Petro Matad

From Malcy's blog

Petro Matad has announced its audited final results for the year ended 31 December 2024. All monetary values are expressed in United States dollars unless otherwise stated.

2024 Operational Highlights

· The Company successfully began oil production from its Heron-1 discovery well in October 2024, which was a significant milestone after continued negotiations with Ministry of Industry and Mineral Resources (MIMR) and Mineral Resources and Petroleum Authority of Mongolia (MRPAM)

· The Heron-2 well spudded on 8 September 2024 and although drilling results were encouraging, on test the productive potential was significantly lower than rates observed at Heron-1. The well was suspended pending further analysis. The Gobi Bear-1 exploration well was also drilled with ambiguous results and a zone of interest is the subject of further study.

· In 2024, Sunsteppe Renewable Energy (SRE) increased its portfolio with the addition of two new high-graded projects. The portfolio now includes the 24MW Oyu Tolgoi (OT) mine Green Hydrogen demonstration project; the Choir 50MW Battery Energy Storage System; a 1,500MW export to China project and a 200MW Hybrid project associated with an operating power plant, all of which offer double digit rates of return.

· The Company participated in Mongolia’s Exploration Licensing round and awards were still pending at year-end. Block VII, the Company’s top-ranked block, was awarded to Petro Matad on 16 January 2025.

Mid-2025 operational update

· Heron-1 has continued to produce through 2025 initially on natural flow and now using artificial lift and to date the well has produced over 45,000 barrels.

· An oil sales agreement was signed with neighbouring operator PetroChina and Petro Matad received the first payment for production in June 2025. A 30% revenue withholding pending confirmation on certain potential concerns raised by PetroChina is being addressed as a priority.

· Work on Block VII is underway with encouraging results so far. Data on the seismic and drilling operations by the previous operator are being incorporated into the Company’s first phase evaluation.

· The Company’s renewable energy joint venture, Sunsteppe, continues to work on its four high-graded projects and is in discussion with debt providers and potential equity partners.

· Recognising an improvement in the business environment in Mongolia, Petro Matad has stepped up efforts to find farm-in partners for its upstream oil projects in order to accelerate development and production with the goal of increasing shareholder value.

2024 Financial Highlights

· During 2024 the Company executed an oversubscribed equity raise for gross proceeds of $9.4 million to fund its 2024 work programme.

· As of 31 December 2024, the Group’s cash position was $3.65 million (inclusive of Financial Assets) (31 December 2023: $4.5 million).

· The Group’s net loss after tax for the twelve months ended 31 December 2024 was $10.92 million (31 December 2023: loss $5.9 million).

Mike Buck, CEO of Petro Matad, said:

“After many years, 2024 finally saw Petro Matad start oil production from the Heron-1 well so becoming only the third producer in the country. While the Heron-2 well did not meet our expectations, we are working on a programme to determine the potential of the well as an oil producer or alternatively as a water injector.

Our renewables joint venture, Sunsteppe, made good progress in 2024 and the portfolio includes projects ranging from 24MW to 1,500MW. The Mongolian government has prioritised energy independence and is focused on progressing renewable energy export to China. Sunsteppe is well placed to be a serious player in this sector.

We are aware and appreciative of our shareholders’ patience through the delays our projects have suffered and of their continuing support.”

These historical figures as always only show data from the past and I’m sure Mike Buck would tell you, don’t reflect every bump in the road that has got MATD here. Even when he found and then ‘sold’ the oil the invoices weren’t fully settled and even now some 30% remains outstanding.

I would like to commend Mike and his team for getting this far in incredibly difficult conditions and whilst I can’t imagine it’s going to get any easier I would like to think that most of the hard yards have been made…

Great post RT. I needed the hole pot of coffee to read and understand it.

Phase 1 drilling of the 2025 exploration program has commenced and is expected to consist of seven holes totaling approximately 6,000 meters (m) of diamond drilling at the Goldstorm Deposit. The primary objective of the Phase 1 drill program is to expand the recently discovered high-grade gold Supercell-One system (SC-1), which was delineated over an 800 m by 400 m area during 2024. SC-1 is a gold-dominant, quartz-sulphide, breccia-hosted structural corridor open to the northwest, north and east. There is excellent potential to discover further high-grade SC-1 style gold-bearing structures proximal to the Goldstorm Deposit within a 600 m by 400 m area extending from SC-1 to previously identified high-grade intercepts within the 300H and 300N Domains of the Goldstorm Deposit.

Drill results from SC-1 in 2022 to 2024 include the following high-grade gold intercepts:

GS-23-176-W1: 15.00 m @ 15.64 grams/tonne (g/t) AuEQ (14.89 g/t Au, 4.72 g/t Ag, 0.60% Cu)

GS-22-134: 25.50 m @ 9.96 g/t AuEQ (9.66 g/t Au, 1.23 g/t Ag, 0.24% Cu)

including 4.50 m @ 20.86 g/t AuEQ (20.61 g/t Au, 1.50 g/t Ag, 0.20% Cu)

GS-23-179: 12.00 m @ 10.07 g/t AuEQ (9.78 g/t Au, 1.35 g/t Ag, 0.23% Cu)

GS-24-185: 13.50 m @ 9.60 g/t AuEQ (9.58 g/t Au, 0.44 g/t Ag, 0.01% Cu)

Drill results from 300H and 300N Domains in 2021 and 2023 include the following high-grade gold intercepts:

GS-21-113-W1: 13.50 m @ 8.96 g/t AuEQ (8.77 g/t Au, 15.10 g/t Ag, 0.01% Cu)

GS-21-113: 24.00 m @ 6.06 g/t AuEQ (5.81g/t Au, 20.30 g/t Ag, 0.01% Cu)

GS-23-178-W1: 12.00 m @ 6.03 g/t AuEQ (5.90 g/t Au, 12.31 g/t Ag, 0.01% Cu)

Nice presentation by Mark

Now that is a scary statement from the new Canadian PM

As I mention recently:

I for one do appreciate what you post about concerning TDRRF and ACKRF

Like to add EXK. to the above. Over the years I have found that I am usually 2-3 years early before they start to pay off in both my mining and oil stocks. For cash I have had to take some losses before they start to pay off..


Might want to look at PCOGF Pancontinental Oil & Gas ( www.marketindex.com.au/asx/pcl/announcements/pel-87-project-update-6A1256102).holds a operator permit in the heart of the West Nambia offshore Orange Basin

.

