Petro Matad Limited (LON:MATD) updated investors on its exploration efforts in Mongolia, where the interpretation of 3D seismic data for the Tugrug basin is ongoing ahead of a well drilling programme.
The company noted that high quality data has identified ‘bright amplitude anomalies’ which it described as “very encouraging” for hydrocarbon prospectivity.
It has, however, withdrawn the previously identified Falcon prospect from the Tugrug drill plans because it has been shown to be smaller than initially anticipated.
Petro Matad chief executive Mike Buck highlighted that it was a good decision to shoot 3D seismic.
“The new mapping on the 3D indicates that we have some excellent targets but we do not wish to delay our exploration efforts in 2018 whilst they are matured to drillable status,” Buck said.
“Snow Leopard and Wild Horse are two large, well defined and exciting prospects with huge follow up potential.”
The plan is to first drill the Snow Leopard prospect, in Block XX. The prospect is estimated to host 90mln barrels. It is anticipated that site works will get underway in May while permitting is expected to be finalised during April.
After Snow Leopard, the plan is to drill the 290mln barrel Wild Horse prospect.
The company is advancing a tender process to secure a drilling rig for the drill programme, which is slated for the second half of 2018.
Buck added: “As the firm two well programme for Blocks IV and V in 2018, they will tell us a lot more about the potential of the area and we are moving ahead rapidly with preparations to start drilling during this quarter.
“Planning, procurement and permitting for drilling in Block XX are also advancing well."
Petro Matad shares dropped 7.23% to trade at 11.55p.