LONDON - Petro Matad Limited (AIM: MATD), an oil company operating in Mongolia, has announced the imminent start of production at its Heron-1 well within the Block XX Production Sharing Contract area in eastern Mongolia. The company expects to begin oil production on or before October 25, 2024, following the completion of construction and equipment installation at the well pad.
The initiation of production will be marked by a ceremony attended by a delegation led by the Ministry of Industry and Mineral Resources on October 25. High-level officials, including those from the Mineral Resources and Petroleum Authority of Mongolia (MRPAM), as well as provincial and district governors, are expected to be present.
Petro Matad's team is currently finalizing the commissioning of critical site infrastructure, including the beam pump, generator, and storage tanks. The company has also been preparing for the transport of the produced fluids to PetroChina's facilities, located approximately 20 kilometers north in Block XIX.
The company is finalizing a Cooperation Agreement with PetroChina Daqing Tamsag, which will facilitate the offloading, measurement, processing, export, and sale of the oil produced from Block XX. While the agreement is nearing completion, with most terms aligning with expectations, the administration fee payable to PetroChina is still under negotiation. Despite this, production is set to commence ahead of the operational winter shutdown in late November, with the support of PetroChina and MRPAM.
Mike Buck, CEO of Petro Matad, expressed gratitude for the support from the Ministry, MRPAM, and the cooperation from PetroChina, as well as for the patience of shareholders and the dedication of the company's team.
Petro Matad will provide further operational updates as developments occur. This report is based on a press release statement by Petro Matad Limited.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.