Thanks RT

I for one do appreciate what you post about concerning TDRRF and ACKRF

Eco (Atlantic) Oil & Gas

(Thanks to Malcy's Blog June 3, 2025)

Eco has announced that, further to the Farm-In Agreement announced on 5 June 2024, formal approval has been received from the South Africa Department of Mineral and Petroleum Resources for both the Exploration Right and Section 11 transfer. Accordingly, Eco has now secured a 75% Working Interest and full Operatorship of Block 1 offshore South Africa – one of the most strategically positioned assets in the highly prospective Orange Basin. The Section 11 approval was the final condition precedent to establishing full legal transfer of Eco’s working interest in Block 1 from Tosaco Energy (Proprietary) Limited (“Tosaco”), and the associated milestone payment has been made by Eco.

This acquisition, completed through Eco’s wholly owned subsidiary Azinam South Africa Limited (“Azinam”), significantly expands the Company’s Southern African Orange Basin footprint and positions it as a key Operator at the forefront of one of the world’s most active and hydrocarbon-rich basins. The remaining 25% interest is held by Tosaco.

Block 1, which spans a vast 19,929km², straddles the border between South Africa and Namibia – directly adjacent to recent world-class discoveries by Galp Energia (Mopane), Shell (Graff, La Rona), TotalEnergies (Venus), Rhino Resources (Capricornus-1X), and the legacy Kudu Gas Field. The block offers full margin transect coverage from the shoreline to deepwater (shore to 263km offshore, in water depths up to 1,000m), encompassing both shallow and deepwater exploration potential.

As previously announced, Eco has already acquired and is analyzing an extensive and high-quality dataset, including both 2D and 3D seismic surveys and regional well logs. The block includes the historic Soekor AF-1 gas discovery, which tested at 32.4 MMscfd, and Soekor AE-1, which encountered oil and gas shows which provides clear evidence of an active petroleum system.

The Company anticipates launching a formal farm-out process in respect of its interest in Block 1 in August 2025, with respect to which further updates will be provided in due course.

Block Summary:

· Area: 19,929km² offshore South Africa

· Location: Strategically positioned on the South Africa-Namibia maritime border

· Extent: From shoreline to ~263km offshore, covering the full margin transect

· Geological Scope: Broad spectrum of shallow and deepwater oil and gas prospects

· Water Depths: Shallow shelf to deepwater environments up to 1,000 meters

· Proven Petroleum System: Adjacent and geologically analogous to multiple recent discoveries: Galp Energia – Mopane, Shell – Graff and La Rona, TotalEnergies – Venus, Rhino Resources – Capricornus-1X (light oil), Historic Soekor Discoveries – AF-1 (32.4 MMscfd gas test) and AE-1 (oil and gas shows), Kudu Gas Field

Eco Atlantic remains committed to disciplined, value-driven exploration. With a strong technical foundation, entrepreneurial execution, and an unwavering focus on high-impact opportunities, it continues to position itself as a trusted partner in unlocking frontier basins and delivering long-term shareholder value. The Company has established itself well in Namibia with four Blocks currently being reviewed by international players to farm-in and has a near term drilling opportunity in Guyana that it is currently negotiating with partners to participate in the block.

Gil Holzman, Co-Founder and CEO of Eco Atlantic, commented:

“As the Orange Basin continues to demonstrate its world-class hydrocarbon proof and potential, Eco’s executive team has worked relentlessly over the past 18 months to secure a premier asset on the South African side of the basin. With the successful approval and execution of the Exploration Right and 75% Working Interest award, we are proud to have secured one of the largest and prospective blocks in the entire basin with a known hydrocarbon footprint – Block 1 – located directly on the South Africa-Namibia maritime border. Block 1 adds to our portfolio in the Orange basin which also includes Block 3B/4B operated by TotalEnergies.

“We are grateful for the productive collaboration with the Government of South Africa and its key agencies, particularly our valued partners at the Petroleum Agency South Africa (“PASA”). I was honoured to attend the signing ceremony yesterday at PASA’s offices in Cape Town. This milestone reflects the dedication and strategic focus of our leadership team in securing an asset with existing hydrocarbon evidence and significant upside potential and aligning with our strategy to partner directly with governments to secure agreements in high potential secure jurisdictions and to lay groundwork for future partnerships.

“Our technical team has already begun analysing the extensive, high-quality 2D and 3D seismic, and well logs data, which materially accelerates our path to drilling while reducing early-stage exploration costs and timelines. The block’s prior discoveries, including tested gas flows and oil shows, confirm the presence of an active petroleum system.

“Initial interpretation is underway, and we are in the process of delineating early leads to develop the exploration strategy. We are already seeing significant inbound interests from international oil companies and mid-tier partners. As a result, we anticipate launching a formal farm-out process in August with further updates to follow in due course.“

No new news here today as the deal has already been announced to the market but it does highlight the incredibly strong position Eco has built up in the highly prospective Orange Basin and on a pound for pound basis must be making an incredibly valuable portfolio. Receiving Government approval can never be taken for granted.

Put together with its also valuable stake in Block 3B/4B, operated by Basin giant TotalEnergies, who have already defined an active petroleum system with successful tests of gas and shows of oil, must give shareholders thoughts of significant upside.

Petro Matad

Petro Matad has provided the following operational update.

Key Company Updates

· The invoices for Block XX Heron 1 production from October 2024 to end April 2025 have been processed by PetroChina and are ready for payment. Prior to making payment, PetroChina has asked Petro Matad to get confirmation from the authorities that there will be no customs, VAT or tax charges levied resulting from the Oil Sales Agreement. That engagement is underway and if the response is slow in coming, Petro Matad and PetroChina are discussing payment of the majority of the amount due with a percentage withheld pending confirmation.

· Pumping at Heron 1 is now in operation to lift oil to surface with the well delivering c. 160 barrels of oil per day (bopd) with very low water cut below 6 %.

· Evaluating the merits of converting Heron 2 into an injection well to provide reservoir pressure support to Heron 1 to enhance productivity and recovery.

· Tenders for connection of Heron 1 to the local electricity grid to offset diesel usage are under evaluation.

· Gazelle 1 well test planning is ongoing with potential to put the well on production immediately if the test is successful.

· Gobi Bear 1 geochemistry study has confirmed the presence of migrated oil in the reservoir section.

· Block VII Environmental Baseline Study completed, 2025 budget approved and technical evaluation ongoing and attractive exploration targets identified.

· Discussions with potential partners on Block XX are ongoing.

Operational Update

Block XX

Oil sales

Invoices for payment for production from the October 2024 start-up of Heron 1 to the end of April 2025 have been processed for payment. Prior to making payment, PetroChina has asked Petro Matad to get confirmation from the authorities that there will be no customs, VAT or tax charges levied resulting from the Oil Sales Agreement. The engagement with the authorities is underway. The Company’s tax experts have been of the view throughout the negotiations of the agreement that no such charges are applicable under law and by precedent but if confirmation from the authorities is slow in coming, Petro Matad and PetroChina are discussing payment of the majority of the amount due with a percentage withheld pending confirmation.

