Company Information for Petro Matad Limited

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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. It is exploring in the east of Mongolia, with a Production Sharing Contract on Matad Block XX, in which it is the sole contractor with the Government of Mongolia.

Block XX is immediately south of the largest producing oilfield in Mongolia, in the Tamtsag Basin. The Company is currently undertaking seismic surveys designed to define targets for a drilling programme commencing in 2009.

The Company shares were admitted to trading on the AIM of the London Stock Exchange on May 1st, 2008. Required statutory information is contained above under the tab “AIM Rule 26”. Other information will be made available on this website in due course.

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

Related News

11/06/09 - Petro Matad Plans Three Wells On Its Mongolian Acreage In 2009
23/04/09 - Petro Matad Gets Ready To Drill A Multi-Well Programme On Its Prospective Mongolian Acreage
09/10/08 - Petro Matad Works Up Seismic Results To Prepare For 2009 Drilling Campaign In Eastern Mongolia
12/06/08 - Petro Matad Shows It Is In Haste To Find Some Oil In Its Concession In Mongolia
29/04/08 - Petro Matad Floats On London’s AIM To Exploit Highly Prospective Assets In Mongolia

Most Recent Statement

10/06/09 - Preliminary results for year ended 31 December 2008
09/04/09 - Award of Options
20/03/09 - Director/PDMR Shareholding
02/03/09 - Total Voting Rights
20/02/09 - Issue of Equity
17/12/08 - Results of Davsan Tolgoi 2008 3D Seismic Survey