LONDON, 7 September 2018: Petro Matad Limited, the AIM quoted Mongolian oil explorer, is pleased to announce its unaudited interim results for the six months ended 30 June 2018.
The Group posted a loss of $6.65 million for the six-month period ended 30 June 2018, which compares to a loss of $2.52 million for the comparable period in 2017. The Company’s cash balance at 30 June 2018 was $12.54 million, which compares to a cash balance of $10.92 million on 30 June 2017. The cash position as of 30 June 2018 was substantially increased by the net fund raise of $15.98 million announced on 19 January 2018.
The Company’s cash position was further enhanced by the net $17.12 million fund raise announced on 13 June 2018. Following approval at the EGM of 3 July 2018, the cash was received on 6 July 2018. As of today, the Company’s cash balance plus term deposits stands at $29.73 million, which fully funds planned activities (including drilling of six wells) through to the end of 2019.
The Snow Leopard 1 exploration well, located in the Taats Basin of Block V, was spudded on 9 July 2018 and drilling operations are ongoing. The prospect has estimated prospective resource potential of 90 million barrels of oil and the Company will announce the well results once drilling and logging is complete, later this month. Once the rig completes operations at the Snow Leopard site it will mobilise to Block IV for drilling of the Wild Horse 1 well some 300 kilometres to the west.
As previously disclosed, the Wild Horse 1 well, which is targeting prospective resources of 480 million barrels of oil, has been named by industry specialists Wood Mackenzie as one of the top 20 exploration wells worldwide to watch in 2018. Representatives of the Company’s community relations team are in Block IV preparing for the arrival of the rig.
Permitting for the drilling location on the Fox prospect in Block V, planned to spud in Q2 2019, is progressing well.
The Company’s plans for drilling in Block XX in 2018 have experienced some regulatory delays, all of which have now been overcome. However, following extensive negotiations, the Company has been unable to reach agreement with the rig contractor that won the tender due to late stage changes to the contractor’s proposed equipment and contracting entity. As a result, the decision has now been taken to postpone Block XX drilling until the start of the 2019 drilling season in Q2 2019.
The Company will, over the next few months and through the winter season, re-tender for drilling services. Additionally, the Company will use the time to reprocess existing seismic data over the high-graded Heron and Antelope prospects in the North of Block XX to improve their structural imaging in order to help determine which prospect to target and to optimize the drilling location. Environmental permits covering the entirety of both prospects have already been approved, as is the case for Gazelle.
Mike Buck, Chief Executive Officer of Petro Matad said:
“Operations at Snow Leopard 1 in Block V are progressing and we look forward to updating the market once the drilling has been completed. Similarly, preparations at Block IV are on track for the Wild Horse 1 well.
The delay to Block XX 2018 drilling is disappointing after the extensive efforts the Company has put in to be able to resume operations in the area. However, the delay does offer the chance to exploit logistical, operational and financial synergies to drill the three planned Block XX wells back to back during the 2019 drilling season“.
Further operational updates will be provided in due course.