Heron 1

After several months of production from Heron 1 on natural flow, the reservoir pressure has declined in line with the trend seen in Block XIX production wells and the originally installed beam pump to lift oil to surface is now in operation. The pumped production rate of the well is averaging circa 160 bopd with low water cut below 6%. Based on the results of successful reservoir pressure support programmes applied in Block XIX, we are reviewing the merits of converting the Heron 2 well into a water injector. Pressure support can enhance daily production and overall recovery.

The project to tie-in the Heron 1 wellsite to the nearby and recently upgraded electricity grid, to offset diesel use for power generation and so reduce operating costs, has reached the tender evaluation stage. If the commercial bids are attractive, we anticipate completing the connection during the summer months.

Potential to add more production in 2025

The planning for a well test on the Gazelle 1 oil discovery is ongoing. With a successful test, production via the nearby Heron 1 facilities would follow while the necessary certification work is completed to allow a full development of the accumulation. Meanwhile, a geochemistry study on cuttings samples from the Gobi Bear 1 well has concluded that migrated oil is present in the reservoir section. Whilst not a conclusive indicator of moveable oil in the well, this is a positive result and the petrophysical evaluation of the Gobi Bear 1 logs is being revisited to determine the zones with the best potential for oil pay and the optimal intervals for well testing. Success in a test at Gobi Bear 1 could add significant reserves in Block XX and the well could also be put on production through the Heron 1 facilities in short order.

Sequential well intervention activities on Heron 2, Gazelle 1 and Gobi Bear 1 offer a highly cost-effective way to further evaluate these wells. All three are cased to bottom and suspended so the cost to re-enter and perform well tests is low given that a small workover rig can execute the programme.

Block VII

An Environmental Baseline Study for the newly signed Block VII has been completed and this and additional documentation have been sent to the relevant ministries for approval after which the formal Exploration Licence will be issued. The 2025 work programme and budget comprising studies and fieldwork have also been approved by the Mongolian regulator, the Mineral Resources and Petroleum Authority of Mongolia (MRPAM).

In parallel with these legal requirements, Petro Matad has been working on the existing data. Examination of the data available on the well drilled by the previous operator confirms that it did not reach its target depth before it was abandoned. Drilling conditions appear to have been benign, as they generally are in southern Mongolia, and the abandonment seems to have been the result of equipment related and financial issues. The existing 2D seismic data is under review with indications of a large structure in the northeastern part of the block and this will be the subject of further work.

Mike Buck, CEO of Petro Matad, said:

“We are pleased to have agreed the amounts payable for Heron-1 production. We are working hard with PetroChina and the Mongolian authorities to get the first payment made and we look forward to a smooth monthly payment process thereafter. Meanwhile, our production operations continue and, as anticipated, after a period on natural flow, Heron 1 is now behaving more like the offset wells in the basin and artificial lift is now in operation. Although the pumped rate is lower than the rate on natural flow, we are pleased that the well is continuing to deliver and is doing so at a very low water cut.

We continue preparations for some low-cost well work for 2025 to support and potentially enhance production and Block VII appears to have some exciting potential. Our efforts to bring in partners are continuing in parallel.”

For Petro Matad it never rains but it pours, the invoice has not yet been paid by PetroChina, maybe the cheque is in the post…

With the Heron flowrates somewhat short of expectations the market has hit the shares very hard this morning, probably overdone but little scope to disappoint as we have found out. I’m sure that the evergreen Mike Buck will sort it out, I don’t know how he does it, really not.

Interesting article.

nambusinessexpress.com/?p=9607

Is there a link?

From Malcy's Blog - May 7, 2025

Eco (Atlantic) Oil & Gas

Eco has updated stakeholders on activities in its entry into Block 1 offshore South Africa, located in the proven and highly prospective Orange Basin.

As previously announced, Eco, through its wholly owned subsidiary Azinam South Africa Limited (“Azinam”), has entered into a Farm-In Agreement with Tosaco Energy (Proprietary) Limited to acquire a 75% Working Interest and Operatorship in Block 1 offshore South Africa. The Company is now in the final stages of securing the requisite Section 11 regulatory approval to complete the transfer of the interest and formalize operatorship, which is expected in the near term.

Data Acquisition and Subsurface Intelligence

Eco has now completed the acquisition of Block 1’s substantial volume of 3D and 2D legacy data from the Petroleum Agency South Africa (“PASA”) This purchase includes:

· Two 3D seismic surveys totalling 3,500 km² (2,000 km² and 1,500 km²)

· 20,000+ line kilometres of 2D seismic

· Three key exploration well logs: AF-1, AO-1, and AE-1 (All drilled on the block)

All data is of high-resolution quality and is processing-ready, with no reprocessing or reconditioning required. The seismic surveys offer full coverage across key structural and stratigraphic targets, from inboard gas-prone zones to outboard oil-charged systems.

Historical Well Data and Hydrocarbon Shows

The block benefits from three legacy exploration wells drilled in the late 1980s by Soekor, South Africa’s former state oil company. These include:

· AF-1: Confirmed gas discovery with tested flow rates of 32.4 MMscfd

· AE-1: Encountered gas shows and oil indications

· AO-1: Provided key stratigraphic data and reservoir markers

All three wells were part of Soekor’s regional Orange Basin program and offer critical calibration for seismic interpretation and future prospect de-risking.

Strategic Asset Overview

Block 1 spans 19,929 km² offshore South Africa, directly abutting the Namibian border. The block extends from the shore to the continental shelf, some 175km offshore then to ~263 km out into deep water, encompassing a full margin transect from the shelf to deep water channel and fan complexes.

Water depths range from shallow shelf (~200 m) to deepwater (~1,000 m), enabling a full spectrum of play types. The acreage is considered geologically analogous to the Kudu gas field to the north and sits immediately south of recent discoveries made by Galp Energia (Mopane), Shell (Graff, La Rona), TotalEnergies (Venus), and Rhino Resources (Capricornus 1-X light oil discovery).

Operational Readiness

Eco will assume operatorship of the block upon final regulatory approval. As the current Exploration Right Budget and Work Plan does not involve field operations, the program proceeds without the need for additional environmental permitting for immediate interpretation and technical work to progress.

Colin Kinley, Co-Founder and COO of Eco Atlantic, commented:

“The Orange Basin has rapidly emerged as one of the most compelling hydrocarbon fairways globally, with recent multi-billion-barrel discoveries adjacent in Namibia extending directly into the geological runway of Block 1. This asset provides Eco with material exposure across a full-margin basin play-ranging from proven, gas-rich inboard sections to oil-prone targets in the deepwater and ultra-deepwater domain.“

“This strategic acquisition of high-quality 2D and 3D seismic, along with historic well logs deliver massive value to the company. This acquisition is currently conservatively estimated to replace US$50-60 million in acquisition costs required for new exploration. The data quality enables us to aggressively pursue subsurface interpretation and prospect ranking immediately. This dataset provides a robust foundation for accelerated prospect maturation and the opportunity to consider potential farm-out and partnership conversations.”

