Company Information for Petro Matad Limited

AIM-MATD

www.petromatad.com

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AIM; MATD

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Company Statement

Petro Matad Limited (AIM: MATD) is the parent company of a group focussed on oil exploration, as well as future development and production in Mongolia. The Group’s principal asset is the Production Sharing Contract (PSC)
over Matad Block XX, a petroleum block with an area of 14,250km2 in the
far eastern part of Mongolia, near the Chinese border. Recently the
company signed two more Production Sharing Contracts on Bogd Block IV
and Ongi Block V, a total of approximately 71,000km² in central
Mongolia.

Block XX is immediately south of the largest producing oilfield in Mongolia, in the Tamtsag Basin. The Company is currently undertaking a drilling programme on Block XX that commenced in 2009 and early stage exploration and appraisal of Blocks IV and V.

The Company shares were admitted to trading on the AIM of the London Stock Exchange on May 1st, 2008. The company is the first substantially Mongolian owned company to have
its shares admitted to trading on any major international stock
exchange.

Operations and Technology

Petro Matad floated on London’s Alternative Investment Market (AIM) in May 2008 achieving an initial market capitalisation of around £35 million. There was no capital raising at the time of the float. Earlier in 2008, the Company, which is registered in the Isle of Man in the UK, raised US$10 million.

The Company is focused on oil exploration, as well as future development and production of oil in Mongolia. The Company says it is the first purely Mongolian based oil company to be quoted on the London Stock Exchange. Petrovis, which is one of Mongolia’s 10 largest companies with a turnover of US$91.5 million in 2007 and which imports virtually all of the country’s refined oil products, is a 37 per cent shareholder.

The Company’s key asset is the 100 per cent ownership of the highly prospective Block XX. Located in the Tamtsag Basin on the eastern Mongolian steppe, Block XX is large, measuring 18,956 sq kms, and it is adjacent to producing blocks now operated by Daqing, a subsidiary of Chinese oil giant PetroChina.

There are 28 oil blocks in Mongolia, many of them unassigned. Between 1993 and 2005 the London Stock Exchange main board listed SOCO International which held Blocks XI, XIX, XX, XXI and XXII. In 1997 SOCO discovered the Tolson Uul oilfield on Block XIX. In 1998 SOCO drilled a dry well 20-1 on Block XX, apparently off structure. In 2000 SOCO relinquished Blocks XI and XX. Then, in 2002, SOCO discovered the Tolson Uul North field. In 2005 Daqing acquired Blocks XIX, XXI and XXII from SOCO for US$92.6 million. Following the sale of SOCO’s assets, Petro Matad LLC, 100% owned subsidiary of Petro Matad applied for, and was finally awarded, Block XX in 2006.

The Daqing owned blocks to the north of Block XX were producing just over 2,000 barrels of oil per day in 2007. This was up from 1,000 bpd in 2006. This could rise substantially as Daqing intensifies the number of wells in operation. There were 52 wells drilled in 2006 and 100 wells in 2007. It seems that Daqing will drill 225 wells including 125 exploration wells with 25 rigs during the course of 2008.

Block XX is considered highly prospective. In the 1950s Russian technicians drilled Well-24 K-24, which had oil shows. The northern part of Block XX is close to existing production. Specifically there are extensions into Block XX of the Tolson Uul and East Tolson Uul Grabens (sub basins) which are productive in Block XIX.

Interpretation of the most recent seismic has identified the mapping of 11 prospects and leads. The Competent Person’s Report prepared by Isis Petroleum Consultants (Isis) on Block XX states: “The prospects and leads have a total mean unrisked prospective recoverable resource potential of 745 million barrels and a risked prospective recoverable resource potential of 85 million barrels.”

Petro Matad feels it is poised for some onshore, low cost exploration and development with near term development potential and captive markets. The targets are shallow, between 250 and 2050 metres, with low drilling costs of between US$700,000 and US$1.5 million a well. There is a ready market across the border in China at near world prices (US$4 a barrel below WTI). The US$10 million raised is being used to fund the 2008 seismic programme, corporate fees associated with the admission to AIM. The company intends to drill four wells in the first half of 2009 subject to raising necessary funds or negotiating farms.

Board of Directors and Key Management

Non-Executive Chairman	Gordon Leonard Toll
Non-Executive Deputy Chair	Dr Janchiv Oyungerel
Chief Executive Officer	Douglas John McGay
Finance Director	Clyde Robert Evans
Non-Executive Director	Sarangua Davaadorj
Non-Executive Director	Dr. John Campbell Robertson

Company Address

Victory House
Douglas, Isle of Man, United Kingdom IM


Telephone:	+44 (0) 1624 627 099
Facsimile:	+44 (0) 1624 677 225
Email:	admin[at]petromatad.com
Website:	http://www.petromatad.com

Additional Address/Key Contact

Mongolian Operations Office:
Suite 407 NIC Building
Amar Street 8
Sukhbaatar District
Ulaanbaatar 210646
Mongolia
Tel: +976 11 331099
Fax: +971 11 321799

Australian Representative Office:
Suite 4
20 Altona Street
West Perth 6005
Western Australia
Tel: +61 (0) 8 9486 4588
Fax: +61 (0) 8 9486 4587

Hong Kong Representative Office:
3905 Two Exchange Square
Suite No. 7703
8 Connaught Place
Central, Hong Kong
Tel: +852 3189 2564
Fax: +852 2521 1190

Most Recent Statement

06/01/10 - Director dealings
18/12/09 - Investment by the EBRD (Mongolian)
18/12/09 - Investment by the EBRD
05/11/09 - Holding(s) in Company
22/10/09 - Drilling Contract
28/08/09 - Issue of Equity

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