THE INFORMATION CONTAINED WITHIN
THIS ANNOUNCEMENT IS DEEMED BY PETRO MATAD LIMITED TO CONSTITUTE
INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET
ABUSE REGULATION (EU) NO. 596/2014 AS IT FORMS PART OF UNITED
KINGDOM DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL)
ACT 2018 ("UK MAR"). ON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A
REGULATORY INFORMATION SERVICE ("RIS"), THIS INSIDE INFORMATION IS
NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
22 October 2024
Petro
Matad Limited
("Petro
Matad" or the "Company")
Planned
production startup at Heron-1
Petro Matad Limited (AIM: MATD), the
AIM quoted Mongolian oil company, provides the following update on
the planned start of oil production in its Block XX Production
Sharing Contract area in eastern Mongolia.
Highlights
·
Construction and equipment installation activities
at the Heron-1 well pad have been completed and commissioning of
the site is ongoing. Start of production from the well is planned
on or before 25 October 2024.
·
The Company will host a delegation headed by the
Ministry of Industry and Mineral Resources for a production startup
ceremony at site on 25 October.
·
The Cooperation Agreement with PetroChina Daqing
Tamsag for use of the Block XIX production facilities and export
infrastructure is in near final form.
Heron-1 production startup
Site construction and equipment
installation activities on the Heron-1 well pad have been
completed. The beam pump, generator and storage tanks are now being
commissioned and will be ready for production startup on or before
25 October 2024. Petro Matad's in-field operations team is at site
and all logistical preparations are being made to be ready to start
the transportation of produced fluids to PetroChina's facilities
some 20 km to the north in Block XIX.
The Company will be honoured to host
a delegation headed by the Ministry of Industry and Mineral
Resources at a startup ceremony at the well site on 25 October. The
delegation will include senior representatives of the Ministry,
senior officials of industry regulator the Mineral Resources and
Petroleum Authority of Mongolia (MRPAM), and invitees also include
the Provincial and District Governors and their respective senior
officials as well as representatives of PetroChina.
The Cooperation Agreement with
neighbouring operator, PetroChina Daqing Tamsag, is in near final
form. It includes provision for the offloading, measurement,
processing, export and sale of the Block XX production. All fees to
be levied are in line with expectations and the only item remaining
to be agreed is the administration fee to be paid to PetroChina.
Whilst PetroChina has advised that it will likely take some time
for the agreement to be signed by its Headquarters, Petro Matad,
PetroChina and MRPAM have all agreed to get Block XX production
operations started ahead of the operational winter shut down in
late November. Production, processing and export activities
continue through the winter months, so it is important to get these
started in advance.
Mike Buck, CEO of Petro Matad,
said:
"We have waited a long time to get
the Heron-1 well into production and we are pleased to have reached
this important milestone. We very much appreciate the support of
the Ministry and MRPAM and the cooperation that PetroChina is
providing. We are also very grateful for the hard work and
enthusiasm of our dedicated team and for the patience and continued
support of our shareholders."
Further operational updates will be
provided in due course.
- Ends
-
For
further information please contact:
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Petro Matad Limited
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Mike Buck, CEO
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+976 7014 1099 / +976 7575
1099
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Shore Capital (Nominated Adviser and Joint
Broker)
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Toby Gibbs
Rachel
Goldstein
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+44 (0) 20 7408 4090
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Zeus Capital Limited (Joint
Broker)
Simon Johnson
Louisa Waddell
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+44 (0) 20 3829 5000
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FTI
Consulting (Communications Advisory Firm)
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Ben Brewerton
Christopher Laing
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+44 (0) 20 3727 1000
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About Petro Matad
Petro Matad is the parent company of
a group focused on oil exploration, development and production in
Mongolia. Currently, Petro Matad holds a 100% working interest and
the operatorship of the Matad Block XX Production Sharing Contract
with the government of Mongolia. Block XX has an area of 214 square
kilometres in the far eastern part of the country.
Petro Matad Limited is incorporated
in the Isle of Man under company number 1483V. Its registered
office is at Victory House, Prospect Hill, Douglas, Isle of Man,
IM1 1EQ.