Mongolia focused oil explorer Petro Matad (LON: MATD) confirmed that it has now spudded the Davsan Tolgoi-9 well on Block XX.
This latest well will target the Lower Tsagaantsav reservoir, which Petro Matad has found to be oil bearing in other parts of the block, around 2.5 kilometres south of the DT-4 that was drilled back in May. DT-9 was spudded yesterday and it is being drilled vertically to target depth of around 1,750 metres.
On Tuesday announced that the previous well, DT-8, had struck oil. The well penetrated 127 metres gross thickness of the Uppermost Tsagaantsav formation, from a depth of 1,670 metres. Within this formation, between 1,714 to 1,720 metres, the well encountered live oil shows. Petro Matad said that these shows consisted of ‘spotty fluorescence’ and ‘fast bluish-white’ to ‘yellow-gold’ cut, which indicates the presence of hydrocarbons.
Petro Matad also told investors on Tuesday that it has mobilised a work-over rig, and equipment, to Davsan Tolgoi. Well testing operations are planned to get underway this week. The programme is designed to sequentially test the six separate zones of Uppermost Tsagaantsav reservoir in DT-1.
Once the DT-1 well is complete the rig will move on to test the DT-2, DT-5, DT-7 and DT-8 wells have all been identified as production test candidates in the Uvgan Gol paleovalley reservoir. The DT-3 and DT-4 are slated for production testing of the Lower Tsagaantsav reservoir and the Upper Zuunbayan reservoir will be tested in DT-3.