Petro Matad (PRTDF)

[douginil]

Petro Matad Limited (AIM: MATD), the AIM-quoted Mongolian oil explorer, is pleased to announce that it has signed contracts for two rigs for its upcoming 2019 four well drilling programme.

16 April 2019 via Twitter

Highlights:

· Four well fully-funded programme remains on track for completion in 2019

· Two rig contracts signed and both rigs in close proximity to Block XX

· Heron 1 and Red Deer 1 wells expected to spud in July

· Spudding of Gazelle 1 will follow completion of drilling at Heron 1

· Rig contracts allow for possibility of immediate appraisal of any discovery

Rig contracts signed

The Company has contracted DQE International, Mongolia's most experienced and active drilling operator, for its Rig 40105, to drill the Heron 1 and Gazelle 1 wells in the north of Block XX. The contract gives the Company the option to drill an additional well to allow for immediate appraisal of any discovery made during the 2019 drilling programme. Any discovery will be tested using a separate workover rig. The rig was drilling in neighbouring Block XIX up until the end of the last drilling season, so mobilisation will be short and logistically straightforward.

The second contract is with Daton Petroleum Engineering and Oilfield Service LLC, for their Rig DXZ1, to drill the Red Deer 1 well in the south of Block XX. The contract gives Petro Matad the option to drill a second well, to either appraise any discovery made in Red Deer 1 or for drilling in Block V in western Mongolia. Any testing operations will be performed by a separate workover rig. Daton's rig was working until the end of 2018 and is currently located approximately 125km east of the Red Deer location, so mobilisation to Block XX will be relatively short.



Read more at:
https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/MATD/14042005.html