the continuing frustration with the delays in progressing the development of the Heron discovery it was very encouraging that both the placing and retail offer were over-subscribed.

Operational Summary 1H 2023

On the Company’s Block XX where the Heron discovery is ready for the first phase of development to begin, the land access issue, and thus commencement of production operations, remained delayed through the first half of 2023 subject to registration of the Exploitation Area as Special Purpose Land in accordance with Mongolia’s Land Law. Significant progress was made to secure the certification and all ministries in the Mongolian Government confirmed their support. The documentation for the certification was completed by end June for submission to Cabinet in July 2023.

In parallel, the Company finalised negotiations with DQE Drilling on a long-term drilling contract which will be submitted to industry regulator the Mineral Resources and Petroleum Authority of Mongolia (MRPAM) for discussion and approval. Commercial negotiations advanced with PetroChina for the use of its production infrastructure on neighbouring Block XIX.

On the Company’s Block V exploration PSC in central Mongolia, the Velociraptor 1 well was drilled on a high impact prospect in June/July with the full support of the local communities. The well was drilled on schedule and within budget but as has been reported previously, despite encountering more than 350 metres of good quality reservoir sections, the well was dry and it has been plugged and abandoned.

MRPAM’s 2022/23 Exploration Tender Round continued through the first half of the year and the Company has made applications for two blocks. Negotiations of the contractual terms are ongoing.

In early 2023, Petro Matad completed the formation of a joint venture company, SunSteppe Renewable Energy (SRE), to develop renewable energy projects in Mongolia with the goal of reaching construction ready status on its first projects within 24 months. Priority projects included a battery energy storage system project designed to help improve the stability of Mongolia’s electricity grid and so reduce coal consumption for power generation and allow the dispatch of more renewable energy from projects already in operation. The joint venture is also pursuing off-grid projects to supply renewable energy to mining projects where operators are keen to decarbonise their operations.

Operational Update and look ahead

Block XX: The Cabinet approved the special purpose certification of the Block XX Exploitation Area in early July, following which the Company has been pushing hard for the Government to complete the regulatory formalities and so allow completion operations at Heron 1 to commence. Whilst good progress has been made with Central Government agencies, the Tripartite Agreement between the Land Agency, the Ministry of Mining and Heavy Industry (MMHI) and the Provincial Government which regulates the management of special purpose land has yet to be finalized. The Land Agency issued the draft in July and MMHI quickly responded positively but the Provincial Government wants to complete herder compensation first and this further bureaucratic delay may jeopardise the chance to put Heron 1 on production before the winter operational shut down. In response, the Company is urging central and provincial authorities to speed up the remainder of the process and, with the special purpose certification now approved, Petro Matad has asked the district authorities to allow Heron 1 operations to go ahead in parallel with the slow-moving bureaucracy at central and provincial levels. The district representatives have signaled their willingness to consider this so long as the Central Government supports the initiative and MRPAM has confirmed its support and is preparing a letter to that effect. The Company continues to direct all its efforts at getting Heron 1 on stream before the oilfield contractors shut down for the winter.

Block V: The post-well evaluation of Velociraptor 1 is progressing.

New acreage: In addition to the two applications lodged for new blocks earlier in the year, Petro Matad is looking at one more area in the 2022/23 exploration tender round to determine if a third application is merited.

Renewables: Post the period end, the Company’s renewable energy vehicle, SRE, has made very good progress. In consultation with the Ministry of Energy, the need for a 50MW/150MWh battery energy storage facility in central Mongolia was defined. SRE’s team has completed the required feasibility studies and the grid connection study for the project has been approved by the National Dispatching Centre. All required documentation has been submitted to and accepted by the Technology Committee of the Ministry of Energy. Once the committee’s approval is in hand, the License for Construction of the facility will be requested. SRE expects that this project can be brought to construction ready status with a power purchase agreement and tariffs in place by mid-2024. SRE has access to land already under lease for the facilities within two kilometres of the tie in point and the footprint is small. The development costs of this project are low and the project is expected to offer a double-digit rate of return and could be online and generating revenue by 2025.

A second project involving a utility scale wind farm to supply renewable energy to generate green hydrogen for use at a mine operation in the South Gobi is also progressing with a forecast timescale similar to SRE’s battery storage project. The project is designed to demonstrate the viability of green hydrogen as a fuel for use in the mining industry in Mongolia and SRE is very excited to be involved. This initiative has the strong support of the Mongolian Government and a memorandum of understanding has been signed with the Ministry of Energy.

SRE and Petro Matad will determine, once these two projects reach construction ready status, how best to fund them. Debt funding for similar projects is already established in Mongolia, leaving open the possibility that SRE can aspire to stay involved in the construction phase and establish itself as a key renewable power producer in the country.

The potential for renewable energy in Mongolia is huge with solar and wind power set to make up an increasing part of the country’s energy mix in the coming decades. This has been embraced by lawmakers, with Mongolia ratifying international conventions including the Paris Agreement. SRE has made good progress so far and has identified several other projects for consideration. We look forward to progressing this exciting new venture that has the potential to generate revenue in the near term.


Mike Buck, CEO of Petro Matad, said:

“The slow pace of the completion of the regulatory process that will allow us to commence the Heron development is extremely frustrating. Whilst we are pushing hard with all agencies, and we have equipment and contractors ready to mobilise, unless the pace suddenly quickens it is now unlikely that we will get the Tripartite Agreement signed in time. However, we are working on a limited access agreement at district level and leaving no stone unturned to give us the chance to achieve our goal of getting Heron 1 onstream before winter.

Meanwhile, it is pleasing to see that our renewable energy initiative is moving ahead. The battery storage project has considerable follow-on potential since the Ministry of Energy has identified a significant need for energy storage in various locations throughout the country. The Government is very keen to see if green hydrogen can be used effectively, whilst the mine operators are looking to decarbonise their operations and SRE’s project targets these goals whilst also providing the potential for an excellent commercial return for the developer.

