AIM-listed Petro Matad is focused on oil exploration, development and production in Mongolia and we were delighted that Mike Buck, CEO could join us live at our recent London South East March webinar.
The Company is currently developing its Heron oil field discovery in the far East of Mongolia, the first part of which it plans to bring onstream in mid-2022, with production expected to rise to around 6,000bl/d by 2024.
“The money we raised in 2021 was enough to get us into production on Heron. The well is already there, it’s cased to the bottom, we did a drill stem test on it, what we need to do now is re-enter the well with work-over equipment, clean it out and do some stimulation (hydraulic fracking) of the reservoir, and then complete it for production. It takes a a couple of weeks to do this work. The contractor in Mongolia has done this 100’s of times before – the only concern is they have a very full order book and I’ve asked them to confirm a slot.”
Petro Matad is currently in advanced negotiations with operational service providers for its 2022 work programme, and hopes to be Mongolia’s ‘next production company’.
Mike took us through the low cost exploration potential of Block V and Velociraptor in the middle of the country, as well as the commercial potential of Heron. He said they would very much like to drill this exploration well (for $1.4M or less) and if they can’t do it this year they would like to do it next. The licence on this field is running out with only 19 months remaining, and they ‘will attempt to keep the clock stopped’ citing Covid and permitting delays.
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