Petro Matad Limited (“Petro Matad” or “the Company”), the AIM quoted Mongolian oil explorer, announces its audited final results for the year ended 31 December 2018. All dollar values are expressed in United States dollars unless otherwise stated.
· Drilled two frontier exploration wells, Snow Leopard 1 and Wild Horse 1, in the previously undrilled Valley of the Lakes in central western Mongolia. Operations were completed within the 2018 drilling season and within budget
· Snow Leopard 1 in Block V proved up a working petroleum system in the Taats Basin, high grading nearby prospects as potential follow-up targets for future drilling
· Secured access to 3D seismic data in northern Block XX, completed 2D seismic reprocessing and remapped the prospects close to producing fields in neighbouring Block XIX
· Selected Block XX targets for the 2019 drilling campaign including the Heron 1 well which will appraise a structure already proven to be oil bearing on Block XIX immediately to the north
Post period end
· Contracted two rigs to execute the 2019 drilling campaign. Contracts allow the rigs to be retained for immediate appraisal of any discoveries made
· Three wells will be drilled in Block XX in 2019: Heron 1 and Red Deer 1 are expected to spud in July. Gazelle 1 will follow the drilling of Heron 1. Site construction is now complete at Heron and Gazelle, and is underway at Red Deer
· A fourth well is planned to be drilled in Block V or Block XX, depending on well results
· Applications submitted for two-year PSC extensions (until July 2021) on Block IV and Block V
· Two successful equity placings announced in January 2018 and June 2018, raising gross proceeds of $35.1 million to execute the Company’s multi-well drilling programme in 2018 and 2019
· The Group’s net loss after tax for the twelve months ended 31 December 2018 was $18.4 million (31 December 2017: loss $9.9 million)
· As at 31 December 2018, the Group’s cash position was $21.3 million, including Term Deposits (Financial Assets) (31 December 2017: $8.1 million)
· Since the year end, preparations for the 2019 drilling programme have been underway. As at 14 June 2019, the Group’s cash position was $16.6 million, including Terms Deposits (Financial Assets)
No dividends have been paid or are proposed in respect of the year ended 31 December 2018 (2017: Nil).
About Petro Matad
Petro Matad is the parent company of a group focussed on oil exploration, as well as future development and production in Mongolia. At the current time, Petro Matad holds 100% working interest and the operatorship of three Production Sharing Contracts with the Government of Mongolia. Block XX has an area of 10,367 square kilometres in the far eastern part of the country, and Blocks IV and V have an area of 29,062 square kilometres and 21,143 square kilometres, respectively, in the central western 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.