Petro Matad Limited Block IV and V PSC Extensions (1581I)

TIDMMATD

RNS Number : 1581I

Petro Matad Limited

15 June 2017

15 June 2017

Petro Matad Limited

("Petro Matad" or the "Company")

Block IV and V PSC Extensions

Petro Matad, the Mongolia focussed oil exploration and future development and production company is pleased to advise that the Mongolian regulatory body ("MRPAM") has formally approved an extension of the exploration period for the Block IV and V Production Sharing Contracts, for 2 years each, until 29(th) July 2019. A further two-year extension is provided for in the PSCs, which the Company will be eligible to apply for in early 2019. Detailed analysis and pre-drill work conducted by the Company has documented the significant exploration potential of Blocks IV and V with multiple leads and prospects. The Company has matured a series of prospects for exploration drilling, having secured a drilling rig from Sinopec Mongolia LLC and the first well is due to spud in Q3 2017. The Company will be providing further details on targets and prospectivity at that time.

Excluding the cost of the first well to be drilled in 2017 (which will count against the first term Block V PSC commitment ending on 29 July 2017), the financial commitments agreed with MRPAM to be undertaken in the extended period totals $7 million. The Company's planned work programmes will satisfy these commitments.

These PSC extensions will enable the Company to execute its planned work programme for 2017, which includes the drilling of two wells and the acquisition of 3D seismic. Further details on the specifics of the work programme will be the subject of subsequent announcements.

About Petro Matad

Petro Matad is the parent company of a group focussed on oil exploration, as well as future development and production in Mongolia. At the current time, Petro Matad holds the sole operatorship of three Production Sharing Contracts with the Government of Mongolia. Block XX has an area of 10,340 km(2) in the far eastern part of the country, and Blocks IV and V have an area of 28,900 km2 and 21,100 km2, respectively, in the southwest part of the country.

Petro Matad Limited is incorporated in the Isle of Man under company number 1483V. Its registered office is at Victory House, Prospect Hill, Douglas, Isle of Man, IM1 1EQ.

For more information, please contact:

 
 Petro Matad Limited 
                                  [phone] / +97 
 Ridvan Karpuz, CEO                675 751 099 
 NOMAD and Broker 
  Stockdale Securities Limited 
 Richard Johnson / David 
  Coaten                          [phone] 
 

Business Advisory Firm

FTI Consulting

Edward Westropp [phone] / [phone]

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCLIFIRRDIELID

(END) Dow Jones Newswires

June 15, 2017 02:08 ET (06:08 GMT)