Business
Operational Update and Board Change
Operational Update and Board Change.
About this update from Petro Matad Limited
[{"type":"text","content":"\n \nRNS Number : 1281R Petro Matad Limited 19 September 2017 \n\n19 September 2017\nPetro Matad Limited\n(\"Petro Matad\" or the \"Company\")\nOperational Update and Board Change\nPetro Matad, the AIM quoted Mongolian oil explorer is providing an operational update: \n \nHighlights\n• The Farmout process has advanced, and a number of potential partners are going through internal approval processes, with decisions expected in 4Q 2017 or 1Q 2018. \n• Management, as well as all potential farm out partners, believes that a 3D seismic programme will enhance the farmout process, while de-risking and growing our portfolio of drillable prospects. \n• A comprehensive 3D seismic programme will now commence shortly; defining and high grading drilling targets within the Tugrug Basin, Block V. Additional 2D seismic data will also be acquired\n• The Company has no plans to draw down further from its current financing facility, as its 3D seismic programme is fully funded\n• The contracted SINOPEC rig has been undergoing inspection and certification, and while this process is still ongoing, the rig will not achieve full certification in time to undertake the planned drilling programme in 2017 \n• An expected three-well exploration drilling programme is planned to commence in Spring 2018\n• The Board is re-structuring the executive management of the company\n \nFunding / Farmout\nThe farmout process continues and a number of companies remain in active dialogue with management. These potential partners appear to be more willing to fund a strategy where additional seismic is acquired before a drilling campaign is undertaken. Several potential farminees have expressed a clear preference to de-risk certain prospects in the Tugrug basin using 3D seismic and better defining a number of stratigraphic 'leads' that have so far only been identified on 2D seismic data. They may also be better positioned to farm-in once their 2018 exploration budgets have been established, which could occur as early 4Q 2017. The Company remains optimistic with regards to bringing in a farm-in partner, as without exception, every company that has reviewed the opportunity has responded with very enthusiastic comments regarding the hydr...