Petro Matad Taps ISIS for Seismic Report of Mongolian Block

Petro Matad Limited has appointed Isis Petroleum Consultants Pty Ltd to prepare a Seismic Interpretation Report in 2008 on Strong Lead 6Ts and the immediate surrounding areas, located within Block XX, the petroleum block for which PML has a Production Sharing Contract with the Government of Mongolia. Block XX is located in the Tamtsag Basin, in the eastern part of Mongolia.

The objective of the Seismic Report was to interpret the parts of the 155km of new 2D seismic data acquired in 2008 (the "2008 2D Seismic Survey") and the reprocessing of 686km of existing pre-2000 seismic data ("2008 Reprocessing") that are present within the general area of 6Ts. Strong Lead 6Ts and the immediately adjacent areas were then reinterpreted and remapped utilizing the original seismic 2D data and the appropriate parts of the two new sources of seismic data.

ISIS has concluded that Strong Lead 6Ts did not mature to prospect status because the previously interpreted continuous faults necessary for the trapping mechanism broke up into smaller discontinuous segments.
Strong Lead 6Ts has now been mapped as a small fault bounded closure, re-designated Prospect 6Ts, with a Mean Risked Prospective Resource of 0.27 MMbbl. Prior to the interpretation of the 2008 2D Seismic Survey and 2008 Reprocessing, Strong Lead 6Ts was included in PML's inventory with a Mean Risked Prospective Resource of 11 MMbbl.

ISIS has reported that the structural nose to the southwest of Strong Lead 6Ts became more prominent and that a new exploration opportunity, Lead 15Ts, has been mapped. Lead 15Ts is a simple basement related anticlinal closure that requires additional seismic data to mature it to Prospect status. ISIS has reported that Lead 15Ts has a Mean Risked Prospective Resource of 1.8 MMbbl.

Following the completion of the interpretation of the 2008 2D seismic survey, the Mean Risked Prospective Resource of PML's total inventory has been reduced from 85 MMbbl to 76 MMbbl.

"The interpretation of the 2008 2D seismic data in the ISIS study has confirmed that the greater 6Ts area is prospective for oil exploration. The remainder of the 2008 2D program is being interpreted by Isis. In addition, the Company's 2008 3D seismic acquisition program over Prospect 8Ts is about to commence. The Company remains confident about the overall prospectivity of Block XX and our ongoing programs," commented CEO Douglas McGay.