As ever we appreciate our shareholders’ patience as we work through the final stages of getting Heron 1 on stream and in particular, those shareholders that have been with us on this journey since the Heron discovery and before. I look forward to updating you further on our renewable energy initiative and our other ventures.”

Mike Buck’s reference to shareholder patience couldn’t be more apposite, with the chance of any major moves in the next few months I think MATD is more of a 2024 stock at the moment. The shares are resting on the YTD low but with the 1 year low a penny below here I think the November 2022 price will probably be re-visited first. Having said that I still feel that longer term there is something out there and I’m sure Mike will be over sometime to talk me through it, it’s been a long time!

[plumo]

https://www.docdroid.net/YVOTsfh/matd-20230710pdf-pdf

[douginil]

Thanks plumo

[plumo]

Petro Matad has announced that the Velociraptor-1 exploration well in the Taats Basin of Block V located in central Mongolia reached a total depth (TD) of 1500m and wireline logging has been completed but unfortunately all the reservoirs encountered were water bearing.

The well came in close to prognosis at all levels. The primary objective Late Jurassic/Early Cretaceous Undur Formation was encountered at 1170m and had good quality reservoir sands interbedded with shales over a c. 200m interval. In the secondary objective Early Cretaceous Shinehudag Formation, three thick sand units were drilled with average porosity of around 18%. Good quality electric wireline logs confirmed both objectives to be water wet.

The well will now be plugged and abandoned and the rig will be demobilised. Operations were carried out on time and as budgeted with the full support and cooperation of the local community. The well results will now be incorporated into the Company’s interpretation of Block V before any further operational activity is undertaken in the area.

Mike Buck, CEO of Petro Matad, said:

“The results of the Velociraptor 1 well are obviously disappointing but such high impact targets, drillable at modest well cost cannot be ignored when exploring frontier areas. The well provides a valuable new data point to help unlock the hydrocarbon potential of the southern Gobi. We will now incorporate the well results into our overall evaluation of the area. Meanwhile our operational focus shifts back to Block XX where the Heron development offers near term oil production and revenue generation and where low risk, near field exploration opportunities have already been identified which provide exciting upside potential.”

Further operational updates will be provided in due course.

This is indeed a big disappointment for Petro Matad and its shareholders for whom high expectations and a long wait have led to a dry hole at Velociraptor 1. But Mike Buck is right to say that this reasonably inexpensive well in a frontier acreage had to be drilled.

It is good that Block XX received the necessary approvals last week and it should be remembered that there are plenty of exciting things to go after in the Heron development. All is not lost…

[plumo]

Block XX Exploitation Licence
Petro Matad Limited (AIM:MATD), the AIM quoted Mongolian oil company is pleased to announce that the Cabinet of the Mongolian Government has approved the certification of the Block XX Exploitation Area, including the Heron oil discovery, as special purpose land.



Having received feedback from all other ministries, the Ministry of Construction and Urban Development, which is responsible for land issues, submitted the documentation to Cabinet and the proposed certification was discussed at the Cabinet's meeting on 5 July 2023. The Cabinet approved the certification and also instructed officials to conclude the follow up formalities required under the Land Law. The Company will now work with the central Land Agency and local authorities to complete the registration of the area and to sign the necessary contracts required by the regulations on the management of special purpose land. In parallel, we are already in discussion with service providers to determine a timeframe in which crews and equipment can be available for the completion for production of the Heron 1 well.



The certification of Block XX as special purpose land gives the Company the legal right of access to the entire area for the purpose of hydrocarbon exploration and exploitation.



Mike Buck, CEO of Petro Matad, said:



"We are very pleased that the Cabinet has approved the certification of Block XX as special purpose land. This important step has been a very long time coming but now provides a firm legal standing to the Company to execute the approved plan of development for Heron and to explore the exciting potential around it.



I would like to thank all our shareholders and in particular those that have been with Petro Matad for some years now, for their patience during this protracted certification process and I look forward to sharing further updates as we move into the next phase."



Further operational updates will be provided in due course.

[plumo]

Block XX Exploitation Licence
Petro Matad Limited (AIM:MATD), the AIM quoted Mongolian oil company is pleased to announce that the Cabinet of the Mongolian Government has approved the certification of the Block XX Exploitation Area, including the Heron oil discovery, as special purpose land.



Having received feedback from all other ministries, the Ministry of Construction and Urban Development, which is responsible for land issues, submitted the documentation to Cabinet and the proposed certification was discussed at the Cabinet's meeting on 5 July 2023. The Cabinet approved the certification and also instructed officials to conclude the follow up formalities required under the Land Law. The Company will now work with the central Land Agency and local authorities to complete the registration of the area and to sign the necessary contracts required by the regulations on the management of special purpose land. In parallel, we are already in discussion with service providers to determine a timeframe in which crews and equipment can be available for the completion for production of the Heron 1 well.



The certification of Block XX as special purpose land gives the Company the legal right of access to the entire area for the purpose of hydrocarbon exploration and exploitation.



Mike Buck, CEO of Petro Matad, said:



"We are very pleased that the Cabinet has approved the certification of Block XX as special purpose land. This important step has been a very long time coming but now provides a firm legal standing to the Company to execute the approved plan of development for Heron and to explore the exciting potential around it.



I would like to thank all our shareholders and in particular those that have been with Petro Matad for some years now, for their patience during this protracted certification process and I look forward to sharing further updates as we move into the next phase."



Further operational updates will be provided in due course.

[douginil]

Petro Matad from Malcy's Blog

June 20, 2023

we are delighted to have spudded Velociraptor-1



2022 Operational Highlights

The Company continued to push the Mongolian government and authorities to register Block XX Exploitation Area as special purpose land.
Negotiations with DQE Drilling entered their final stages for a multi-well development drilling contract with the Company securing cost reductions that can make a real difference to project cash flows and asset value.
Block V project readiness continued with a cost-effective drilling solution found for Velociraptor.
MRPAM announced an Exploration Licensing round covering 14 blocks in the prospective fairways of the southern half of the country.
Petro Matad continued to explore opportunities in the Mongolian renewables sector following Board approval to do so.

