Petro Matad provides update on Mongolian 3D seismic program

MONGOLOIA -- Petro Matad, the AIM-quoted Mongolian oil explorer is pleased to provide an update on its 3D seismic acquisition program.

The planned 3D survey, which focused on defining and de-risking near term drilling targets within the Tugrug Basin has been completed. All the company’s technical objectives were met during the 3D acquisition and preliminary processing (in field) has confirmed excellent data quality. The full 3D dataset has now been transmitted to the processing contractor, Western Geco and full Pre-Stack Time Migration (PSTM) and Pre-Stack Depth Migration (PSDM) processing is underway. Expected turnaround time will be mid-first-quarter 2018 for final PSTM data and end-first-quarter 2018 for full PSDM data.

The Tugrug basin has a proven working petroleum system which was confirmed with a stratigraphic core hole drilled by the company in 2011 near the basin margin. The core hole contained live, un-biodegraded oil in good quality sandstone reservoir. The newly acquired 3D data will enable the company to optimize the drilling location in the Falcon prospect, a target for the 2018 drilling program.

The company had initially planned to proceed with a small 2D seismic acquisition program in the Tugrug basin following the completion of the 3D survey. However, as this 2D program was designed to identify additional prospects and leads for potential drilling beyond 2018, and therefore does not impact the choice of locations for the 2018 drilling program, the company has decided to not acquire the Tugrug basin 2D seismic at this time. A factor in this decision is that the Mongolian winter has been harsh and there are only a few grazing lands still accessible to livestock, one of which is in the area where the Tugrug basin 2D survey was planned. Herders and their livestock have therefore entered the area in large numbers. The company therefore felt it prudent to postpone the 2017/18 Block V 2D seismic program.

The seismic crew has mobilised to Block IV and has commenced the planned 204 km 2D seismic acquisition program over the Khangai basin in the northern part of Block IV, which is anticipated to complete by early February 2018.  This survey aims to better define, for potential drilling in future, certain attractive leads identified on regional 2D seismic, gravity and magnetic surveys acquired in 2015.