Petro Matad
Limited
('Petro Matad' or the
'Company' or the 'Group')
Operational
Update
LONDON, 29 May 2024: Petro Matad
Limited, the AIM quoted Mongolian oil company provides the
following operational update.
Key
Company Updates
·
The Company has received the remaining approvals
necessary from Matad District to allow the 2024 operational
programme to commence. Land use certificates have been issued for
the three areas of operation selected by the Company.
·
Discussions on timing of mobilisation to re-enter
and complete the Heron 1 well for production are ongoing with
service provider DQE.
·
Petro Matad continues to push the central
government to complete the certification process and confirm Block
XX as State Special Purpose land to streamline the permitting
process in future years. MRPAM has written to the Provincial
authorities telling them to revise the coordinates of the area
which overlaps with Petro Matad's Exploitation Licence.
·
The Company's renewable energy joint venture is
progressing its two high-graded projects and has a number of new
opportunities including a potential export to China
initiative.
Operational Update
Block XX land access and Heron 1
completion
Following the approval of land
access from the Matad Citizens' Representatives Committee in late
February, the Company has now secured the Matad Governor's follow
up resolution and the land use agreement for the three areas chosen
for operations in 2024. The land access granted is valid for five
years, and this local level approval allows work to go ahead whilst
the central government's process to certify the Block XX
Exploitation Area as State Special Purpose Land is
completed.
As part of the local level approval,
with the support of the Land Agency and industry regulator the
Mineral Resources and Petroleum Authority of Mongolia (MRPAM),
Petro Matad paid compensation to the herders whose registered
pastures will be impacted by the Block XX Exploitation
Area.
With the local land use approval in
place, Petro Matad is in discussion with service provider DQE to
agree the timing of mobilisation of the completion crew to Heron 1.
If possible, it is hoped to have the crew at site before Mongolia's
parliamentary elections on 28th June, although
campaigning tends to have a disruptive influence on logistics in
the country. If not possible before, mobilisation shortly after the
election will be targeted.
Discussions with PetroChina on oil
processing, export and sale are waiting on feedback promised at a
constructive meeting held in early May. Even if the oil offtake is
not finalised, Petro Matad will prioritise getting the Heron 1 well
ready to produce as soon as possible since we are aware that DQE
expects to be busy with PetroChina and other operators from early
Q3 2024.
Certification of Block XX as State
Special Purpose Land
This process is moving slowly and
the central government's focus on the parliamentary elections is a
further hinderance. MRPAM has written to the Provincial authorities
instructing them to revise the coordinates of their overlapping
area which impinges on the Block XX Exploitation Area. Meanwhile,
the Ministry for Economic Development has advised that its
preparation for a submission to Cabinet to attempt to remove the
obstacles to completing the certification process is progressing.
The Company does not expect substantive progress until after the
June elections but will continue to push for progress before the
elections. With the District level approvals in hand, work can now
be done, but special purpose certification represents the long-term
solution and is still required to mitigate any delays to
operational activities that may arise in future years.
Renewable Energy Projects
SunSteppe Renewable Energy (SRE)'s
project to provide green hydrogen to Mongolia's major Oyu Tolgoi
copper and gold mine is progressing. Wood Group is undertaking the
detailed technical and commercial evaluation which is scheduled to
be completed in Q3 2024 and multilateral and commercial banks are
showing interest in this project. Meanwhile, on
the Choir 50MW Battery Energy Storage System project, environmental studies have begun as part of the
preparations to submit the application for the licence to
construct.
A third project involving
renewable electricity export from Mongolia to China is under
discussion following the signing of an exclusive cooperation
agreement with a major, state-owned Chinese utility. The agreement
envisages a 1.5GW project.
SRE continues to pursue a number
of other initiatives.
Mike Buck, CEO of Petro Matad,
said:
"We are delighted to have
finally secured land access on Block XX and are looking forward to
getting back on to the Heron 1 site and completing the well for
production. The special purpose certification process remains a
frustration but at least now we can work in
parallel.
SRE is making good progress on
its two high-graded projects and the power export initiative offers
exciting potential. It is very pleasing to see that numerous new
opportunities are being generated by the team."
Further operational updates will be provided in
due course.
- Ends -
Further
information please contact:
Petro Matad
Limited
|
|
Mike Buck, CEO
|
+976 7014 1099 / +976 7575 1099
|
|
|
Shore Capital
(Nominated Adviser and Broker)
|
Toby Gibbs
Rachel Goldstein
|
+44 (0) 20 7408 4090
|
Zeus (Joint
Broker)
Simon Johnson
Louisa Waddell
|
+44 (0) 20 3829 5000
|
FTI Consulting
(Communications Advisory Firm)
|
|
Ben Brewerton
Christopher Laing
|
+44 (0) 20 3727 1000
|
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 two Production Sharing
Contracts with the Government of Mongolia. Block XX has an area of
214 square kilometres in the far eastern part of the country and
Block V has an area of 7,937 square kilometres 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.