Current situation

On Block XX, the Company continues to push government on certification of the Exploitation Area as special purpose land and finally conclude the process. The Ministry of Construction and Urban Development has completed its internal work and has submitted the documentation to all other government ministries for comment prior to submission to Cabinet.
The Velociraptor-1 exploration well in the Taats Basin of Block V located in central Mongolia spudded on 13 June, targeting an inversion anticline prospect estimated to have 200 million barrels (MMbo) of Mean Prospective Recoverable Resource potential. Encouraging results in the Velociraptor prospect would significantly de-risk two adjacent prospects on the Raptor Trend which together have Mean Prospective Recoverable Resource potential of an additional 375 MMbo.
The Company raised US$6.6 million through a capital raise that will allow the Company to test the low-cost, high impact Velociraptor exploration prospect, evaluate new areas offered for licencing by the Mongolian government in the 2022/23 tender round and explore renewable energy projects.
The Company formed a joint venture (JV) with a very active and successful Mongolian renewable energy project developer called SunSteppe Energy (“SunSteppe”). This JV will give the Company an opportunity to compete in Mongolia’s growing renewables sector.

2022 Financial Highlights

As of 31 December 2022, the Group’s cash position was $5.1 million (Financial Assets) (31 December 2021: $8.2 million)
The Group’s net loss after tax for the twelve months ended 31 December 2022 was $2.95 million (31 December 2021: loss $2.1 million)

Mike Buck, CEO of Petro Matad, said:

“2022 saw an easing of Covid-19 related delays that had impacted service providers and cross-border activity. We were pleased that we were able to progress our preparations for Heron development, our negotiations with DQE Drilling and to continue our investigations on the Block V Exploration PSC.

This year we hit the ground running and set to work on a capital raise to allow Petro Matad to move ahead with testing the low-cost, high impact Velociraptor exploration prospect and evaluate new areas offered for licencing by the Mongolian government. We have also ventured into the renewable energy sector in Mongolia through the SunSteppe Renewable Energy joint venture which we hope will generate near term opportunities for us and our partner.

We continue to push forward with our 2023 work programme which of course includes urging the government to certify Petro Matad’s Block XX Exploitation Area as special purpose land. Meanwhile we are delighted to have spudded Velociraptor-1 which we have wanted to drill for some time. Encouraging results here would significantly de-risk two adjacent prospects on the Raptor Trend which together have a resource potential of an additional 375 MMbo.

I would like to thank our loyal shareholders for their continued support and hope that the recent spudding of the Velociraptor well demonstrates our firm commitment to our work programme. I very much look forward to updating you in the coming months with our progress on multiple workstreams that are now in play.”

Nothing new here, excitement about Velociraptor and no deal on Block XX.

[douginil]

from Malcy's Blog


Petro Matad has announced that the Velociraptor-1 exploration well in the Taats Basin of Block V located in central Mongolia spudded on 13 June. The well is the first on the Raptor Trend of prospects located 7km south of the Snow Leopard-1 well drilled in 2018 that proved a working petroleum system in the Taats Basin. Velociraptor-1 is targeting an inversion anticline prospect estimated to have 200 million barrels (MMbo) of Mean Prospective Recoverable Resource potential and is planned to drill to a total depth (“TD”) of circa 1,500 metres. The well is expected to take circa 30 days to reach TD and encouraging results in the Velociraptor prospect would significantly de-risk two adjacent prospects on the Raptor Trend which together have Mean Prospective Recoverable Resource potential of an additional 375 MMbo.

Block XX Exploitation Licence

On Block XX, the Ministry of Construction and Urban Development has completed its internal work on the certification of the Company’s Exploitation Area as special purpose land and has submitted the documentation to all other government ministries for comment prior to submission to Cabinet. We continue to press the relevant authorities to conclude this process.

The well that some thought might never get drilled is underway as Velociraptor-1 has spudded in the search for some 200 million barrels of oil and we will all know in around a month’s time the result of a well which could open up the adjacent Raptor prospects for another 375 MMbo.

Oh, and the certification of Block XX still awaits submission to Cabinet but surely…

[douginil]

Thanks for posting that link Plumo

[plumo]

https://masterinvestor.co.uk/equities/petro-matad-chasing-the-mongolian-raptors/

[douginil]

Thanks to Malcy's blog
https://www.malcysblog.com/2023/05/oil-price-coro-petro-matad-jadestone-and-finally/


May 22, 2023


Petro Matad has provided the following operational update.

Key Company Updates

· Rig arrival and Velociraptor 1 spud are forecast during the first half of June.

· Mobilization of site construction equipment to the Velociraptor 1 well location has commenced.

· Documentation proposing the certification of the Block XX Exploitation Area as Special Purpose Land for submission to Cabinet is being prepared by the ministries responsible.

· Negotiations with the Government for a new block in Mongolia’s 2023 Exploration Tender Round are continuing.

Block V Exploration

Mobilisation of equipment to prepare the drilling location and to set-up the camp for Velociraptor 1 operations has commenced. All required equipment for the well is in the country. The water source well for the operation has also been prepared for production. All activities are planned to be completed in advance of rig arrival which is forecast by contractor Major Drilling to arrive at site in early June and to spud the well by the middle of the month. The Velociraptor 1 well is expected to reach the prognosed total depth of circa 1500 metres in circa 30 days following which the well will be logged and the results evaluated. In the event of encouragement in the well, the rig contract allows for follow up with an appraisal well. All permits are in place for Velociraptor 1 and the contingent appraisal drilling.

