Petro Matad Updates on Blocks IV, V Exploration Program in Mongolia

Petro Matad Ltd. gave an update Friday on its operations in Blocks IV and V in Mongolia, with the firm tapping on exit payments provided by Shell's affiliate company BG Mongolian Holdings Ltd. (BGMH) to finance its exploration programs in the 2 onshore blocks.

The company has processed 2D seismic acquisitions from Block IV and the data is now being interpreted. Petro Matad has been encouraged by results so far and it has identified a series of leads, with the firm confident that a number of drill-ready prospects will emerge.

Meantime, Petro Matad has acquired 152 mile (245 kilometer) of the 250 mile (402 kilometer) 2D seismic acquisition program. The seismic program was suspended in early July due to dynamite quality issues, with the seismic contractor now acquiring new dynamite charges for the survey to continue during September and October. The remainder of the seismic program seeks to de-risk leads and define a potential drill location in Block V. Processing of data acquired to date is underway and interpretation and prospect generation is progressing.

"The leads inventory of both Blocks IV and V will be peer reviewed and qualified prospects will be high-graded to drill-ready status prior to exploration drilling, expected in mid-2017," the firm said in the release.

Petro Matad said well engineering and preparation of the rig tender documentation are in process and it expects to issue its drilling tender before the end of 2016.