Petro Matad seeks Mongolian Block XX exploitation license

Petro Matad Ltd. is continuing work to secure the Block XX exploitation license required under the Production Sharing Contract (PSC) to enter the development phase following results of its 2019 drilling campaign. The company discovered oil in Gazelle 1 and Heron 1 wells, with Heron 1 delivering one of the highest flow rates recorded in Mongolia.

The Heron structure has mean, unrisked in-place oil resource potential of 194 million bbl based on a Competent Persons Report (CPR) by Leap Energy.

Fenix Consulting Delft, a specialist in reservoir stimulation, modelled Heron 1 test data to assess the production and recovery potential of the Tsagaantsav oil sands and concluded that modern stimulation techniques and reservoir pressure support from produced water re-injection can significantly improve oil recovery from levels achieved to date in neighboring blocks. Well productivity could improve with slanted or horizontal drilling to increase reservoir contact and radial drilling to enhance wellbore drainage.

The work conducted by Fenix combined with the resource numbers from the CPR support the base case of a mean recoverable reserve of 33 million bbl using a recovery factor of 17%.

Block IV PSC has been proposed to be relinquished following post well studies on Wild Horse 1 and recognizing the short time remaining without any clearly defined, high-graded drillable targets.

On Block V, Velociraptor, Fox, and Phoenix high impact prospects have matured to drillable status in the Taats and Tugrug basins where active petroleum systems are present. The company has proposed a moratorium on the Block V PSC to give more time to secure partners and/or funding for the next phase of exploration. The moratorium application is currently under discussion and will be updated in due course.