Velociraptor 1 is targeting an inversion anticline with recoverable resource potential of 200 million barrels and the adjacent Oviraptor and Tsagaanraptor prospects would be significantly de-risked by success and have the potential to triple the resource potential on the exciting Raptor Trend. Whilst there has been very little exploration drilling done in this part of Mongolia, Velociraptor 1 is located 7 km south of the Snow Leopard 1 well drilled by Petro Matad in 2018. This well found excellent oil source rocks and oil shows and proved that there is a working petroleum system in the Taats Basin in which the Velociraptor prospect is well located to receive hydrocarbon charge.

With the well cost estimated to be less than $2 million, with attractive fiscal terms and a low cost onshore operating environment, Velociraptor 1 is an excellent opportunity in global oil exploration.

A further notification will be issued once Velociraptor 1 has spudded.

Block XX Exploitation Licence

Documentation prepared by the Ministry of Mining and Heavy Industry (MMHI) for submission to Cabinet to secure approval to certify the Block XX Exploitation Area as a Special Purpose Area was completed. However, the Ministry of Construction and Urban Development has insisted that as the ministry responsible for land issues, the Cabinet submission must come from them. As a result, they are repeating the step of asking all other ministries for comments after which we expect they will make the submission. The loss of more time whilst this is done is frustrating but highlights the fact that this is the first oil project to be put through this bureaucratic process based on regulations introduced in 2017 and the authorities involved have no obvious precedent to follow. The Company continues to push at all levels to underscore the importance of this licence for the Company and industry in Mongolia.

At the local level, the Company continues to engage with stakeholders and has also offered support to the province which is suffering from wildfires on the steppe due to recent dry conditions.

2023 Exploration Licencing Round

Negotiations with the Mineral Resources and Petroleum Authority of Mongolia (MRPAM) on the application for a block in Phase 1 of the 2023 open tender exploration licencing round continue. Discussions on changes to the Production Sharing Contract (PSC), on the proposed work programme and on fiscal terms have been completed. This part of the process involved a visit to the UK and to the Isle of Man by representatives of MMHI and MRPAM and we were honoured to be accompanied on the trip to the Isle of Man by the Mongolian Ambassador to the UK. Petro Matad continues to review other blocks in the tender round with a view to potentially submitting further block applications on those it high grades.


Mike Buck, CEO of Petro Matad, said:

“Preparations to drill Velociraptor 1 are well advanced and we are excited to spud in June and to explore the potential of the Raptor Trend.

“It is highly frustrating that the good work done by MMHI on the certification of the Block XX Exploitation Area as Special Purpose Land is now having to be repeated, but it is essential that the process is followed in full compliance with legislation. Shareholders can be assured that we are continuing to provide all input and assistance to the authorities in securing the certification.

“The recent visit to UK with senior representatives of MMHI and MRPAM provided an excellent opportunity to further strengthen our relationships with both organisations and we were honoured to be joined by H.E. Ambassador B. Enkhsukh, Mongolia’s ambassador to the UK, on the visit to the Company’s corporate agents in the Isle of Man.”

With Velociraptor 1 still on track for spudding in June at least MATD holders have some excitement coming up soon. With TD in around 30 days plus logging and testing they won’t have long to wait for what is a significant well for the company. The company is ready for any result including appraisal drilling in case of success.

As for the further delays to Block XX you couldn’t make it up, each time it is ready to go another obstacle is placed in the road and one wonders if the certification will ever be completed. Finally the company continue to progress their application for a Block in the 2023 Licence Round.

The shares have roughly tripled this year, excluding dilution from the raise, ahead of the Velociraptor drilling, so with no backing from Block XX the well has assumed the status of Atlas holding the value of MATD on its shoulders, no pressure there then…

[plumo]

https://www.lse.co.uk/media/MATD/mongolian-oil-developer-petro-matad-raises-66m-to-fund-2023-activities-we-speak-to-ceo-mike-buck.html

[plumo]

https://www.lse.co.uk/news/MATD/petro-matad-reports-slow-progress-at-block-xx-39qe2yen0g0zslt.html

[plumo]

https://www.lse.co.uk/rns/MATD/proposed-fundraise-for-a-minimum-of-us40-million-bgtl3wrd2tw1z2o.html

[plumo]

https://www.lse.co.uk/events/
link to the webinar petro matad.

[plumo]

LONDON, 5 December 2022: Petro Matad Limited ("Petro Matad" or "the Company"), the AIM quoted Mongolian oil company, provides the following operational update.

Key Company Updates

· Progress being made to register the Block XX Exploitation Area as special purpose land

· Mongolia announces 14 blocks available in a new Exploration Tender. Petro Matad plans to participate and exploit its competitive advantage as the country's leading explorer

· Negotiations with DQE Drilling in their final stages for a multi-well development drilling contract

· More time secured on Block V Exploration PSC and plans for drilling Velociraptor 1 being progressed

Block XX Exploitation Licence

The Mongolian government's process to certify Petro Matad's Block XX Exploitation Licence area as special purpose land is progressing. Meetings held at the Matad district and Dornod provincial levels of citizens' committees resulted in voting that did not to support the central government's certification proposal. The Mineral Resources and Petroleum Authority of Mongolia ("MRPAM") has however written to the Ministry of Mining and Heavy Industry ("MMHI") recommending certification of the Block XX Exploitation Licence despite the local committees' views. The Company's focus is now to support MMHI in progressing the matter through to a cabinet resolution as quickly as possible. Given the delays, Petro Matad is unlikely to be in a position to operate on the Heron development until the spring of 2023, once its land access rights have been re-established.

Production Readiness

The Company continues to target having everything in place to get the Heron 1 well onstream as soon as the land issue is resolved by the government. Pumping, downhole completion and power generation equipment is now all in country. Production tanks and other related surface equipment have been sourced from Petro China, offering a cost effective solution to achieve rapid production start up. Discussions with Petro China on oil processing, export and sales have also begun with the facilitation and participation of MRPAM.

