Petro Matad – disappointing Velociraptor-1 well declared a depth of 1500m and water bearing
Petro Matad – disappointing Velociraptor-1 well results declared a depth of 1500m and water-bearing, now plugged and abandoned
The Isle-of-Man based Petro Matad (LON:MATD), the oil exploration company focussing upon future development and production in Mongolia, has today announced a very disappointing result whch upset its share price.
The company has a 100% working interest and the operatorship of two Production Sharing Contracts with the Government of Mongolia - Block XX which has an area of 214 sq km in the far eastern part of the country and Block V with an area of 7,937 sq km in the central western part of the country.
The Velociraptor-1 exploration well in the Taats Basin of Block V reached a total depth of 1500m and wireline logging has been completed but unfortunately all the reservoirs encountered were water-bearing.
The well will now be plugged and abandoned, and the rig will be demobilised.
CEO Mike Buck stated that:
"The results of the Velociraptor 1 well are obviously disappointing but such high impact targets, drillable at modest well cost cannot be ignored when exploring frontier areas.
The well provides a valuable new data point to help unlock the hydrocarbon potential of the southern Gobi.
We will now incorporate the well results into our overall evaluation of the area.
Meanwhile our operational focus shifts back to Block XX where the Heron development offers near-term oil production and revenue generation and where low-risk, near-field exploration opportunities have already been identified which provide exciting upside potential."