Mongolian Oil Exploration Co Upbeat on Drilling Prospects

BBC Monitoring via Comtex

Mongolia's oil exploring company Petro Matad Ltd announced yesterday that it remains confident about future oil drilling in Mongolia and said it plans to drill three wells in 2009.

In its announcement, Petro Matad said it is exploring numerous opportunities in Mongolia, including pursuing two production sharing contracts through its subsidiary, Central Asian Petroleum Corp Ltd.

Petro Matad Ltd is the parent company of a group focused on oil exploration, as well as future development and production in Mongolia. It is exploring in the east of Mongolia, with a production sharing contract on Matad Block XX, in which it is the sole contractor with the government of Mongolia.

Block XX is immediately south of the largest producing oilfield in Mongolia, in the Tamtsag Basin. The company is currently undertaking seismic surveys designed to define targets for a drilling programme commencing in 2009.

The company shares were admitted to trading on the AIM of the London Stock Exchange on May 1, 2008.

BBC Monitoring. Copyright BBC.