Business
Drilling Contract Award
Drilling Contract Award.
About this update from Petro Matad Limited
[{"type":"text","content":"\n \nRNS Number : 6797G Petro Matad Limited 31 May 2017 \n\n31 May 2017\nPetro Matad Limited\n(\"Petro Matad\" or the \"Company\")\nDrilling Contract Award\nFurther to the Company's announcement of 21 April 2017, Petro Matad is pleased to announce the awarding today of a Letter of Intent (LOI) to Sinopec Mongolia LLC (Sinopec) for the drilling of up to two wells in 2017. The LOI is subject to completion of all contractual negotiations, which are at an advanced stage and are expected to be completed soon. Sinopec will commence rig preparation for mobilization shortly after issuance of the LOI so the remaining contract negotiations will not cause further delay.\nThe Company's funding agreement with Bergen Global Opportunity Fund, LP, as announced on 8 May 2017, has put the Company in a strong financial position to execute this drilling campaign. \nTo provide the Company with additional financial flexibility, Petro Matad continues to be in farmout discussions with a number of interested parties. \nSubsequent announcements will include specific information on the drilling programme.\nRidvan Karpuz, CEO of Petro Matad, said:\n\"We are delighted to have reached agreement with Sinopec on the contractual framework for executing a drilling programme later this year. Sinopec has a proven track record of successful operations in Mongolia and fully understands the operating conditions in the country.\n \nAbout Sinopec Mongolia LLC\nSINOPEC Mongolia LLC has been successfully operating in Mongolia since 2008 and has established an excellent track record in safely executing onshore turnkey drilling campaigns. SINOPEC is a recognised world leader in operating drilling rigs and providing associated services. In participating in Petro Matad's tender, SINOPEC offered rig 4518 (DJ45 Series) which is capable of exceeding the well depths of the Company's planned drilling programme. SINOPEC has commented that they gratefully accept this award and are very happy to be working with Petro Matad on its exciting exploration drilling programme.\nAbout Petro Matad\nPetro Matad is the parent company of a group focussed on oil exploration, as well as future development and production in Mongolia. At the current time, Petro Matad holds the sole operatorship of three Production Sharing Contracts with the Government of Mongolia. Block...