Petro Matad aims to define a low risk drilling programme in Mongolia
Petro Matad (LON:MATD) outlined exploration plans for its assets in Mongolia for the rest of the year and 2013, hoping to refine their “enormous potential”.
The company told investors today that a review of the extensive 2011 field season in Mongolia recommended that the company refines the work to date to generate drill and seismic targets.
Based on the review, the company has decided to suspend drilling and testing for the remainder of 2012, while the suggested studies and changes are conducted.
This work is now ongoing including re-processing of some seismic data and an update of the seismic interpretation.
“Whilst the 2011 programme at Davsan Tolgoi was a major disappointment for the company, the results have contributed significantly to our understanding of the assets,” said chief executive of Petro Matad Douglas McGay.
“We have un-matched holdings of both prospectivity and size, all of which still offer enormous potential.
“The further exploration studies we have now planned and commenced will refine some of that potential and lead us to the next stages of our exploration.”
The company said it aims to define a “balanced and lower risk drilling programme”.
“The market will be informed once these studies have been completed and further exploration decisions are made by the board,” said Petro Matad.
The company will undertake further technical studies on all three of its blocks in Mongolia over the next four months, focusing on blocks XX and V to identify drill targets and areas for future seismic surveys.
No further drilling or testing will be conducted on Block XX this year and Petro’s exploration focus will be on the development of drilling and seismic programmes for all properties next year.
Future drilling on Block XX is likely to be in areas to the west and east of the Davsan Tolgoi Anticline.
At Block V, the company identified good source rock and reservoir potential from core samples obtained from the 2011 stratigraphic well, while 2D data acquired last year showed several prospective leads.
Further technical work is required to identify an area for the 2012/2013 winter seismic acquisition campaign with first drilling targeted for 2013.
Meanwhile, seismic data from the oil shale Block IV has identified several large structures and increased its prospectivity. Petro Matad said it will continue technical work to “enhance understanding of the block”.
The company said two shallow core holes were drilled on the KUB oil shale occurrence in the south of the block, confirming that thick sections of oil shale occur over a large aerial extent.
Assay results from those core holes have indicated the high and potentially commercial values of organic content and yieldable hydrocarbons.
Preliminary studies carried out suggest the oil shale could be suitable for both in-situ and ex-situ processing, said Petro Matad, adding that it will undertake additional drilling to refine the extent and quality of the oil shale occurrence.
The company told investors today that a review of the extensive 2011 field season in Mongolia recommended that the company refines the work to date to generate drill and seismic targets.
Based on the review, the company has decided to suspend drilling and testing for the remainder of 2012, while the suggested studies and changes are conducted.
This work is now ongoing including re-processing of some seismic data and an update of the seismic interpretation.
“Whilst the 2011 programme at Davsan Tolgoi was a major disappointment for the company, the results have contributed significantly to our understanding of the assets,” said chief executive of Petro Matad Douglas McGay.
“We have un-matched holdings of both prospectivity and size, all of which still offer enormous potential.
“The further exploration studies we have now planned and commenced will refine some of that potential and lead us to the next stages of our exploration.”
The company said it aims to define a “balanced and lower risk drilling programme”.
“The market will be informed once these studies have been completed and further exploration decisions are made by the board,” said Petro Matad.
The company will undertake further technical studies on all three of its blocks in Mongolia over the next four months, focusing on blocks XX and V to identify drill targets and areas for future seismic surveys.
No further drilling or testing will be conducted on Block XX this year and Petro’s exploration focus will be on the development of drilling and seismic programmes for all properties next year.
Future drilling on Block XX is likely to be in areas to the west and east of the Davsan Tolgoi Anticline.
At Block V, the company identified good source rock and reservoir potential from core samples obtained from the 2011 stratigraphic well, while 2D data acquired last year showed several prospective leads.
Further technical work is required to identify an area for the 2012/2013 winter seismic acquisition campaign with first drilling targeted for 2013.
Meanwhile, seismic data from the oil shale Block IV has identified several large structures and increased its prospectivity. Petro Matad said it will continue technical work to “enhance understanding of the block”.
The company said two shallow core holes were drilled on the KUB oil shale occurrence in the south of the block, confirming that thick sections of oil shale occur over a large aerial extent.
Assay results from those core holes have indicated the high and potentially commercial values of organic content and yieldable hydrocarbons.
Preliminary studies carried out suggest the oil shale could be suitable for both in-situ and ex-situ processing, said Petro Matad, adding that it will undertake additional drilling to refine the extent and quality of the oil shale occurrence.
Comments
Post a Comment