Mongolia-focused oil explorer Petro Matad said it found hydrocarbons at one of its wells in Eastern Mongolia, almost a year after it discovered oil at the first well it drilled in the region.
The explorer said initial analysis at its Davsan-Tolgoi-4 (DT-4) well pointed to an oil interval containing a minimum of 6 metres of net pay — the zone of a reservoir that contains economically producible oil.
Petro Matad said the deeper regions of the reservoir also exhibited the presence of hydrocarbons and further analysis was being carried out at the site.
Last month, the company restarted drilling at the DT-4 well, after it was shut down due to harsh winter conditions.
Last July, Petro Matad had said analysis carried out on the drilling results of its Davsan-Tolgoi-1 (DT-1) exploration well confirmed that oil was present.
The company’s DT-4 well is the fourth well of its drilling campaign. The rig will now be moved to drill its fifth well, Petro Matad said.
The explorer’s shares, which have risen 42 percent since the year began, were down 1.7 percent at 169 pence at 1241 GMT on the London Stock Exchange, with the oil and gas sector coming under pressure due to a fall in oil prices.