Business
H1 Production Operations and Well Testing Update
Petro Matad's Heron-1 well continues production at approximately 150 barrels per day with a stable water cut of around 3%. The company received $110k net for July's production, after PetroChina withheld 30%, with a realized oil price of $66.4 per barrel. August's payment is overdue, but PetroChina anticipates smoother payments going forward. A 1.2km transmission line extension is under construction to connect Heron-1 to the national grid, targeting a 15% operating expenditure saving. The workover rig has moved to the Gazelle-1 location, with well test operations expected to commence in early October and complete within the month. Disclaimer*
About this update from Petro Matad Limited
[{"type":"text","content":"\n\nTHE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY PETRO MATAD LIMITED TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014 AS IT FORMS PART OF UNITED KINGDOM DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 (\"UK MAR\"). ON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE (\"RIS\"), THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.\nPetro Matad Limited\n('Petro Matad' or the 'Company' or the 'Group')\nUpdate on production operations and 2025 well testing programme\nLONDON, 29 September 2025: Petro Matad Limited, the AIM quoted Mongolian oil company, is pleased to provide the following update on its Heron-1 production operations and the 2025 well testing programme.\nHeron-1 production operations\nThe Heron-1 well continues to produce with artificial lift at a rate of c. 150 barrels per day (bopd) with water cut stable at c. 3%. The well performance to date when compared to data the Company has for other wells in the basin indicates a pressure profile similar to some of the better producing wells in Block XIX. To date, data from Heron-1 does not show that any faults or reservoir boundaries have been encountered that limit reservoir volume. Trucking, offloading and transfer operations at the Block XIX TA-1 facilities continue to run smoothly.\nFollowing interaction with the Customs authorities, they have determined that supporting export paperwork specific to Block XX crude is not required as the crude is mixed with Block XIX crude and exported to the buyer as a single product. This decision by Customs streamlines the bureaucracy considerably as it avoids the need to provide a certificate of origin and to do laboratory tests at the provincial testing facilities for each export shipment.\nOil sales payments\nIn late September, the Company received payment for July's production. PetroChina continued to withhold 30% so the amount received was $110k net to Petro Matad. The realised oil price for July was $66.4 per barrel. The invoice for August production is already overdue for payment but since PetroChina has advised that the teething problems of its new payment system have been overcome, we are hopeful of smoother payment processing from this point forward. It remains to be seen if PetroChin...