“In parallel with our South African work program, we are actively negotiating farm-out and drilling participation opportunities on our Orinduik Block in Guyana. We will update the market as those discussions progress. Our Walvis Basin acreage in Namibia, particularly the ultra-deepwater blocks, is also receiving strong interest as Orange Basin real estate becomes increasingly competitive. We continue to engage with industry and government stakeholders to advance partnerships across these core positions. Finally, our interest in Blocks 3B/4B in South Africa-now operated by TotalEnergies-offers unique upside potential, both on completion payment of farm down costs to Eco and importantly drilling the significant resource opportunity assessed on the block.”

Exciting times for Block 1 which is fast becoming the next most ‘compelling hydrocarbon fairways globally’ and as neighbours make multi-billion-barrel discoveries next door to the North which ‘extend directly into the geological runway of Block 1’.

With a great deal of expensive data worth tens of millions of dollars this block is clearly been fast-tracked towards partnership, a resource report and in due course target selection and with final approvals expected soon, Eco shareholders, who are a canny bunch are expecting great things and why not?

Eco remains focused on disciplined, value-driven exploration, with its strong exploration team and entrepreneurial drive, and is committed to sourcing leading technical opportunities and to deliver substantial long-term value to its shareholders through partnerships and high impact exploration wells.

Corporate Presentation

Eco also announces that a new Corporate Presentation has been published on its website and is available at the following link : https://www.ecooilandgas.com/investors/results-presentation/

Hmmmm Father time has caught me. In retirement and have sold my NB but will hold on to my NIOBW. I still have a few years , but time is getting short.

Nice find danieldeubank. I'm only getting Modern Casting these days.

Hi AO That is what i remember also, 3 months to drill plus 2 months to evaluate.

Some good news for Teuton Resources aka TUO: JV partner Tudor Gold has received a five year extension to its work permit for the Treaty Creek property in BC's Golden Triangle. Most immediately TUD is waiting for further permits to begin construction of a 3 km tunnel which will allow year-round access to the gold-rich zones which have become the economic core of the project.

Oilman Jim's Letter - May 3, 2025

FYI

Galp Energia (GALP.LS GLPEF) stated that it has resumed talks with potential partners as it seeks to develop its 80% owned discovery in Namibia. In February, the company reported it had found a significant presence of light oil and gas condensate in a fifth well in the Mopane field offshore Namibia. Sintana Energy (SEI.V SEUSF) holds an indirect 4.9% interest through its 49% effective interest in Custos, which in turn owns 10% along with NAMCOR which holds the remaining 10%. Galp stated the well "unlocked a new exciting area within Mopane" and will advance on feasibility studies "in the coming months". At the same time, it is seeking to sell part of its 80% stake in Mopane's Petroleum Exploration Licence 83 to a player who would become its operator. Galp now is re-engaging with interested parties it has had conversations with before and data is being shared with them…more…more

Africa Oil (AOI.TSX AOIFF AFZ.F) via its investee company, Impact Oil & Gas, has received an update on the Marula-1X drilling operation on Block 2913B, offshore Namibia. The well has been drilled to a total depth of 6,460 metres measured depth, targeting Albian aged sandstones within the Marula fan complex, approximately 47 kilometres south of the Venus-1X well, using the Deepsea Mira semi-submersible drilling rig. No hydrocarbons were encountered in the primary target in the Marula-1X well and no drill stem test was performed. A comprehensive analysis of the well results is now underway. Impact has a 9.5% interest in Blocks 2912 and 2913B, and Africa Oil through its 39.5% interest in Impact has an effective interest of approximately 3.8% in these blocks. Block 2913B contains the Venus light oil discovery. The farm down agreement between Impact and TotalEnergies provides full carry of Impact's exploration and development costs on Blocks 2912 and 2913B through to first commercial production from these blocks, presenting the company with an attractive opportunity set to test different geological plays on these blocks at no upfront cost…more

My question exactly. If the Govt seems to be so hot for the RRE's maybe we need to rethink our refining part of the project or even a new project like the SC-AL process and other ideas that are floating around.

Nice find ge11. Shows that the "-US-EXIM-Bank-for-900-Million-Financing" US EXim Bank is not afraid loans close to a trillion $'s.

Thanks for the wishes for a long life Putz.

I would hope that the "proven capability" to design, engineer, build, and refine RRE's and critical metals in the pilot plant in Canada there is suficient to get the project off the ground. There may be a chance that a contract for a separate refining plant to process the Ukrainian ore might be in the works with super "hot" priority.

Yeah It seemed that in the questions section Honan was saying that they couldn't break the project into a refining plant project and a mining project because our refining process will be so unique to the blend of our ore that it wouldn't work or would require more capital to become more flexible for different ore blends. I would say I would agree with that based on the economic situation a few years ago.

However, based on the "panic" situation that the govt is in for the RRE's and other critical metals maybe the govt might be anxious to throw some capital for improved refining flexibility if something might could be on-lline in 2 years. Remember the pilot plant in Canada is available to "fiddle" with different ore blends and maybe go into production with other's ore, maybe even recycling the magnets that are being scrapped.

Lets face it 3 years is a nice goal but realistically in my opinion 4 years is probably a more reasonable estimate for our mine/refining combination to be in some sort of production. Unfortunately I'll probably be in RIP land by then.

Almost fell out of my chair when I heard a "6-9 month" month estimate to get something done.

I saw the notice for the webcast today at 12 noon Central time. I remember filling in the form but have have seen nothing else about actually login in to watch the webcast. Am I missing something?

Doug

April 28, 2027 - Malcy's Blog


Petro Matad

Petro Matad has announced the signature of an Oil Sales Agreement for Block XX crude oil.

On 28 April 2025, Petro Matad and PetroChina Daqing Tamsag, the operator of neighbouring Block XIX, signed the Oil Sales Agreement covering storage, processing, transport and export of Block XX crude oil production. Petro Matad’s invoices for the production from the Heron 1 well for the period 24 October 2024 to 31 March 2025 have been submitted and, under the agreement, will be processed for payment during the month of May.

Point forward, Petro Matad is required to submit an invoice for each month’s production on or before the tenth day of the subsequent month and payment will be made during the last week of the month based on the average benchmarked price of Daqing crude oil for the month of production. Custody transfer of Block XX oil takes place at the Block XIX processing facilities and PetroChina is responsible for processing, transport and export of the crude to the buyers in China.

