Petro Matad (PRTDF)

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Petro Matad Limited: Wild Horse 1 Well Results and Operational Update

The Wild Horse 1 well will now be plugged and abandoned

26 November 2018

The Wild Horse 1 well, drilled in the Baatsagaan Basin within Petro Matad's 100% owned and operated Block IV, has reached total depth (TD) of 1,490 metres MD in granitic basement.

The Wild Horse 1 well will now be plugged and abandoned

In line with the pre-drill prognosis, the well encountered interbedded sands and shales throughout the prospective section from 650 metres to TD but no oil shows were observed.

The first objective drilled in the well comprised a c.250 metre thick sequence of porous sands and interbedded claystones. Background drilling gases from C1 to C4 were observed in this interval and are believed to be of thermogenic origin. The prospectivity of this interval within other trap geometries in the basin will be evaluated as a priority.

At the second objective only thin sands were developed within an overall claystone interval containing both carbonaceous material and thin coals which may be indicative of the presence of potential source rock material in the well.

The third objective was not present due to the shallower than prognosed penetration of basement. Basement had been prognosed at a depth below 2,000 metres at the well location based on interpretation of high-resolution gravity and magnetic data. Wild Horse 1 provides the first well tie to the seismic database in Block IV and the seismic will now be reinterpreted to better understand the basement and basin configurations.

Post-well analyses will focus initially on determining the ages of the formations drilled and the reservoir and source rock potential. Further work on the surrounding prospectivity in the Baatsagaan Basin will depend upon the source rock potential and maturity that can be determined from these analyses. Elsewhere in Block IV, a number of other basins have been evaluated and the information provided by Wild Horse 1, particularly in terms of the ages of the formations present and their correlation with the proven productive basins to the south in northern China will help determine the next steps in exploring the area.

The Wild Horse 1 well will now be plugged and abandoned and the post well evaluation will commence. The rig and crew have operated well through the onset of winter in Mongolia and the 2018 drilling programme in Blocks IV and V has been completed within budget. The Company's current cash balance is more than $25 million and so the Company is fully funded for the 2019 drilling programme.

Read more (if you really want to) at:
https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/MATD/13879407.html