ULAN BATOR - Petro Matad Limited (AIM: MATD), an oil exploration company operating in Mongolia, has commenced oil production at its Heron-1 well within the Block XX Production Sharing Contract area in eastern Mongolia, as announced in a recent press release.
The commencement of production followed the completion of commissioning activities at the Heron-1 well pad. The beam pump initiated operations on Monday, and the company anticipates a several-day period for the clean-up of well stimulation fluids. Subsequently, various flow rate tests will be conducted to assess production levels.
The first batch of produced oil has been successfully transported to the nearby Block XIX facilities. This marks a significant step for Petro Matad in its operations in the region.
A ceremony marking the start of production took place on Tuesday, attended by notable government officials including Mr. S. Javkhlanbaatar, State Secretary of the Ministry of Industry and Mineral Resources, and Mr. L. Bayarmandal, Chairman of the Mineral Resources and Petroleum Authority of Mongolia, signifying the project's importance to the local industry.
Petro Matad's progress into the production phase represents a milestone for the company's activities in Mongolia. The Heron-1 well is situated in an area that has been under exploration and development by the company, aiming to contribute to Mongolia's burgeoning oil industry.
The company's announcement is based on a press release statement and provides a factual update on the operational status of the Heron-1 well. Petro Matad has not disclosed specific production targets or the expected impact on its financial performance at this time.
Investors and industry observers will likely monitor the results of the flow rate tests and subsequent production data to gauge the well's capacity and the potential influence on Petro Matad's portfolio. The successful commencement of production could play a role in shaping the company's operational and financial trajectory in the future.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.