Business
Drilling Update
Drilling Update.
About this update from Petro Matad Limited
[{"type":"text","content":"\n RNS Number : 3550X Petro Matad Limited 03 December 2010 \n \n\n \nPetro Matad Limited (\"Petro Matad\" or the \"Company\")\n \nDrilling Update\nPetro Matad advises that it has suspended drilling operations at its Davsan Tolgoi-4 (\"DT-4\") well site due to worsening winter weather conditions. The DT-4 well is being drilled vertically to an estimated target depth of 2,020 metres with the principal objective of testing a four-way fold closure that is part of a fault block prospect named Davsan Tolgoi West, that has a pre-drill potential mean un-risked resource of 21 MMBO. This prospect is separate from the main Davsan Tolgoi Prospect and its published Prospective Resources, and on which DT-1, DT-2 and DT-3 wells were drilled in 2010. \nDT-4 is being drilled by a partially winterised rig and is currently at a depth of 1,271 metres, at the bottom of the intermediate section. With current and forecast minimum temperatures of minus 20 degrees centigrade and below, the rig is at the limits of its tolerances and the decision has been made by the Company in conjunction with its drilling consultants \"add ips pty ltd\" and contractor, \"DQE International\", to suspend operations.\nThe well is currently at an ideal stage to suspend operations, enabling an orderly shutdown and re-commencement. The well has been logged to the current depth, the casing and cementing of the intermediate section has been completed, thewellbore is in a safe position and the reservoir section is yet to be disturbed. The drilling rig will remain on location and is being prepared for hibernation over the winter. It is anticipated that drilling operations will recommence in early April 2011.\nCurrently, analysis of the results ascertained from the highly successful 2010 drilling programme is being undertaken. Results from the DT-1, DT-2 and DT-3 wells will enable the Company to undertaken a revaluation of the published Prospective Resources of Davsan Tolgoi. The 3D seismic survey is being both re-processed and re-mapped, and the previous risking analysis is being re-assessed. Following that in-house assessment, Petro Matad will engage a Competent Person to undertake an independent review of the Company's findings. That work will be completed before spring.\nCEO D...