Petro Matad receives valuable data from tests of its DT-4 well in Mongolia

Mongolia-focused oil explorer Petro Matad (LON:MATD) said this afternoon that it has received "valuable information" from the DT-4 well at its Davsan Tolgoi project.

The company has completed the analysis of initial test results for the Davsan Tolgoi 4 well (DT-4) and is designed a stimulation programme as well as contracting stimulation services for final completion of the well.

Results from tests on DT-4 conducted earlier this month were received on 23 September. Swabbing of the primary test objective (between 1,785 metres and 1,801 metres) recovered two litres of 42.5 degree API oil with no water, with an indicated un-stimulated flow rate of two barrels of oil per day.

“The testing of DT-4 has provided valuable information regarding the reservoir characteristics in the deeper parts of the Davsan Tolgoi area,” said Doug McGay, Petro’s chief executive officer. “The recovery of oil without water provides encouragement for the development of the DT-4 oil accumulation. The Lower Tsagaantsav reservoir characteristics at DT-4 compare favourably with historical production data from Block XIX, where all but four wells are reported to have required fracture stimulation, and where fracture stimulation is believed to have substantially increased production.”

McGay added that the 42.5-degree API oil recovered has confirmed Petro’s previous statement about the quality of the oil being expected to vary across the Davsan Tolgoi prospect. The final analysis of the oil obtained from DT-1 has revised the preliminary API announced on August 31 upwards to a grade of 26 degrees API. “When these results from DT-1 and DT-4 are compared with the reported average of 38 degrees API of the oil obtained by Petro China in the adjacent Block XIX, a clear picture of medium to high quality petroleum in the reservoirs fed by the Tolson Uul kitchens is emerging,” he said.