Petro Matad inks drilling contract with Sinopec in Mongolia


LONDON -- Petro Matad, the AIM quoted Mongolian oil explorer announces that further to the press release on May 31, 2017, a comprehensive drilling contract has now been signed with Sinopec International Petroleum Service Mongolia Co. Ltd. (Sinopec) and that the initial drilling targets have been selected.

2017 exploration drilling program

The first exploration well will be located on the Irves (Snow Leopard) prospect in the Taats basin of Block V and will spud in September 2017. The well will be drilled to a total depth of 3150 m and have an expected duration of 50 days. The Irves prospect comprises a series of tilted fault blocks, with multiple stacked reservoir targets, and has an estimated potential of 160 MMbbl of oil-in-place (mean-case) and an upside of 350 MMbbl of oil-in-place.

Irves-1 is an important 'basin and play opening' well. It will be the first deep exploration well drilled in Central Mongolia to test the hydrocarbon potential of the highly prolific Early Cretaceous 'syn-rift' play already proven in neighboring Chinese and eastern Mongolian basins. Success at Irves-1 would open the Taats basin for further exploration and potentially access over 1.8 Bbbl of oil-in-place (mid-case estimate).

Once the Irves-1 well has been completed, the rig will mobilize to the second well location, which is the Takhi (Wild Horse) prospect within the Baatsagaan basin of Block IV. Takhi-1 will be a shallower exploration well, with a TD of 1850 m and an expected duration of approximately 20 days. The Takhi prospect comprises a large faulted anticline with several stacked reservoir objectives. The well is designed to target 280 MMbbl of oil-in-place (mean-case), and has an upside case exceeding 650 MMbbl of oil-in-place. Success at Takhi-1 would likewise, open the Baatsagaan basin for further exploration and potentially access over 1.2 Bbbl oil-in-place (mid-case estimate).

For both the Irves and Takhi prospects there is significant stratigraphic upside potential, which is not included in the prospect volumes stated above. More details on the drilling targets will be provided nearer the commencement of drilling operations.

The Taats and Baatsagaan basins are just two basins out of a total of 12 basins that the Company has identified within Blocks IV and V. Petro Matad has so far mapped over 65 structural prospects and leads across these basins and based on these alone the 12 basins have the potential to contain over 20 Bbbl of oil-in-place. These basins may also offer significant upside potential from stratigraphic traps and unconventional oil plays. All volumes are the Company's internal estimates.

Further announcements will be made on progress leading up to the spud of the first well.

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