Mike Buck, CEO of Petro Matad, said:

“We are delighted to have signed the oil sales agreement for the commercialisation of Block XX production. This involved a number of firsts for Mongolia and whilst the process was slow, we are grateful to the Mongolian authorities and to PetroChina for their support. We look forward to establishing a cooperative routine in the sales process in the same way that the field crews in Blocks XIX and XX have done in the production operations over the last 6 months and to receiving payment for all the oil produced to date during the month of May.”

Eventually MATD has a signed up Sales Agreement with PetroChina for Block XX output and not before time. I am very happy for Mike Buck and his team who have exhibited an awesome degree of patience and I wouldn’t begrudge them a few beers to celebrate when the boat comes in.

The company has been producing c.200 b/d since October 2024 so has around 25/- b’s in stock which they will get paid for in May and after that monthly payments in arrears. What happens from here at Heron is largely what the company will explain to shareholders shortly but for now they can enjoy this for what it is, a genuine milestone for MATD.

Interesting reading about Ucore Rare Metals UURAF post #'s 2158, 2159.

AMERICAN CREEK'S JV PARTNER TUDOR GOLD INCREASES OVERALL GOLD RECOVERIES TO OVER 80%, PRODUCES A HIGH-GRADE COPPER, GOLD AND SILVER CONCENTRATE FOR THE GOLDSTORM DEPOSIT AT TREATY CREEK, GOLDEN TRIANGLE OF BRITISH COLUMBIA

goto:
https://mailchi.mp/78d3445fffa5/american-creeks-jv-partner-tudor-gold-increases-overall-gold-recoveries-to-over-80-produces-a-high-grade-copper-gold-and-silver-concentrate?e=6f11d69fd1

250318_Pancontinental_Oil

Thanks to Malcy’s Blog 3/18/25


Sintana Energy about Pancontinental

Sintana has provided the following update regarding developments associated with blocks 2713A and 2713B located in Namibia’s Orange Basin. The blocks are governed by Petroleum Exploration License 87 (“PEL 87”) which is operated by Pancontinental Orange Pty Ltd., a subsidiary of Pancontinental Energy NL (ASX:PCL) , who maintains a 75% interest in PEL 87. Additionally, Custos Investments (Pty) Ltd. (“Custos”) maintains a 15% interest and the National Petroleum Corporation of Namibia (“NAMCOR”) maintains a 10% interest. Sintana has a 49% indirect interest in Custos.

Pancontinental has received notification from Woodside Energy that Woodside has elected not to exercise its option to farm-in to the PEL 87 project. This notice has been received in advance of the long stop date of May 18th, 2025, after which Woodside’s option was due to expire.

A process is underway to secure an alternate farm-in partner to fund exploration drilling within PEL 87 at the earliest opportunity.

Significant prospectivity has been identified by the high quality 6,593 km2 3D seismic dataset that was fully funded by Woodside. Subsequent interpretation and evaluation has returned an inventory of intra-Saturn leads and prospects which are estimated to be consistent in size and scale to the discoveries made to date in the Orange Basin. Pancontinental, together with the Joint Venture partners, is continuing to mature and refine a growing inventory on PEL 87.

“We look forward to deploying our portfolio of relationships with operators including the supermajors to bring forward the potential of PEL 87.”

said Knowledge Katti, Chairman and Chief Executive Officer of Custos and a director of Sintana.

“The extensive dataset arising from the seismic acquisition campaign funded by Woodside, together with the continuing work to define and refine a significant inventory of leads and prospects, position the PEL 87 partners to expedite farm-in discussions.”

Said Robert Bose, CEO of Sintana. “PEL 87 is an integral part of our Orange Basin portfolio.” he added.

This is a very interesting situation but not one that is a great surprise, the scale and complexity of the Saturn complex has only recently become apparent and whilst there is a ‘significant prize’ here the scale and scope of which will require a material commitment of time and resources to unveil.

Accordingly it has become clear, even to me, that Woodside are simply not in a position to fund their share of the development on their own. This is particularly as they have been increasingly focusing on the LNG and gas development side of the business, these tend to carry IRR and payback targets of 15%+ and 5 years, the latter being hard to fit here. Accordingly they were unlikely to be able to stay with PEL 87 given the required commitment, a decision that I hear went right to the top…

The other thing that is becoming obvious is that Pancontinental has been developing ‘some fatigue’ on what has become a somewhat protracted process. Given that in recent months there has been a lot of activity, a great deal of progress in the basin and independent work which has resulted in a world class asset in both size and quality.

Finally, having seen all this activity it seems that given the red hot nature of the Basin, bringing with it the best companies with the fattest wallets, and indeed smartest partners, other conversations are taking place. I think that going forward this is good news for the partners, although it may be short term pain the long term gain is ‘huge’ according to my expert inside the tent.

Sorry you feel that way JD400, but I do appreciate many of your other posts.

Petro Matad Limited, the AIM quoted Mongolian oil company is pleased to provide the following operational update.

Key Company Updates

· Heron 1 production continues with c. 25,000 barrels now in storage in Block XIX.

· The Block XIX operating committee has today confirmed acceptance of the oil sales agreement and execution copies are being uploaded to their online system for sign off.

· Evaluations are underway to support a set of low-cost activities for 2025 in Block XX focused on operating cost reduction and production increases at Heron 1 and the potential to conduct workovers/well tests at Heron 2, Gazelle 1 and Gobi Bear 1.

· With oil now flowing from Block XX and the investment environment improving under the current government, Petro Matad is stepping up efforts to secure a partner to accelerate its oil development activities. Discussions with three entities are ongoing.

· Sunsteppe Renewable Energy is progressing four exclusively held projects with strong government support for the sector.

Operational Update

Block XX

The Heron 1 well continues to produce steadily at c. 200 barrels of oil per day. Pressure data is being acquired to facilitate production analyses to determine what modifications can be performed to increase the sustainable production capacity of the well. To date the well has produced over 25,000 barrels of oil with a water cut of c. 4% and pressure data shows no signs of boundaries encountered within the reservoir as yet. With a recent upgrade to the eastern Mongolian power grid, a short (4 km) tie-in of Heron 1 to the electricity grid can reduce power generation costs significantly, offering a saving in operating expense of c. 25%. The Company is going out to tender for this work.

Oil continues to be shipped to Block XIX. The operating company has today confirmed acceptance of the oil sales agreement and that execution copies are now being uploaded to their in-house online system for sign off. Petro Matad has been chasing for progress on this as the start of revenue is already long overdue. It now appears we are in the final stretch. Even though Block XIX has tank capacity available to store many more months of Block XX production, Petro Matad has been investigating arranging its own shipments and sale of Block XX crude in case of further delay. The current inventory of Block XX oil in the Block XIX facilities constitutes a suitable cargo size to offer for sale. However, the cooperation with Block XIX remains the most cost effective and the preferred solution.

