Petro Matad to conduct new exploration campaign in Mongolia

Petro Matad is planning to commence its new drilling programme in Mongolia in the second quarter of this year.

The company will use its recently completed $16.8m in fundraising to fund the drilling campaign related to four wells.

The first well, known as Wild Horse-1, is located in Block IV in the Baatsagaan Basin and set to be drilled and logged in around 30-45 days at a cost of around $4m.

With a planned total depth (TD) of 1,850m, the well is targeting to unlock prospective recoverable resources of 290 million barrels of oil (mmbo).

A successful campaign will help the company to de-risk upside potential of around 750mmbo identified in 13 further prospects and leads in the same basin.

Petro Matad CEO Mike Buck said: “This is a very exciting time for Petro Matad as we head into one of the highest impact drilling campaigns any independent has undertaken in Mongolia.

“We are now deep into the preparation phase to spud our first well at Wild Horse-1 in Q2 2018. We are pleased to see that rig availability for our planned drilling in Block XX looks good.”

The company is working on obtaining approvals required to commence the drilling campaign.

A Sinopec rig has been contracted by the company to drill the Wild Horse-1.

Once the drilling work is completed, the rig will be moved to drill the Falcon prospect in Block V.

Petro Matad is also focused on securing a rig to drill the two-well programme in Block XX in the second half of this year.