Negotiations with DQE Drilling ("DQE"), the main provider of drilling services in Mongolia, have continued and a contract for a multi-well development drilling programme is in the final stages of discussion. The contract envisages a reduction in drilling costs and deferral of some costs to allow a portion of the drilling expenditure to be settled from future production revenue. The contract still needs to be finalised and agreed with DQE and then with MRPAM, but the cost reductions and payment phasing could significantly improve project cash flows and overall asset value since the largest portion of the Heron development costs are drilling related.

Block V Exploration

On the Block V Exploration PSC area, local government approvals for land access have been secured. This area does not have the same history with the oil industry that Dornod Province has and as such, just as in previous years, thanks to its continued focus on positively engaging with local communities, Petro Matad has been able to secure all necessary permits to work on the land covering the highly prospective Raptor Trend and the Velociraptor prospect. The Company is now looking at its options and the availability of equipment to drill Velociraptor 1 on Block V in 2023.

A cost effective drilling solution for Velociraptor has been found, most equipment needed has been sourced and is already in country and MRPAM has given the necessary contractual approvals. The approval of the Company's application to secure a moratorium for 2022 on Block V has also been received from MMHI. This extends the Block V exploration period until July 2024 and ensures that there will be sufficient time after Velociraptor 1 is drilled to gather enough data and submit the necessary documentation to secure a Block V Exploitation Licence in the event of success.

2022/23 Exploration Licencing Round

MRPAM has announced an Exploration Licencing round covering 14 blocks in the prospective fairways of the southern half of the country. These areas share the same stratigraphy and geological history as proven prolific oil basins of northern China. With its extensive data base, technical expertise and operational experience Petro Matad has a significant competitive advantage as the country's leading explorer and intends to participate in the licencing round with a view to signing some new production sharing contracts.

Renewable Energy Opportunities in Mongolia

Petro Matad continues to explore opportunities in the renewables space following Board approval to do so in 2021. Work has continued this year to investigate the technical and commercial drivers of solar, wind and battery storage opportunities. A potential partner, highly experienced and well connected in the renewable energy sector in Mongolia, has been identified and negotiations for a collaborative association are at an advanced stage. The Company will update shareholders on the progress of this opportunity in due course.

Social impact 2022

In 2022, the Company undertook a significant exercise to re-evaluate its Environment, Social and Governance ("ESG") commitments. In the process, Petro Matad established a newly formulated ESG Statement published on its website and in the annual report that better describes and demonstrates its commitment to environment, social well-being and governance.

At the local level, Petro Matad continued its close engagement with the communities in which it operates. To support local development, Petro Matad worked with local governor's offices to identify projects in Block V and sponsored a local volleyball team to participate in a national tournament, funded the renovation of 4 local administrational buildings, participated in a programme of livestock restocking and the construction of a water well for irrigation of trees. The Company contributed to tree planting programmes in Block V. In Block XX, discussions have been held concerning the multi-year local development programme. Whilst this programme is yet to be initiated, pending resolution of the land issue, as a goodwill gesture, Petro Matad together with its subcontractor DQE, funded the restoration of the Matad Soum landfill project.

London South East Webinar, December 2022

The Company will participate in the London South East webinar on 6 December to provide shareholders with an update on Company activity and the progress made in 2022. For those interested in joining the event, the registration link is: https://us02web.zoom.us/webinar/register/9716691130893/WN_sIXgMNagT9-wPQnBAsGhOQ

Mike Buck, CEO of Petro Matad, said:

"It has been a frustrating year for Petro Matad and our shareholders given the lack of progress on the land access issue in Block XX. We are hopeful that we are now reaching a new phase in the process with central government recognising that it needs to bring this access issue to an end through direct action.

Meanwhile, we are pleased with our progress on negotiations with DQE drilling and with the cost reductions that can make a real difference to project cash flows and asset value. Similar positive progress has been made on the Block V Exploration PSC area and we are excited about the potential to drill a high impact exploration well on the Raptor Trend in 2023.

I would like to thank our shareholders for sticking with Petro Matad this year and look forward to sharing further updates."

- Ends -

[douginil]

Petro Matad

Sept 26,2022

[[ Thanks to Malcy's Blog
https://www.malcysblog.com/2022/09/oil-price-angus-energy-longboat-energy-petro-matad-and-finally/
]]


Petro Matad announced on Thursday its unaudited interim results for the six months ended 30 June 2022 and provides an operational update.

Key Company Updates

· The Company has finalised the detailed Heron 1 completion plan with expert engineering input.

· Contract in place with DQE Drilling (DQE) and negotiations underway to substantially expand the size of the programme in order to accelerate development drilling and further reduce costs.

· Heron 1 surface facilities and power generation equipment is either at the border or ready to be shipped from China, subject to Covid-19 related lockdowns.

· Petro Matad continues to push government on the land access issue with the Company urging the Ministry of Mining and Heavy Industry to expedite certification.

Financial Summary 1H 2022

The Group posted a loss of USD 1.62 million for the 6-month period ended 30 June 2022, which compares to a loss of USD 1.02 million for the comparable period in 2021. The Company’s cash balance at 30 June 2022 was USD 6.62 million (USD 3.10 million in cash and USD 3.52 million in Financial Assets), which compares to a cash balance of USD 0.40 million (USD 0.38 million in cash and USD 0.02 million in Financial Assets) on 30 June 2021.

As previously announced, a successful fundraise totalling USD 10.4 million gross proceeds was completed in August 2021 to develop and further appraise the Heron oil field with the goal of commencing production in the second half of 2022. During the first half of 2022, the Company has used part of the proceeds raised to place orders for essential equipment required to put the Heron 1 well into production. The remaining funds received from the fundraise have been invested in relatively safe high yielding term deposits waiting on the ramping up of work programme activities. Throughout, the Company has continued with aggressive cost control measures including maintaining a small but highly active workforce with the necessary operational capability.