Block XX – Heron 2

Analyses of the Heron 2 well continue in order to evaluate the potential for remedial work that may help deliver a commercial flow rate. That the nearby Heron 1 well has yet to see any pressure impact of a boundary, that might reflect a degradation in reservoir quality (that is suspected as the reason for low production in Heron 2), gives reason to believe that a workover and further stimulation of Heron 2 may be worthwhile. A workover at Heron 2 could be combined in a cost-effective manner with well testing of the nearby Gazelle 1 oil discovery. Gazelle 1 is now considered to be a candidate for test production as it can share the nearby Heron 1 production operation and infrastructure. A well test at Gazelle, if successful in achieving a similar production rate to Heron 1, would pay back within a couple of months. A well test of Gobi Bear 1 is also being considered. Geochemical analysis of rock samples has given an indication of migrated hydrocarbons in the well. More samples are being sent to the contractor to confirm this finding which would give support to the log interpretation of potential oil pay in the well.

In light of the fact that the current Mongolian government acted quickly in 2024 to overcome previous delays and so facilitated operations on Block XX and in 2025 is striving to improve the overall investment climate, Petro Matad is stepping up its efforts to secure a partner to join it in developing the Heron oil field and the rest of Block XX. The Company is targeting financially and technically competent companies with a view to secure an injection of capital investment to drill new wells to accelerate production ramp up and so enhance value. Discussions are ongoing with three entities at this time. The Integrated Service Agreement signed with Mongolia’s main provider of well services, DQE Drilling, for a multi-well development drilling and completion programme remains in force and the Company has the option to utilise this arrangement as may be appropriate and with minor adjustments to facilitate regulatory approval.

Sunsteppe Renewable Energy (SRE)

Mongolia’s coalition government, which came into power in June 2024, has given very strong support for renewable energy and has prioritized reform of the domestic energy sector including the acceleration of tariff increases for end-users, in order to improve the investment environment and to attract local and international investors. In parallel, the Ministry of Energy has announced that Mongolia’s domestic energy demand will double by 2030, increasing by c. 1.6 gigawatts. This highlights the need for new power generation capacity in Mongolia and SRE is well-positioned to capitalise on the opportunities this new government focus is generating.

Additionally, Mongolia is in advanced discussions with Gulf countries including the United Arab Emirates and Saudi Arabia and their respective major renewable energy investors, to accelerate the development of large renewable energy export projects from Mongolia to China. Interactions between the Mongolian and Chinese governments have intensified with China officially agreeing to begin collaboration on Mongolia’s energy export projects. China has announced its need for over 450 gigawatts of clean energy to meet its increasing domestic demand and sees renewable energy imports from Mongolia as a component to meet this need.

Recognising SRE’s international experience and its active involvement in renewable projects in Mongolia, the government invited SRE’s CEO to participate in recent visits to the Gulf and to China and this has given SRE some excellent exposure and insight. In parallel with this, SRE has signed confidentiality agreements with a number of potential investors and has shared with them details of its ever-increasing portfolio of projects in Mongolia.

SRE’s portfolio currently includes four exclusively held projects:

1. Oyu Tolgoi (OT) mine Green Hydrogen: The completed feasibility study has confirmed the commercial viability of this c. 30MW project comprising a solar and wind plant to generate Green Hydrogen for OT and it offers an attractive internal rate of return of c. 15%. Intensive discussion with OT continues and meanwhile SRE is preparing for the construction of the first 4.8MW phase of the project and has engaged with leading Chinese and international contractors with proven expertise in Green Hydrogen facilities for the execution of phase 1 and of the entire project. In line with the Japanese government grant timing, project construction is set to commence within 2025. Discussions with OT on an offtake agreement to include Hydrogen and power are set to start and once this agreement is finalised, SRE will look to introduce investors and debt providers. Interest for equity and debt participation has already been expressed by potential partners.

2. Choir 50MW Battery Energy Storage System: The original timescale for this project has slipped pending land allocation for the facilities but suitable land within 3 km of the substation tie-in point is expected to be offered by the authorities shortly following last week’s Cabinet approval of Mongolia’s countrywide 2025 land plan. Once land is secured, this will allow completion of environmental permitting and the application for the license to construct. This will be followed by negotiation of the Power Purchase and Sale Agreement. SRE plans to bring in investors on equity and debt once this agreement is in place.

3. 1,500MW export to China: SRE has an exclusive cooperation agreement with leading Chinese utility, State Power Investment Corporation (SPIC), for a large export to China project. It is hoped that the vigorous government-to-government discussions now underway to get such export projects moving will allow SRE’s project to advance more quickly than was originally envisaged. SRE is keen to retain up to a 30% interest in this mega-project in the construction phase, in order to attract interest from some of the major international investors with whom SRE is in discussion. SPIC so far seems open to SRE’s aspiration.

4. 200MW Hybrid project: SRE has signed an exclusive agreement with Mongolia’s Bodi Group which is developing a 600MW energy project. So far one 150MW coal fired power station has been commissioned with another 150MW phase under construction. Bodi and SRE are partnering to develop renewable energy capacity alongside the power plant. This project is particularly attractive as it has an approved Power Purchase Agreement (PPA) with the Mongolian government at a very attractive sales price of 8.9 US cents per kWh for 600MW and the parties are keen to replace at least 200MW of this with renewable power supplied from a hybrid solar, wind and battery storage plant. SRE is responsible for feasibility studies and securing regulatory approvals. SRE has already identified a suitable solar project site within 30 km of the tie-in point. Bodi will assist in securing land approvals. This renewable energy/decarbonisation project has attracted early interest from multilateral financial institutions and international investors.

Mike Buck, CEO of Petro Matad, said:

“As we prepare for the 2025 operational season, our priority is securing revenue from the sale of Block XX oil. We were pleased to be informed today that the oil sales agreement negotiated with our neighbouring operator in Block XIX is approved and being prepared for sign off. We are looking at the potential to sell cargoes ourselves in case of further delay but the oil sales agreement remains our preference.

When the operating season starts in Q2, we have plans to conduct some relatively low-cost activities to reduce the Heron 1 operating expense as well as to enhance production and so increase revenue. With the completion of ongoing evaluations, these activities will focus on some or all of the Heron, Gazelle and Gobi Bear wells.

Our efforts at Heron coupled with the new government’s efforts to improve the investment climate, create good conditions for us to step up efforts to find a partner for Block XX that can inject capital, and possibly expertise, to accelerate production ramp up and increase project and shareholder value.

