Drilling Recommenced at Petro Matad's Davsan Tolgoi Well

Petro Matad announced that drilling operations at the Company's Davsan Tolgoi-4 well ("DT-4") have recommenced following the winter shut down.

In early December 2010 the Company suspended the drilling of the DT-4 at a depth of 1,271 meters and an orderly shutdown and hibernation was successfully carried out. In the last few weeks the Company and its drilling contractor, DQE International, have been undertaking preparatory work including the reinstatement of the drilling team and operational camp.

As previously announced the rig remained on-site throughout the winter months, it has now been re-commissioned, serviced and tested and is currently working on cleaning out the hole ahead of further drilling. Night time temperatures are still below zero, but 24 hour operations are anticipated to commence tomorrow and drilling towards the target depth of 2,020 meters is scheduled to recommence over the weekend.


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