Operational Summary 1H 2022

Progress on preparations for operations in 2022 was good through the first half of the year but the Company’s ability to execute was impacted by China’s continuing Covid-19 response and from issues arising from Mongolian land law.

Extremely stringent restrictions imposed by China during the global pandemic to control the spread of Covid-19 were extended into 2022 and have significantly impacted the oil sector in Mongolia where almost all of the oil field service providers are Chinese. Mongolia’s oil export was stopped for most of the first half of 2022 due to the Chinese restrictions. Chinese rigs in Mongolia’s major producing fields were on standby and international border crossings were closed on the Chinese side or severely restricted, complicating and delaying imports and exports. Restrictions began to ease in June and the Chinese contractors in Mongolia were able to gradually restart operations on the country’s main producing fields in the middle of the year.

Petro Matad’s long struggle with local and central government authorities to have its land access rights restored as per the Production Sharing Contract (PSC) and Petroleum Law continued. Contradictions in the Land Law have caused issues for all PSC operators in recent years to varying degrees due to land management regulations introduced in late 2017. The impact of these is particularly prevalent in the province where Mongolia’s major oil fields and Petro Matad’s Heron discovery are located. Multiple requests by the Company and other operators for land access permission have been rejected without explanation by the local authorities. Anticipating this situation at the local level, Petro Matad pushed for central government to take action to certify the Company’s Block XX Exploitation Area as a Special Purpose Area, streamlining the approvals process, and to remedy the contradictions in the land law.

In late April the Cabinet of the Mongolian government gave instruction to the relevant Ministers to expedite matters reflecting the fact that Mongolia has a high-profile project underway to construct a domestic oil refinery that will need Heron production. Additionally, the government’s post-Covid-19 economic recovery plan highlights the importance of the upstream hydrocarbon sector in achieving Mongolia’s goal of greater energy independence. This high-level intervention from the Cabinet was very welcome as progress on the matter has been far too slow. The Company continues to push all governmental bodies involved to generate and maintain the necessary momentum.

During the first half of 2022 and despite the problems impacting the oil sector in-country and in China, Petro Matad pressed ahead with its preparations to be ready to commence field operations as soon as conditions allow. To this end, the company completed geodetic surveying over the Heron development area and prepared detailed construction plans as required by the regulations in place. The Company designed and selected surface production equipment including the Heron 1 beam pump and related equipment plus the necessary power generation package. The equipment orders were successfully tendered and awarded. The Company signed contracts for the downhole completion services for Heron 1 including fracking and the installation of the completion equipment. All environmental permits were approved and in place by mid-year to facilitate the commencement of operations once the land issue is resolved.

Operational Update

Since mid-year there has been further easing of the Covid-19 restrictions in China although some major cities have been put under lockdown when cases are reported. Daqing has been one such city which is home to the PetroChina subsidiary operating in Mongolia and to DQE, Mongolia’s most active oil field drilling contractor. Despite the problems in China, DQE currently has 3 rigs in operation in Mongolia with another scheduled to start soon. Petro Matad has a valid contract with DQE for new wells on Heron with prices reduced compared to 2019. Negotiations are also underway to expand substantially the size of the drilling programme incorporating further price reductions and economies of scale. These discussions have taken much longer than DQE originally proposed due in part to DQE management changes but the negotiations are continuing despite the Daqing lockdown.

Whilst Petro Matad’s field operations remain on hold pending progress on the land issue, the Heron 1 power generation equipment is at the border waiting to cross. The other equipment for Heron 1 that was manufactured in Daqing has been held up by the lockdown but there are indications that the lockdown will shortly be eased or lifted allowing this equipment to be shipped. PetroChina’s Mongolian operating company has offered Petro Matad some storage tanks already in-country at very low cost and discussions are ongoing for other items. Meanwhile, the Company has finalised the detailed Heron 1 completion plan with expert engineering consultant input. Discussions regarding provision of operational services and oil export with PetroChina continue, complicated recently by the Daqing lockdown, but these are planned to resume fully as soon as the relevant PetroChina personal are able to return to Mongolia.

The land issue has yet to reach a resolution. The Company has submitted another application to the local authorities for land access whilst at the same time, in response to pressure from Petro Matad, the legal process for Special Purpose certification is underway at the relevant ministries. Amendments to the Land Law are due to be debated in the next session of the Mongolian parliament and although this represents the best opportunity for an all-encompassing long-term solution, Petro Matad is urging the Ministry of Mining and Heavy Industry, under the newly appointed Minister, to help expedite the special purpose certification for Block XX as a priority in order to allow the Company’s in-field operations to commence as quickly as possible.

Mike Buck, CEO of Petro Matad, said:

“I fully appreciate that the lack of resolution on the land access issue will not be welcomed by shareholders. At this stage we have submitted an additional application to local authorities, are pushing for short and long-term solutions to speed up approval and continue to receive the support of the relevant ministries and the Cabinet of the Mongolian government to expedite the matter. We continue to work, day and night for a resolution.

In the first half of this year, we have made substantial progress on getting our production capability ready in order to ensure we can complete Heron 1 as soon as the land issue is resolved.”

Mike Buck, CEO of Petro Matad was right when he said that the shareholders would not like the lack of resolution on land access issues and how right ne was, the shares fell by some 30%. In a stroke the shares gave back all the recent gains, not quite what was wanted.

For those of us who believed that Mike Buck and his team could deliver the oil from Heron our patience has been tested but I still have faith that now that with eventually Covid retreating in China that progress will be made.

[douginil]

Thanks plumo for posting this information

[plumo]

Interim results for the six months ended 30 June 2022 and Operational Update

LONDON, 22 September 2022: Petro Matad Limited, the AIM quoted Mongolian oil company, announces its unaudited interim results for the six months ended 30 June 2022 and provides an operational update.

Key Company Updates

· The Company has finalised the detailed Heron 1 completion plan with expert engineering input.

