PML has completed the interpretation of its 145 km2, 3D seismic survey in the north eastern part of Block XX (the "2008 3D Seismic Survey"). The 2008 3D Seismic Survey was undertaken to further mature the Company's most advanced Prospect, 8Ts, to drillable status. The Prospect is to be re-named Davsan Tolgoi which is the local Mongolian nomenclature for the general area of 8Ts.
The 2008 3D Seismic Survey was acquired during the second and third quarters of 2008. The Company engaged independent consultants, Isis Petroleum Consultants Pty Ltd ("ISIS"), to undertake the interpretation and to integrate the 3D seismic interpretation with appropriate portions of the Company's existing 2D seismic database.
ISIS reported that the 2008 3D seismic data quality is of very good quality and has greatly improved fault definition. Previous 2D data had been acquired using a dynamite source and the 2008 3D data was acquired using a vibroseis source. A good character tie was established between the 2D and 3D data. The overall structural configuration shows great improvement over the structural interpretation based on the 2D seismic data set. The understanding of the reservoir presence, trap integrity, migration pathways and sealing potential over the prospective area has been greatly enhanced by the acquisition of the 3D seismic data set.
ISIS has concluded that the 3D data has increased the mean STOIIP for the Greater Davsan Tolgoi Prospect by 57% to a mean value of approximately 500 MMbbl of oil and that the 3D data has improved the geological probability of success for Davsan Tolgoi by 15% to at least 38%. In addition, two further prospects outside of the Greater Davsan Tolgoi Prospect were identified. Those two prospects (Davsan Tolgoi West and Davsan Tolgoi North) have a mean STOIIP totalling 105MMbbl of oil.
ISIS has determined that the cumulative mean risked prospective resources potential of Greater Davsan Tolgoi, together with Davsan Tolgoi West and Davsan Tolgoi North has increased from 19 MMbbl to 58 MMbbl.
Following the completion of the 2008 3D Seismic Survey, the mean risked prospective resource of PML's total inventory of all Leads and Prospects in Block XX has been increased from 83 MMbbl to 123 MMbbl.
The Company is now working with its advisers to identify drilling targets within its Davsan Tolgoi Prospect and is also examining work programs to further the exploration in other prospective areas previously identified in Block XX.
CEO Douglas McGay commented, "We are very pleased with the results of the 3D seismic work on Davsan Tolgoi. They provide further validation of our faith in the prospectivity of Block XX, particularly when read in conjunction with the 2008 2D survey results (released in October 2008). These reports have provided Petro Matad with a clear path forward in its exploration program."
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