Business
Block XX Exploration Drilling
Block XX Exploration Drilling.
About this update from Petro Matad Limited
[{"type":"text","content":"\n RNS Number : 3593V Petro Matad Limited 01 November 2010 \n \n\n \n \nPetro Matad Limited (\"Petro Matad\" or the \"Company\")\n \nBlock XX Exploration Drilling Update\n \nPetro Matad (AIM: MATD) is pleased to provide an update on its drilling activities on the Davsan Tolgoi Prospect on Block XX in Eastern Mongolia.\n \nDrilling operations on the DT-3 well were completed on 27 October 2010 at a measured depth of 1,266m, in basement rocks. \n \nSignificant hydrocarbon shows were encountered while drilling both the primary objective Lower Tsagaantsav formation and the overlying Upper Zuunbayan formation.\n \nUpper Zuunbayan sandstones exhibited live oil shows from 750m to 765m. Preliminary petrophysical analysis of wireline logs delineates 5.5m of potential net pay within this zone. Porosity within the net pay intervals averages 23%.\n \nThe Lower Tsagaantsav sandstones included 10m of weak live oil shows from 1,005m to 1,015m with elevated pentane gas levels from 945m to 1216m. Preliminary petrophysical analysis of wireline logs indicate that the Lower Tsagaantsav sandstones include more than 50m of high-quality reservoir rocks with average porosities above 20% that are evenly distributed over the 281m gross interval from 935m-1,216m. However, calculated hydrocarbon saturations are low throughout the Lower Tsagaantsav reservoir, indicating that the Tsagaantsav is a poor candidate for testing at this location.\n \nDT-3 was designed to test the continuity of hydrocarbons in Tsagaantsav reservoirs between the area of the earlier DT-1 and DT-2 test wells, about 8 km to the northeast. Comparison of the high calculated hydrocarbon saturations at DT-1 and DT-2 with low saturations at DT-3 indicate that DT-3 lies within a separate fluid compartment from DT-1 and DT-2. The extent of each compartment will be evaluated by the remapping of the 3D seismic survey. \n \nDT-3 was also designed to provide a wider sampling of Tsagaantsav reservoir quality along Greater Davsan Tolgoi prospect. The actual 50m or more of reservoir quality rock encountered at DT-3 compares favourably with the assumed 10.35m net reservoir thickness that formed the basis of the 2009 mean recoverable resource estimate of 121.5 MMBO for the prospect. \n \nDT-3 is the t...