Petro Matad Completes Farm-out of Blocks IV and V in Central Mongolia
Petro Matad announced Monday that it has completed its farm-out of Blocks IV and V, located in Central Mongolia, to BG Group.
BG now holds a 78 percent working interest in the blocks, after paying Petro $2.75 million in cash. An additional $1.8 million cash consideration will be sent to Petro Matad over the next thirty months. The latest development follows Petro’s announcement June 11 that it had obtained approval for the farm-out of the blocks from the Mongolian government.
Petro Matad Acting Chairperson Dr. Oyungerel Janchiv commented in a company statement:
"I am very pleased to announce that the farm-out has attained unconditional status which means we will be able to proceed as planned with the proposed work program. The previously announced approval by the Mongolian Government is also very much appreciated and is another demonstration of the commitment to develop the country's oil and gas resources. As a result of this transaction Petro Matad will be fully funded in relation to the remaining license commitments on Blocks IV and V."
Petro Matad anticipates that two exploration wells will be drilled in the blocks in 2016. The tender for the exploration wells is expected to be issued during the third quarter of 2015. Further announcements will be made as major contracts are awarded, according to Petro.
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Company: Petro Matad Limited more info
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