Operational Update: Velociraptor-1 well results

Petro Matad Limited
10 July 2023
 

 

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10 July 2023

Petro Matad Limited

("Petro Matad" or the "Company")

 

Operational Update: Velociraptor-1 well results

 

 

Result of the Velociraptor-1 Exploration Well

 

Petro Matad Limited (AIM:MATD), the AIM quoted Mongolian oil company, announces that the Velociraptor-1 exploration well in the Taats Basin of Block V located in central Mongolia reached a total depth (TD) of 1500m and wireline logging has been completed but unfortunately all the reservoirs encountered were water bearing.

 

The well came in close to prognosis at all levels. The primary objective Late Jurassic/Early Cretaceous Undur Formation was encountered at 1170m and had good quality reservoir sands interbedded with shales over a c. 200m interval. In the secondary objective Early Cretaceous Shinehudag Formation, three thick sand units were drilled with average porosity of around 18%. Good quality electric wireline logs confirmed both objectives to be water wet.

 

The well will now be plugged and abandoned and the rig will be demobilised. Operations were carried out on time and as budgeted with the full support and cooperation of the local community. The well results will now be incorporated into the Company's interpretation of Block V before any further operational activity is undertaken in the area.

 

Mike Buck, CEO of Petro Matad, said:

 

"The results of the Velociraptor 1 well are obviously disappointing but such high impact targets, drillable at modest well cost cannot be ignored when exploring frontier areas. The well provides a valuable new data point to help unlock the hydrocarbon potential of the southern Gobi. We will now incorporate the well results into our overall evaluation of the area. Meanwhile our operational focus shifts back to Block XX where the Heron development offers near term oil production and revenue generation and where low risk, near field exploration opportunities have already been identified which provide exciting upside potential."

 

Further operational updates will be provided in due course.

 

- Ends -

Further information please contact:

Petro Matad Limited

 

 

 

 

Mike Buck, CEO

+976 7014 1099 / +976 7575 1099

 

 

 

Shore Capital (Nominated Adviser and Joint Broker)

 

 

Toby Gibbs

Rachel Goldstein

+44 (0) 20 7408 4090

 

 

 

Zeus Capital Limited (Joint Broker)

Simon Johnson

Louisa Waddell

                             

 

+44 (0) 20 3829 5000

 

 

 

FTI Consulting (Communications Advisory Firm)

 

 

 

 

Ben Brewerton

Christopher Laing

+44 (0) 20 3727 1000

 

 

 

Technical information in this news release has been reviewed by the Company's Technical Manager, Mr. Jerry Smart. He has over 40 years of industry experience in oil and gas exploration and production with LASMO, Eni, Salamander Energy and Ophir Energy. He holds a B.Sc. in Geology from King's College, London.

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 100% working interest and the operatorship of two Production Sharing Contracts with the Government of Mongolia. Block XX has an area of 214 square kilometres in the far eastern part of the country and Block V has an area of 7,937 square kilometres in the central western 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.

 

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