Petro Matad Spuds Davsan Tolgoi-7

Petro Matad announced that the Davsan Tolgoi-7 ("DT-7") exploration well was spudded at 12:30 Mongolian time (5.30 a.m. BST) on June 27, 2011.

The DT-7 well is being drilled vertically to an estimated target depth of 1,800 meters. The well is being drilled by the Company's contractor, DQE International.

This well will test a portion of the Uvgan Gal paleovalley as well as part of the Lower Tsagaansav Formation. DT-7 is 2.3km south-southwest of DT-6 and 3.2km south-southeast of DT-2. The well will test the Davsan Tolgoi Mod Prospect with dual objectives in the Uppermost Tsagaantsav paleovalley system and the Lower Tsagaantsav sandstones.

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