Petro Matad set to reassess data after completing latest well in Mongolia
AIM quoted Mongolian oil explorer Petro Matad (LON:MATD) has wrapped up the 2011 drilling campaign on its Davsan Tolgoi prospect on Block XX by completing well DT-11. The latest well was drilled as a replacement to the earlier DT-1 well, which had to be plugged and abandoned in August because of a damaging cement job. The new well reached a total depth of 1,220m in metamorphic basement rocks below the Tsagaantsav objective. Logging, casing and cementing operations have been completed.DT-11 was drilled 225m south of the DT-1 and encountered the Uppermost Tsagaantsav paleovalley sequence at 1,074m depth with fair and good oil shows from 1,078m to1,084m in both cuttings and in the conventional core that was recovered from 1,078.6m to 1,087m.
Oil shows in the core included strong hydrocarbon odour, dark brown oil staining, dull golden to bright yellow fluorescence and yellow to white streaming cut. A thin sequence of the Lower Tsagaantsav was penetrated from 1,134m to the top of basement at 1,151m with no indications of hydrocarbons. Petro Matad said petrophysical analysis indicated a total of 14.5 metres of net pay.
Douglas McGay, the chief executive of Petro Matad, said: “We are pleased that the efficient drilling and sound mechanical condition of the DT-11 replacement well will permit us to fully test the same Uppermost Tsagaantsav reservoir encountered in DT-1. We expect testing to commence in the near future.”
In its interim results, also released today, Petro Matad reported that DT-11 would be the last well to be drilled during 2011. The company’s contractor, DQE International has stacked its rig on site ready for recommencement of drilling activity for Petro Matad in 2012.
The company said that drilling this year had demonstrated that while the Davsan Tolgoi prospect would eventually prove to be a viable oilfield, the geological settings were complex and required further work. With the added frustration of weak world markets, which have contributed to a 63% fall in Petro Matad’s share price since the start of the year, the company has decided to re-assess of all the data rather than pushing ahead with drilling through the winter.
Oil shows in the core included strong hydrocarbon odour, dark brown oil staining, dull golden to bright yellow fluorescence and yellow to white streaming cut. A thin sequence of the Lower Tsagaantsav was penetrated from 1,134m to the top of basement at 1,151m with no indications of hydrocarbons. Petro Matad said petrophysical analysis indicated a total of 14.5 metres of net pay.
Douglas McGay, the chief executive of Petro Matad, said: “We are pleased that the efficient drilling and sound mechanical condition of the DT-11 replacement well will permit us to fully test the same Uppermost Tsagaantsav reservoir encountered in DT-1. We expect testing to commence in the near future.”
In its interim results, also released today, Petro Matad reported that DT-11 would be the last well to be drilled during 2011. The company’s contractor, DQE International has stacked its rig on site ready for recommencement of drilling activity for Petro Matad in 2012.
The company said that drilling this year had demonstrated that while the Davsan Tolgoi prospect would eventually prove to be a viable oilfield, the geological settings were complex and required further work. With the added frustration of weak world markets, which have contributed to a 63% fall in Petro Matad’s share price since the start of the year, the company has decided to re-assess of all the data rather than pushing ahead with drilling through the winter.
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