Petro Matad updates on licence arrangements; shares up
Mongolia focused Petro Matad (LON:MATD) has received from the government authority the usual two year extension to its production sharing contract (PSC) on Block XX in the eastern part of the country.
The firm also told investors today that it had received approval from the Petroleum Authority of Mongolia (PAM) to relinquish parts of the original areas of Blocks IV and V in the southwest and central respectively, which have been shown to not be prospective for hydrocarbons.
In a statement, Petro Matad said that all the current conditions of the PSC remained in place during the extension, which will come up for renew again after July 19, 2013.
Minimum work commitments for the two years total US$35,900,000, and no further mandatory relinquishments of area are required, said the firm.
It added: "The company has received approval from PAM to relinquish 25.7 percent and 34 percent. of the original areas of Blocks IV and V respectively, as required by the terms of the PSCs and Mongolian law."
It said that Blocks IV and V are now 28,998.60 sq km and 21,149.72 sq km respectively.
Studies of surface geology, 2D seismic, gravity, and magnetic surveys confirmed that the relinquished areas are non-prospective for hydrocarbons, said the company.
This afternoon shares in the firm were up 2.22 percent - trading at 46 pence.
The firm also told investors today that it had received approval from the Petroleum Authority of Mongolia (PAM) to relinquish parts of the original areas of Blocks IV and V in the southwest and central respectively, which have been shown to not be prospective for hydrocarbons.
In a statement, Petro Matad said that all the current conditions of the PSC remained in place during the extension, which will come up for renew again after July 19, 2013.
Minimum work commitments for the two years total US$35,900,000, and no further mandatory relinquishments of area are required, said the firm.
It added: "The company has received approval from PAM to relinquish 25.7 percent and 34 percent. of the original areas of Blocks IV and V respectively, as required by the terms of the PSCs and Mongolian law."
It said that Blocks IV and V are now 28,998.60 sq km and 21,149.72 sq km respectively.
Studies of surface geology, 2D seismic, gravity, and magnetic surveys confirmed that the relinquished areas are non-prospective for hydrocarbons, said the company.
This afternoon shares in the firm were up 2.22 percent - trading at 46 pence.
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