We are very encouraged by the performance of SRE. The portfolio continues to grow with additional opportunities currently under evaluation for inclusion. Exclusive agreements are in place on four sizeable projects offering double digit rates of return which are already attracting interest from well-financed prospective partners. We are targeting the finalisation of PPAs on these projects which is the point at which commercial details of partnerships can be negotiated.”

Selling the 200 b/d of production remains a problem but assuming that the sales agreement does eventually get signed then the company can get on and start selling. With 25/- barrels in storage at Block XIX it looks like revenue is just around the corner.

SRE does look interesting, indeed ‘encouraging’ and with four decent projects on the books their appears to be potentially substantial, ‘double digit’ rates of return the outlook is good.

Thanks for the update blackshirej. Is there another board that he posted too?

Thanks for posting these updates, I have been following TUO

American Creek's JV Partner Tudor Gold Announces Positive Results from Initial Metallurgical Testing for the High-Grade Gold Supercell-One Complex Within the Goldstorm Deposit, at Treaty Creek, Located in the Heart of the Golden Triangle, British Columbia

Cardston, Alberta--(Newsfile Corp. - February 27, 2025) - American Creek Resources Ltd. (TSXV: AMK) (OTCQB: ACKRF) ("the Corporation" or "American Creek") is pleased to announce that project operator and JV partner Tudor Gold ("Tudor") has announced initial results from ongoing metallurgical test work on the high-grade gold Supercell-One Complex (SC-1), located at the Treaty Creek Project situated within the Golden Triangle of British Columbia. The initial metallurgical results of the SC-1 composites follow the highly successful initial metallurgical results of the CS-600 Sub-Domain which were released in the corporation's press release dated October 25, 2024 and highlighted in this press release below.

The SC-1 Complex was discovered during the 2024 drill campaign. This discovery demonstrates significant additional economic potential for the Treaty Creek Project. The SC-1 Complex is peripheral to the CS-600 copper-gold domain and is best described as a series of sub-parallel, intermediate- to low-sulphidation breccia structures that overprint the Goldstorm gold-copper-silver porphyry deposit. The structures are superimposed over and cut through the CS-600 copper-gold domain as a late-stage event. The SC-1 Complex is comprised of four distinct breccia structures: SC-1A, SC-1B, SC-1C and SC-1D. While SC-1B carries high-grade copper and silver mineralization, in addition to gold mineralization, it is the only structure that is considered polymetallic. The other three structures, SC-1A, SC-1C and SC-1D are all high-grade gold systems.





Read & Graphics at:
https://us5.campaign-archive.com/?e=6f11d69fd1&u=af629dcbbf88a5932a7e484e3&id=6d95658aa9

Remember parts of a bar of gold in the vault may be owned by several separate clients, the USA may have custody but may own less than 100% of the value.

American Creek Resources Announces Termination of Arrangement Agreement

Cardston, Alberta--(Newsfile Corp. - February 21, 2025) - American Creek Resources Ltd. (TSXV: AMK) (OTCQB: ACKRF) (the "Company" or "American Creek") announces that it has agreed with Cunningham Mining Ltd. ("CML") to terminate the Arrangement Agreement between the parties dated September 5, 2024, as amended December 30, 2024 and January 31, 2025. In a termination agreement signed by the parties last night, the parties provided mutual releases to each other in relation to the Arrangement Agreement. In addition, CML agreed to pay the Company CAD$150,000 worth of NGTG$$ tokens, which tokens will be transferred to a wallet allocated to American Creek and released in 9 months.

The Company also announces that American Creek and CML/NGTG$$ have agreed to explore an alternate agreement/transaction between the parties that could have the potential to add significant value to shareholders through the alignment of the gold RWA token sector and the gold exploration sector. The Company will provide additional updates if and when material information becomes available.

About American Creek and the Treaty Creek Project

American Creek Resources Announces Receipt of Termination Notice Which It Deems Invalid

Cardston, Alberta--(Newsfile Corp. - February 18, 2025) - American Creek Resources Ltd. (TSXV: AMK) (OTCQB: ACKRF) (the "Company" or "American Creek") announces that it has received a Notice of Termination (the "Notice") of the Arrangement Agreement entered into with Cunningham Mining Ltd. (the "Purchaser") from the Purchaser. The Company's position is that the Notice is invalid.

Read more at:
https://us5.campaign-archive.com/?e=6f11d69fd1&u=af629dcbbf88a5932a7e484e3&id=c238c82c97

American Creek Resources Announces Further Amendment to Plan of Arrangement with Cunningham Mining

Cardston, Alberta--(Newsfile Corp. - February 3, 2025) - American Creek Resources Ltd. (TSXV: AMK) (OTCQB: ACKRF) (the "Company" or "American Creek") announces that it has entered into a second amendment agreement (the "Second Amendment Agreement") with Cunningham Mining Ltd. (the "Purchaser") to amend the previously announced arrangement agreement between the Purchaser and the Company dated September 5, 2024, as amended December 30, 2024 (the "Arrangement Agreement") pursuant to which, among other things, the Purchaser will acquire all of the issued and outstanding common shares of American Creek by way of a statutory plan of arrangement (the "Arrangement") under Division 5 of Part 9 of the Business Corporations Act (British Columbia).

Under the Second Amendment Agreement, the Outside Date (as defined in the Arrangement Agreement) has been extended from January 31, 2025 to March 15, 2025, provided the Purchaser pays the Company CAD$150,000 by February 20, 2025. Thereafter, the Outside Date may be further extended from March 15, 2025 to April 30, 2025, provided the Purchaser pays the Company an additional US$2,000,000 by March 15, 2025, which date may be accelerated in certain circumstances. A copy of the Second Amendment Agreement will be available on the Company's profile on SEDAR+ at www.sedarplus.ca.

The extension fees payable under the Second Amendment Agreement, similar to the $300,000 signing fee paid by the Purchaser under the Arrangement Agreement, will be used by the Company for expenses incurred in connection with the Arrangement and working capital purposes.


Read more at:
https://us5.campaign-archive.com/?e=6f11d69fd1&u=af629dcbbf88a5932a7e484e3&id=e4c0d2d550

Thanks for posting RT

Unless there has been a substantial change since my training the fuel rods are made up of a zirconium (zircaloy) tube filled with Uraniu oxide fuel pellets. Never heard of silver used. Possibly a lot of silver in the instrumentation.

Thanks to Malcy’s blog 1/16/25


Petro Matad

Petro Matad has provided the following update on production operations at the Heron-1 well in its Block XX Production Sharing Contract area in eastern Mongolia and on the signing of a new Production Sharing Contract.

Highlights

· Heron-1 continues to flow oil to surface without the need for pumping.

· Produced oil is being transported and stored in the neighbouring Block XIX TA-1 facilities and to date 15,750 barrels have been delivered.

