Business
Operational Update
Petro Matad Limited reported its most productive month to date in November 2025, driven by the commencement of production from Gazelle-1, while Heron-1 maintained stable output. The Heron-2 re-test was suspended for winter due to slow refill rates, with further evaluation planned. Significant progress has been made in finalizing the Oil Sales Agreement with PetroChina to resolve revenue withholding, with only a minor tax issue remaining, and the 2026 agreement is being prepared. The company has received a farm-in proposal for Block XX and is in discussions, while also pursuing leads with other interested parties. Additionally, SunSteppe Renewable Energy is advancing three projects, notably aiming for ready-to-build status for a 200MW hybrid project in 2026. Disclaimer*
About this update from Petro Matad Limited
THE 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. Petro Matad Limited ('Petro Matad' or the 'Company' or the 'Group') Operational Update LONDON, 12 December 2025: Petro Matad Limited, the AIM quoted Mongolian oil company, is pleased to provide the following operational update. Key updates · Heron-1 and Gazelle-1 have produced well through November making it Petro Matad's most productive month to date. · Heron-2 re-test shut in for the winter. · The rewording of the Oil Sales Agreement is being finalised with PetroChina in order to remove its partial withholding and secure payment of the withheld amount. Only the matter of tax on processing fees remains to be resolved and this is relatively minor. The 2026 Oil Sales Agreement is being prepared incorporating the amendments to the 2025 contract. · A proposal to farm-in to Block XX has been received and is under discussion. · SunSteppe Renewable Energy is progressing three projects and is focusing efforts to expedite its 200MW hybrid project to ready-to build-status during 2026. Block XX production Heron-1 continues to deliver stable production in line with the Company's forecasts, with no free water detected. Meanwhile, Gazelle-1 started up in early November and, after a few initial teething problems were overcome, has made November 2025 Petro Matad's most productive month to date. Gazelle-1 was brought onstream at 200 barrels per day and the surface facilities have run well. The well tests on Gazelle-1 saw no free water but some water during production has been seen along with a higher wax content than we see in the Heron-1 oil. Rate tests are in hand to determine how best to optimise oil production and minimise water encroachment and an assay of the Gazelle oil is planned to investigate any differences in its chemistry from other Block XX and Block XIX oils. Meanwhile, the oil is being accepted int...
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