Petro Matad announced that it has spudded the DT-7 well on its promising petroleum exploration and development block in far eastern Mongolia. The DT-7 well is being drilled vertically to an estimated target depth of 1,800 metres by the company’s contractor, DQE International.
DT-7 is 2.3km south-southwest of DT-6 and 3.2km south-southeast of DT-2.A further announcement on DT-7 will be made once drilling is completed, or as appropriate, said the company.
The company holds the sole operatorship of three production sharing contracts (PSCs) with the government of Mongolia. Its principal asset is the PSC for Block XX, petroleum block of 10,340km² in the far eastern part of the country. The two other Blocks, IV and V are located in central Mongolia and jointly cover 71,040km².
Earlier this month the company attracted favorable comment from broker Westhouse, which cited Petro Matad’s increasingly successful exploration programme, strong and capable technical team and ‘exceptionally large’ prospective blocks as strong positives for the stock.
In their note on the company, the analysts concluded that more than anything, their recent visit to Mongolia impressed upon them the significant achievements the company has accomplished to date, operating as it does in a region where the oil and gas industry does not benefit from a mature service sector.
They added: “Petro Matad has set up the first self-contained, professional petroleum exploration team in a country that was more accustomed to fly-in/fly-out consultants and extremely limited local sectorial services.
However, rather than resting on its laurels, the company’s ambitions remain undiminished, as demonstrated by its full work schedule involving all facets of exploration and appraisal, from field studies right through to drilling and testing.” In late trading Petro Matad shares were down 0.5p to 106.5p.