· Negotiations on the Cooperation Agreement are complete and it is now awaiting signature.

· Petro Matad has signed a new Production Sharing Contract (PSC) in Mongolia.

Heron-1 production

Production of oil from Heron-1 continues with the well on natural flow without the need for pumping. Stable production of over 200 barrels of oil per day is being maintained. At higher rates, reservoir sands are produced along with the oil and the installation of sand screens offers a cheap solution to this and will be programmed for the spring if the well continues to perform in this way. Surface modifications are also being reviewed with a view to capturing and using the associated gas that is produced along with the oil. The current inventory of Block XX oil in the TA-1 facilities in Block XIX stands at 15,750 barrels.

The terms of the Cooperation Agreement have been agreed by the parties involved and it is now awaiting signature by the operator of Block XIX. This is expected in February after which sales revenue will commence.

Under the Cooperation Agreement and applying the very favourable fiscal terms of the Block XX Production Sharing Contract, after payment of processing costs and transportation, and after the government’s royalty and production share are deducted, Petro Matad will receive a net back of more than $40 per barrel based on a sales price of $70 per barrel. Block XX crude will be sold at the same price as Block XIX crude which is Daqing 33 minus $1/barrel. Daqing 33 is usually priced at a small discount to Brent, presently a 3.3% discount. At current oil prices the Block XX crude already in storage will generate revenue net to Petro Matad of circa $600,000.

Signing of Borzon Block VII, a new Production Sharing Contract in Mongolia

As previously reported, Petro Matad was selected as the contractor for two new exploration areas in Mongolia and the PSC for one of these, Borzon Block VII, has now been signed. The Company holds this acreage through its Isle of Man registered subsidiary Petro Matad Energy Ltd. which was established specifically for this purpose. Signing of the second PSC is awaiting Cabinet approval of the coordinates of a small, reserved area within the block.

The map below shows the location of Block VII.

Petro Matad Limited (AIM: MATD), the AIM quoted Mongolian oil company, provides the following update on production operations at the Heron-1 well in its Block XX Production Sharing Contract area in eastern Mongolia and on the signing of a new Production Sharing Contract.

Highlights

· Heron-1 continues to flow oil to surface without the need for pumping.

· Produced oil is being transported and stored in the neighbouring Block XIX TA-1 facilities and to date 15,750 barrels have been delivered.

· Negotiations on the Cooperation Agreement are complete and it is now awaiting signature.

· Petro Matad has signed a new Production Sharing Contract (PSC) in Mongolia.

Heron-1 production

Production of oil from Heron-1 continues with the well on natural flow without the need for pumping. Stable production of over 200 barrels of oil per day is being maintained. At higher rates, reservoir sands are produced along with the oil and the installation of sand screens offers a cheap solution to this and will be programmed for the spring if the well continues to perform in this way. Surface modifications are also being reviewed with a view to capturing and using the associated gas that is produced along with the oil. The current inventory of Block XX oil in the TA-1 facilities in Block XIX stands at 15,750 barrels.

The terms of the Cooperation Agreement have been agreed by the parties involved and it is now awaiting signature by the operator of Block XIX. This is expected in February after which sales revenue will commence.

Under the Cooperation Agreement and applying the very favourable fiscal terms of the Block XX Production Sharing Contract, after payment of processing costs and transportation, and after the government’s royalty and production share are deducted, Petro Matad will receive a net back of more than $40 per barrel based on a sales price of $70 per barrel. Block XX crude will be sold at the same price as Block XIX crude which is Daqing 33 minus $1/barrel. Daqing 33 is usually priced at a small discount to Brent, presently a 3.3% discount. At current oil prices the Block XX crude already in storage will generate revenue net to Petro Matad of circa $600,000.

Signing of Borzon Block VII, a new Production Sharing Contract in Mongolia

As previously reported, Petro Matad was selected as the contractor for two new exploration areas in Mongolia and the PSC for one of these, Borzon Block VII, has now been signed. The Company holds this acreage through its Isle of Man registered subsidiary Petro Matad Energy Ltd. which was established specifically for this purpose. Signing of the second PSC is awaiting Cabinet approval of the coordinates of a small, reserved area within the block.

The map below shows the location of Block VII.

Block VII comprises a very large area of some 41,141 square kilometres and is located in the south of Mongolia adjacent to the Yin’e and other basins across the border in northern China where oil and gas have been found in several plays. Importantly, in addition to the Jurassic/Cretaceous play already well known in Mongolia, oil has been found in older Triassic and Permian reservoirs that so far have not been explored in Mongolia. It is the extension of these oil prone basins into Block VII that make this block technically very attractive. Block VII has previously been lightly explored by other operators and has some 2D seismic coverage and limited well data. Geological outcrop information is plentiful.

Contractual and fiscal terms are very attractive compared to most other international jurisdictions. The financial commitment on Block VII is very low as Petro Matad has been able to incorporate into the eight-year exploration term a phasing of the work programme and the spend with the option to continue or relinquish in part or in full at the end of each phase. This keeps the commitment spend low until prospectivity is determined and further expenditure is then supported. In the first two-year phase on Block VII, the agreed work programme comprises field mapping and related studies designed to mature areas for future seismic acquisition and/or drilling at the Company’s discretion in the following phases of the exploration term. The commitment spend for the first two-year phase including all PSC fees is $980,000 and overall expenditure under the contract for the full eight-year exploration period is $14.9 million.

The attractive risk profile, cheap operating environment and very low financial commitment make this block a good candidate for farmout and Petro Matad is prioritising the search for partners in parallel with the low cost exploration activities in phase 1 of the work programme. In-house technical work on Block VII has already commenced ahead of field work planned in Q2 2025.

Mike Buck, CEO of Petro Matad, said:

“We are very pleased to see Heron-1 maintaining production and showing potential to increase its flow rate with some low cost modifications. It is also good to see a sizeable inventory of Block XX oil accumulating at TA-1 and we are pushing for sign off on the Cooperation Agreement to trigger the start of sales revenue.

The signing of Block VII adds some high quality exploration acreage to our portfolio. The reward potential and risk profile that Block VII offers are very attractive and we hope to be able to bring in partners to join us in exploring this exciting new area. We are also hopeful that the signing of our next new PSC will follow shortly and I look forward to updating shareholders”.

With Heron-1 producing around 200 barrels a day of oil which is now the peak, into tanks at TA-1 and which now totals 15,750 barrels delivered and which with the Cooperation agreement just needs to be signed for the oil to be sold.

There is scope for growth from MATD as the terms are attractive and the exploration opportunities exist and as CEO Mike Buck states, they are hoping to sign another PSC soon leading to further growth so albeit slow progress,. progress it is.