Business
Exploration Activities Update
Exploration Activities Update.
About this update from Petro Matad Limited
[{"type":"text","content":"\n RNS Number : 2715Q Petro Matad Limited 30 July 2010 \n \n\n \n \nPetro Matad Limited (\"Petro Matad\" or the \"Company\")\n \nExploration Activities Update\n \nPetro Matad (AIM: MATD) provides an update on the Company's drilling operations on Block XX and also its exploration activities on Blocks IV and V in Mongolia.\nBlock XX Drilling programme\nAs previously reported on 14 July 2010, the Company's Davsan Tolgoi-1 (\"DT-1\") exploration well reached a final measured depth of 1,220m. The well passed through the targeted Tsagaantsav Formation from 1,075m to 1,146m, then entered metamorphic basement. The entire 71m section of the Tsagaantsav Formation contained oil shows and elevated mud gas, with indications of live oil through six sandstone and conglomerate units totalling about 35m in aggregate.\n \nSubsequent to 14 July, wireline logging, casing and cementing operations have been undertaken and the Company is pleased to report that initial petrophysical analysis of the Weatherford wireline logs confirm earlier reported results from the drilling shows.\n \nWhilst further analysis is still to be undertaken, the wireline logs indicate good log porosities (25% average) and permeabilities concentrated in six sandstone zones, with a total net pay of 12m. The reservoir quality at DT-1 is attributed to a lack of compaction combined with early and continuous entrapment of hydrocarbons along the crest of the Davsan Tolgoi anticline, which forms the highest structural closure within the Tamtsag Basin. \n \nSamples have been forwarded to laboratories in the United States for reservoirand oil characterisation. Results from petrophysical and laboratory analyses will be utilised in the design of the subsequent well testing portion of the programme. The company is currently sourcing and evaluating workover rigs for those tests and a decision on which well will be tested this year will be made on completion of the drilling element of the three well drill programme.\n \nThe drill rig will shortly be moved to the site of the Company's second well, DT-2, and a further announcement will be made when drilling operations commence.\n \n \nBlocks IV and V exploration\n \nThe first 2D seismic survey has commenced on the Company's Blocks IV and V in centr...