23rd Sep 2024 14:00
(Alliance News) - Petro Matad Ltd on Monday celebrated the spudding of the Gobi Bear-1 exploration well, which is located in the Tamsag Basin in eastern Mongolia.
Petro Matad is a petroleum exploration, development and production company, focused on projects in Mongolia.
The well is being drilled by DQE International Rig 30609, Petro Matad said, and is located around 12 kilometres southwest of the Heron-1 oil discovery well in the Block XX exploitation area.
It is expected to take around 20 days to drill, and is targeting reservoir quality sandstones in the Cretaceous Lower Tsagaantsav formation. This is the main producing horizon in the Tamsag Basin.
"Gobi Bear-1 is an important well within Block XX. The prospect has significant resource potential which can be rapidly exploited in the event of success as it is located within an already approved exploitation licence area," said Chief Executive Officer Mike Buck.
"The well cost is estimated to be USD1.5 million, making this a very high impact/very low cost, near-field exploration well. It also has the potential to de-risk other prospects and leads identified within Block XX."
Shares in Petro Matad were trading 4.8% lower at 2.12 pence each in London on Monday afternoon.
By Holly Beveridge, Alliance News senior reporter
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