9th Sep 2024 12:21
(Alliance News) - Petro Matad Ltd on Monday said it spudded the Heron-2 development well in the Tamsag Basin on Sunday.
It is the Mongolia-focused petroleum exploration and development company's first well to be drilled on its self-operated Heron field, which has a potential of 190 million barrels.
Heron-2 is situated 800 metres south of the original Heron-1 discovery well which flowed at a maximum rate of 821 barrels of oil per day on test.
Petro Matad expects drilling to the total depth of 2,900 metres to last around 30 days following which wireline logging will be conducted to evaluate the productive potential of the reservoir.
A well test and stimulation programme are scheduled for the 2024 operational season and, if successful, Heron-2 will be put on stream in either late 2024 or the second quarter of 2025 after the winter operational shut down.
Chief Executive Officer Mike Buck said: "After a lot of effort from our staff and considerable patience from our shareholders, we are very pleased to have spudded the Heron-2 development well and we look forward to Gobi Bear-1 following soon [by mid-September]. We are encouraged by the progress of discussions on cooperation with PetroChina [Co Ltd] and we are pushing for the final approval on the Heron-1 construction permit which we don't expect to take much longer."
Discussion between the two companies are working towards a possible agreement which will allow Petro Matad to have access to PetroChina's oil processing facilities, transport and oil sales infrastructure.
Petro Matad shares were down 3.9% at 2.57 pence each in London on Monday morning.
By Elijah Dale, Alliance News reporter
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