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Highlights:
- Petro Matad reports 200 barrels of oil per day from Heron-1 well in Mongolia.
- A cooperation agreement for oil sales is expected to be finalized in February.
- The company expands its exploration activities with the signing of the Borzon Block VII.
Petro Matad Limited (OTC:PRTDF) operates in the oil and gas sector, focusing on exploration and production activities in Mongolia. The company is engaged in the extraction of oil from the Heron-1 well, located in Block XX, Eastern Mongolia. Production from this well plays a key role in the company’s operations, contributing to its overall output and growth in the sector.
Heron-1 Well's Production and Oil Sales Outlook
The Heron-1 well is producing approximately 200 barrels of oil per day, with a total of 15,750 barrels stored in facilities in the neighboring Block XIX. A cooperation agreement is in place and is expected to be finalized in February, enabling the commencement of oil sales. Once the agreement is signed, the company is set to begin receiving revenue from the stored oil. The agreement includes a net back of $40 per barrel for oil sold at $70 per barrel. The oil in storage is projected to generate around $600,000 in net revenue for the company once the sales process begins.
Expansion of Exploration Activities in Mongolia
Petro Matad has expanded its exploration activities with the signing of the Borzon Block VII, located in Southern Mongolia. The block covers an area of over 41,000 square kilometers, and the company has committed to early-stage exploration activities, including mapping work. A total budget of $980,000 has been allocated for the first two years of exploration. This expansion enhances the company’s portfolio, providing access to additional exploration acreage. The signing of Block VII adds value to the company's strategic position in Mongolia, further supporting its growth in the oil and gas sector.
Future Prospects and Developments
Petro Matad’s operations in both production and exploration are aimed at sustaining long-term growth within the oil sector. The Heron-1 well’s production, combined with the new exploration activities in Block VII, strengthen the company’s presence in Mongolia. Management continues to focus on the development of existing projects and the identification of further growth opportunities in the region.
