LONDON (ShareCast) - (Sharecast News) - Mongolia-focussed oil explorer Petro Matad updated the market on its progress towards its planned drilling programme in 2019, and its application for PSC extensions for Blocks IV and V on Wednesday.
The AIM-traded firm said drill sites for the three Block XX wells - Heron 1, Red Deer 1 and Gazelle 1 - had been completed, with water supply wells now ready.

It said rig mobilisation notices had been issued to both drilling contractors, and customs clearance for their equipment and supplies had been obtained.

The company said it was on track to spud the Heron 1 during July using DQE's rig 40105, with the Gazelle 1 well to follow immediately after Heron 1 operations, allowing for a short rig move.

Red Deer 1 was expected to spud before the end of July, using Daton's rig DXZ1.

Applications for extensions to the Blocks IV and V production sharing contracts (PSC), submitted in mid-April, had received support from the working group at the Mineral Resources and Petroleum Authority of Mongolia (MRPAM), Petro Matad's board reported.

It said the Velociraptor Prospect had been chosen as the next drilling target in Block V, with permitting said to be progressing.

"We are looking forward to starting our 2019 drilling operations after considerable effort to secure all the necessary permits and to complete preparations," said Petro Matad chief executive officer Mike Buck.

"The real work starts now and the next few months will certainly be a very exciting time for the company."

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