Petro Matad, the Mongolia focused oil exploration company has secured approval from country's regulatory body (MRPAM) for an extension of the exploration period for the Block IV and V onshore blocks for two years each, until 29th July 2019.
A further two-year extension is provided for in the PSCs, which the Company will be eligible to apply for in early 2019. Detailed analysis and pre-drill work conducted by the Company has documented the significant exploration potential of Blocks IV and V with multiple leads and prospects.
The Company has matured a series of prospects for exploration drilling, having secured a drilling rig from Sinopec Mongolia LLC and the first well is due to spud in Q3 2017. The Company will be providing further details on targets and prospectivity at that time.
Excluding the cost of the first well to be drilled in 2017 (which will count against the first term Block V PSC commitment ending on 29 July 2017), the financial commitments agreed with MRPAM to be undertaken in the extended period totals $7 million. The Company's planned work programmes will satisfy these commitments.
These PSC extensions will enable the Company to execute its planned work programme for 2017, which includes the drilling of two wells and the acquisition of 3D seismic. Further details on the specifics of the work programme will be the subject of subsequent announcements.