Petro Matad: Drilling Commences at Davsan Tolgoi Well

Petro Matad announced that the Davsan Tolgoi-5 ("DT-5") exploration well was spudded at 13:15 Mongolian time (05:15hrs GMT) on May 19, 2011.

The DT-5 well is being drilled vertically to an estimated target depth of 2,020 meters. The well is being drilled by the Company's contractor, DQE International.

This well will test a portion of the recently identified Uvgan Gal paleovalley as well as part of the Lower Tsagaansav Formation. DT-5 is 3.1km north-northeast of DT-1 and 2.5km south of the 19-62 well on the adjacent Block XIX, operated by Daqing Oilfields.

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