· Contract in place with DQE Drilling (DQE) and negotiations underway to substantially expand the size of the programme in order to accelerate development drilling and further reduce costs.

· Heron 1 surface facilities and power generation equipment is either at the border or ready to be shipped from China, subject to Covid-19 related lockdowns.

· Petro Matad continues to push government on the land access issue with the Company urging the Ministry of Mining and Heavy Industry to expedite certification.

Financial Summary 1H 2022

The Group posted a loss of USD 1.62 million for the 6-month period ended 30 June 2022, which compares to a loss of USD 1.02 million for the comparable period in 2021. The Company's cash balance at 30 June 2022 was USD 6.62 million (USD 3.10 million in cash and USD 3.52 million in Financial Assets), which compares to a cash balance of USD 0.40 million (USD 0.38 million in cash and USD 0.02 million in Financial Assets) on 30 June 2021.

As previously announced, a successful fundraise totalling USD 10.4 million gross proceeds was completed in August 2021 to develop and further appraise the Heron oil field with the goal of commencing production in the second half of 2022. During the first half of 2022, the Company has used part of the proceeds raised to place orders for essential equipment required to put the Heron 1 well into production. The remaining funds received from the fundraise have been invested in relatively safe high yielding term deposits waiting on the ramping up of work programme activities. Throughout, the Company has continued with aggressive cost control measures including maintaining a small but highly active workforce with the necessary operational capability.

Operational Summary 1H 2022

Progress on preparations for operations in 2022 was good through the first half of the year but the Company's ability to execute was impacted by China's continuing Covid-19 response and from issues arising from Mongolian land law.

Extremely stringent restrictions imposed by China during the global pandemic to control the spread of Covid-19 were extended into 2022 and have significantly impacted the oil sector in Mongolia where almost all of the oil field service providers are Chinese. Mongolia's oil export was stopped for most of the first half of 2022 due to the Chinese restrictions. Chinese rigs in Mongolia's major producing fields were on standby and international border crossings were closed on the Chinese side or severely restricted, complicating and delaying imports and exports. Restrictions began to ease in June and the Chinese contractors in Mongolia were able to gradually restart operations on the country's main producing fields in the middle of the year.

Petro Matad's long struggle with local and central government authorities to have its land access rights restored as per the Production Sharing Contract (PSC) and Petroleum Law continued. Contradictions in the Land Law have caused issues for all PSC operators in recent years to varying degrees due to land management regulations introduced in late 2017. The impact of these is particularly prevalent in the province where Mongolia's major oil fields and Petro Matad's Heron discovery are located. Multiple requests by the Company and other operators for land access permission have been rejected without explanation by the local authorities. Anticipating this situation at the local level, Petro Matad pushed for central government to take action to certify the Company's Block XX Exploitation Area as a Special Purpose Area, streamlining the approvals process, and to remedy the contradictions in the land law.

In late April the Cabinet of the Mongolian government gave instruction to the relevant Ministers to expedite matters reflecting the fact that Mongolia has a high-profile project underway to construct a domestic oil refinery that will need Heron production. Additionally, the government's post-Covid-19 economic recovery plan highlights the importance of the upstream hydrocarbon sector in achieving Mongolia's goal of greater energy independence. This high-level intervention from the Cabinet was very welcome as progress on the matter has been far too slow. The Company continues to push all governmental bodies involved to generate and maintain the necessary momentum.

During the first half of 2022 and despite the problems impacting the oil sector in-country and in China, Petro Matad pressed ahead with its preparations to be ready to commence field operations as soon as conditions allow. To this end, the company completed geodetic surveying over the Heron development area and prepared detailed construction plans as required by the regulations in place. The Company designed and selected surface production equipment including the Heron 1 beam pump and related equipment plus the necessary power generation package. The equipment orders were successfully tendered and awarded. The Company signed contracts for the downhole completion services for Heron 1 including fracking and the installation of the completion equipment. All environmental permits were approved and in place by mid-year to facilitate the commencement of operations once the land issue is resolved.

Operational Update

Since mid-year there has been further easing of the Covid-19 restrictions in China although some major cities have been put under lockdown when cases are reported. Daqing has been one such city which is home to the PetroChina subsidiary operating in Mongolia and to DQE, Mongolia's most active oil field drilling contractor. Despite the problems in China, DQE currently has 3 rigs in operation in Mongolia with another scheduled to start soon. Petro Matad has a valid contract with DQE for new wells on Heron with prices reduced compared to 2019. Negotiations are also underway to expand substantially the size of the drilling programme incorporating further price reductions and economies of scale. These discussions have taken much longer than DQE originally proposed due in part to DQE management changes but the negotiations are continuing despite the Daqing lockdown.



Whilst Petro Matad's field operations remain on hold pending progress on the land issue, the Heron 1 power generation equipment is at the border waiting to cross. The other equipment for Heron 1 that was manufactured in Daqing has been held up by the lockdown but there are indications that the lockdown will shortly be eased or lifted allowing this equipment to be shipped. PetroChina's Mongolian operating company has offered Petro Matad some storage tanks already in-country at very low cost and discussions are ongoing for other items. Meanwhile, the Company has finalised the detailed Heron 1 completion plan with expert engineering consultant input. Discussions regarding provision of operational services and oil export with PetroChina continue, complicated recently by the Daqing lockdown, but these are planned to resume fully as soon as the relevant PetroChina personal are able to return to Mongolia.



The land issue has yet to reach a resolution. The Company has submitted another application to the local authorities for land access whilst at the same time, in response to pressure from Petro Matad, the legal process for Special Purpose certification is underway at the relevant ministries. Amendments to the Land Law are due to be debated in the next session of the Mongolian parliament and although this represents the best opportunity for an all-encompassing long-term solution, Petro Matad is urging the Ministry of Mining and Heavy Industry, under the newly appointed Minister, to help expedite the special purpose certification for Block XX as a priority in order to allow the Company's in-field operations to commence as quickly as possible.



