Petro Matad completes 3D survey in Tugrug Basin

Petro Matad, the Mongolian oil explorer, has completed its 3D survey focused on defining and de-risking near term drilling targets within the Tugrug Basin.

All the company's technical objectives were met during the 3D acquisition and preliminary processing (in field) has confirmed excellent data quality.

The full 3D dataset has now been transmitted to the processing contractor, Western Geco and full Pre-Stack Time Migration (PSTM) and Pre-Stack Depth Migration (PSDM) processing is underway. Expected turnaround time will be mid Q1 2018 for final PSTM data and end Q1 2018 for full PSDM data.

The Tugrug Basin has a proven working petroleum system which was confirmed with a stratigraphic core hole drilled by the company in 2011 near the basin margin. The core hole contained live, un-biodegraded oil in good quality sandstone reservoir. The newly acquired 3D data will enable the company to optimise the drilling location in the Falcon prospect, a target for the 2018 drilling programme.

The company had initially planned to proceed with a small 2D seismic acquisition programme in the Tugrug Basin following the completion of the 3D survey. However, as this 2D programme was designed to identify additional prospects and leads for potential drilling beyond 2018, and therefore does not impact the choice of locations for the 2018 drilling programme, the company has decided to not acquire the Tugrug Basin 2D seismic at this time.

The seismic crew has mobilised to Block IV and has commenced the planned 204 km 2D seismic acquisition programme over the Khangai Basin in the northern part of Block IV, which is anticipated to complete by early February 2018. This survey aims to better define, for potential drilling in future, certain attractive leads identified on regional 2D seismic, gravity and magnetic surveys acquired in 2015.

At 8:10am: (LON:MATD) Petro Matad Ltd share price was -0.43p at 9.63p