Petro Matad Ltd (LON:MATD) appears to be salvaging some hope from last year’s failed exploration programme in Mongolia, as it starts lining up new targets for this year’s campaign.
Neither the Snow Leopard or Wild Horse wells, drilled in 2018, made viable hydrocarbon discoveries nevertheless – as is customary for ‘wild cat exploration’ the findings provided technical insights about the previously untested area.
Petro Matad on Wednesday told investors that samples from the Snow Leopard well provided geochemical evidence indicating that oil observed in drilling fluid was “derived and migrated from mature source rock.”
The explorer added that this news is very positive for surrounding prospects in the Taats basin.
It highlighted that there is a prospective geological trend some six kilometres from the Snow Leopard location which has now been “high graded” as a result of the new evidence of a working petroleum system.
This area of interest is referred to as the Raptor trend and the main prospect identified to date is being called Velociraptor.
Petro Matad said that Velociraptor is estimated as a possible 200mln barrel target whilst the Raptor trend altogether is presently viewed as having the potential for around 400mln barrels.
The company noted that it continues to evaluate the 2018 drill results which will in turn feed into the decision making for this year’s campaign – and, that Raptor/Velociraptor will be among the potential candidates for drilling.
Following a prospect ranking exercise, the explorer expects to decide on its drill targets by mid-2019.
“The ongoing evaluation of the 2018 drilling results has generated some exciting possibilities for follow up in Block V,” said Mike Buck, Petro Matad chief executive.
He added: “2019 is a key year for Petro Matad and we look forward to delivering the four well drilling programme and, with success, moving the Company towards commercialisation."