Petro Matad (PRTDF)

[douginil]

Petro Matad

July 7, 2021

[[ Thanks to Malcy's Blog ]]


Mongolia’s Minister of Mining and Heavy Industry has approved the award of the Block XX Exploitation Licence to Petro Matad. Under the Mongolian Petroleum Law and the Block XX Production Sharing Contract, the Exploitation Licence runs for 25 years with the option to extend for two periods of five years each.

As expected the approved Plan of Development will concentrate initially on the proven reserves area around Heron 1, expanding in phases to target the estimated 194 million barrels of total in place resource potential. The agreed Exploitation Area totals 218km2 which includes the entire extension into Block XX of the proven and producing Toson Uul Basin.

The Company will now resume discussions with potential farm-in partners and review funding options to complete the next stage of activity which by the nature of the area will mean that the Company is now focused on preparing for a very active programme in 2022 including the start-up of oil production from the Heron discovery using spare capacity in adjacent infrastructure.

Mike Buck, CEO of Petro Matad, said:

“Securing the Block XX Exploitation Licence has been a lengthy process but Petro Matad very much appreciates the patient and professional way in which the government has dealt with the matter. We are delighted and honoured to have been awarded what is only the third such licence ever granted in Mongolia. The pandemic has been difficult for Petro Matad as it has for everybody and although the Company still has some important preparations to complete, we are looking forward to an extremely active 2022 with the primary goal of generating revenue from early production at Heron as soon as possible.

Petro Matad shares have been running in advance of this ruling which is understandable, providing that they can get partnered up and some moulah on board they now have a potentially huge area in Block XX to get their teeth into. With Covid and detailed negotiations with the Government keeping management busy I really hope that before long Mike Buck dusts off his passport and heads East when we can have a chat.

Read at:
https://www.malcysblog.com/2021/07/oil-price-petro-matad-coro-hurricane-block-scirocco-getech-and-finally/