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Petro Matad Operational Update
Petro Matad Limited has received the full $1.03 million in production revenue withheld by PetroChina during 2025 and is finalizing the 2026 Oil Sales Agreement. Block XX production from Heron-1 averaged 161 barrels of oil per day in 2025, exceeding expectations, while Gazelle-1 is now producing approximately 135 barrels of oil per day with controlled water production. Farm-out discussions for Block XX are nearing completion, and the 200MW hybrid renewable energy project is progressing well, with feasibility studies submitted for approval and targeting Ready-to-Build status 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, 18 February 2026: Petro Matad Limited, the AIM quoted Mongolian oil company, is pleased to provide the following operational update. Key updates · All production revenue withheld by PetroChina during 2025 has been paid - totaling $1.03 million. · The wording of the contract to cover the 2026 Oil Sales Agreement is being finalised. · Block XX production continues in line with expectations. · Farm-out discussions with one counterparty are nearing completion. · The 200MW Hybrid renewable energy project is progressing well. Oil Sales Agreement Discussions with PetroChina on the Oil Sales Agreement and its withholding of revenue from Petro Matad's 2025 production invoices have been completed and PetroChina has paid $1.03 million representing all of the revenue previously withheld. Wording is now being finalised for the 2026 Oil Sales Agreement incorporating the revisions required by both parties based on the lessons learned from the 2025 contract. Block XX production Heron-1 continues to produce in line with the Company's forecasts and averaged 161 barrels of oil per day (bopd) through 2025 which was ahead of the Company's initial expectations. As previously reported, Gazelle-1 started to produce formation water along with oil, and rate tests were conducted to optimise oil production and minimise water encroachment. These tests determined that water production was controlled and stabilised at c.25% when the pump was set to deliver total fluid rates of up to 180 barrels per day. At this pump setting, Gazelle-1 is now producing c. 135bopd with the reservoir still showing good deliverability. Farm-out Discussions with one potential farm-in partner for Block XX are nearing completion and...
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