Mike Buck, CEO of Petro Matad, said:

"I fully appreciate that the lack of resolution on the land access issue will not be welcomed by shareholders. At this stage we have submitted an additional application to local authorities, are pushing for short and long-term solutions to speed up approval and continue to receive the support of the relevant ministries and the Cabinet of the Mongolian government to expedite the matter. We continue to work, day and night for a resolution.

In the first half of this year, we have made substantial progress on getting our production capability ready in order to ensure we can complete Heron 1 as soon as the land issue is resolved."



Further operational updates will be provided in due course.

[douginil]

Thanks for posting plumo

[plumo]

Today update from ceo mike buck.

[Tamtam]

Nice rise

[douginil]

Petro Matad has provided the following operational update.

May 5, 2022

[[ Thanks to Malcy's blog ]]

https://www.malcysblog.com/2022/05/oil-price-petromatad-petrofac-ceag-and-finally/

The recent increase in Covid-19 related lockdowns and travel restrictions in China continue to impact Mongolia at a time when it was hoped there would have been significant relaxation. China is maintaining tight control on movement across its borders and there are currently no signs that these controls will be relaxed in the short term. This is impacting all businesses in Mongolia that rely on cross-border trade including the oil field service providers. PetroChina’s export of Mongolian oil production across the border into China is also suspended because of the Covid-19 controls and there are no Chinese oil rigs operating in Mongolia at the moment.

Block XX Exploitation Area

Petro Matad has continued to engage with local and central Government to secure all necessary permits. Local officials remain reticent to discuss applications due to lobbying on social media by a vocal minority protesting against industrial activity. This included at a recent local meeting when allegations were made about the Company’s Environmental Impact Assessment despite the fact it was prepared as per the regulations and has been approved by the Ministry of Environment.

For issues that cannot be resolved locally, Petro Matad has sought input from central government and this strategy has resulted in progress on the long-running land issue. In late April, the Cabinet of the Mongolian Government issued a resolution directing the certification of exploration and exploitation licences by the central Land Agency such that local approvals on land use are not required. We are advised by industry regulator, the Mineral Resources and Petroleum Authority of Mongolia (MRPAM), that this will allow work on all Production Sharing Contracts (PSCs) areas to progress without land access delays whilst the planned amendments to the land law that will remove the current legal ambiguities pass through parliament. We are pushing to secure the land certificates on Block XX and V as a matter of urgency. We will follow a similar strategy with the central Government if required to ensure there is no impact on our already completed environmental permitting.

With the Covid-19 situation in China causing operational delays in Mongolia, the Company continues to prioritise its efforts to get Heron 1 on stream. The contract with the chosen well completions contractor is in final form. We are seeking confirmation that equipment and crews for the completion and readying for production of Heron 1 are available as soon as we are ready to mobilise. It is our operational preference that as soon as the well is stimulated and completed it should immediately be put on production. The current suspension of all oil production and export from PetroChina’s Blocks XIX and XXI and with all on site storage full means that we need oil export to restart in order to optimise the start-up sequencing on Heron 1.

In anticipation of the situation improving, Petro Matad has placed orders for surface production equipment for the Heron 1 well and discussions with PetroChina, on the use of its production facilities are progressing well. We are also in discussion to buy or rent equipment from PetroChina Mongolia to avoid the need for, and current uncertainty of, importation.

Discussions with MRPAM on oil processing, transport and sales options were concluded with their full support and we are now in discussion with PetroChina’s Mongolian affiliate on the commercial details of sharing infrastructure and logistics.

Technical and operational cooperation, Block XX

In parallel with operational preparations for the 2022 programme, Petro Matad continues to work with DQE Drilling (DQE) on its proposal to enter into a cooperation agreement that could accelerate Heron Field development activities. Petro Matad has supplied a multi-year target work programme and this is under review in DQE’s headquarters.

Block V Exploration PSC

The Cabinet resolution on land access will assist in securing the necessary permits to allow the Company to work on the Raptor Trend. Having identified an in-country drilling contractor with equipment and experience in drilling to the target depth required on the Velociraptor prospect, we are now in discussion on potential rig availability and well cost.

Mike Buck, CEO of Petro Matad, said:

“China’s zero Covid-19 policy is having major impacts not only within China but also on Mongolia. Our preparations to operate are progressing well but, with uncertainty on when drilling operations in country will recommence, we are focusing as a priority on Heron 1 completion and production.

We are very pleased with the outcome of the Cabinet meeting held last week. The restoration of land use rights under the PSC is an important and necessary step, and we will continue to work with the local, district and provincial authorities to underline our intention to be a partner whose activities can continue to bring benefits to the communities in which we operate.

I would also like to personally thank our shareholders for their continued patience and support while we work to get Heron 1 on stream and implement our broader 2022 work programme.”

You couldn’t make it up, the bad luck that has rained on Mike Buck and his team at MATD recently but at least is is surely transitory and that the company is doing everything they possibly can to be ready to move fast to ensure that Heron 1 will be up and producing as soon as is possible.

I have written a good deal about China’s current woes in recent blogs but in the oil price section as the lockdowns in Shanghai and more recently Beijing have concerned markets with regard to Chinese economic growth. Now we have evidence of more micro problems and to add to the Covid problems they now have social media warriors getting involved.

Despite all this I remain confident that Mike and team will overcome the problems and backed by the Government will before long get Heron 1 on stream and get the longer term programme up and running, this is no time for faint hearts…

[Tamtam]

Matad should see more sp appreciation

[plumo]

And we are still waiting for news.Waiting and waiting for the first oil to be produced.Will it happen in the 2nd quarter.have my doubts about that.But it has to happen soon!!!!!!!
good luck to everyone who has had the stock for many years like me!

[Tamtam]

Matad could turn out to be a winner

[Tamtam]

Thank for the update plumo