Petro Matad has signed a letter of intent (LoI) with China National Petroleum Company’s subsidiary BGP to commence a comprehensive 3D seismic programme in Mongolia’s Tugrug Basin later this month.
The programme covers 218km² in Block V and will include an additional 2D seismic survey focused on adjacent leads and in a new basin in Block IV in an attempt to add further drillable prospects to the company’s exploration portfolio.
The company aims to unlock more than three billion barrels of oil in place and additional potential within stratigraphic traps through the 3D survey, which is expected to define and de-risk near term drilling targets within the Tugrug Basin.
In 2011, the company drilled a stratigraphic core hole near the basin margin, confirming a working petroleum system within the Tugrug Basin.
According to the company, the core-hole contained live, un-biodegraded oil in sandstone reservoirs.
The 3D survey will focus on the key prospects and leads, which were identified on existing 2D seismic data and form part of the primary structural play fairway within the basin.
In addition, the survey is expected to image a major stratigraphic play fairway.
The 2D survey will cover 150km in the Tugrug Basin and 204km of new 2D data over the Khangai Basin in the northern part of Block IV.
It is aimed at improving leads identified on regional 2D seismic gravity and magnetic surveys acquired in 2015.
In June this year, Petro Matad secured an extension of the exploration period for the Block IV and V production sharing contracts until 2019, with the option for further extension by two years.