Petro Matad upgrades prospective basin portfolio

Petro Matad said, with results of the data acquired during the 2015-2016 exploration work programme, it has significantly upgraded its prospective basin portfolio.

“The current data coverage in the Company’s acreage has revealed 12 basins and this is likely to increase as more work program activities, including seismic acquisition, are undertaken in the future,” it said in a statement.

“Therefore, excellent potential for discovering material hydrocarbon volumes exists within the Company’s acreage.”

OTHER HIGHLIGHTS:

– Regional petroleum basin modelling and play evaluation work has addressed 6 key basins where the data coverage is currently more complete; these are: Biger, Shal, Baatsagaan, and Baidrag in Block IV; and Taats and Tugrug in Block V. The other basins (which only have sparse data coverage) that make up the remainder of the 12 basins are: Delger, Bayantsagaan, Khangai, Orog, Khovor and Guchin-Us.

– Potentially generated hydrocarbons using the play and basin analysis method on the 6 high-graded key basins is estimated to be circa 90 billion barrels of oil in the Upper Jurassic-Lower Cretaceous play, which is the proven and producing petroleum system in Mongolia. The volume of potentially trapped oil ranges from 9 to 23 billion barrels of Stock Oil Initially in Place (STOIIP), assuming trapping efficiencies of 10% to 25%. Further upside potential exists in the deeper Permian-Jurassic play, which is analogous to the prolific systems in the western Chinese basins. The remaining six other sub-basins and other areas with limited data coverage will be the focus of future new seismic acquisition to determine their prospectivity potential.

– The Company’s play and basin focused exploration strategy has enabled the Company to build a portfolio which contains a wide range of exploration opportunities. This diversified basin portfolio approach has provided the framework for a spectrum of leads and prospects with different risk and reward factors, to be developed. The result is that the Company has an extensive drill-ready high impact prospect portfolio for the upcoming 2017 drilling campaign and beyond.

At 9:25am: (LON:MATD) Petro Matad Ltd share price was +1.1p at 4.13p

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