Petro Matad announces extension of Block XX contract until 2020
Oil explorer Petro Matad Ltd, listed on the Alternative Investment Market ( AIM) of the London Stock Exchange, announced on January 5 that it was able to receive an extension on the production sharing contract for Block XX situated in the far eastern part of Mongolia.
The contract was extended to July 4, 2020 by the Mineral Resource and Petroleum Authority.
Petro Matad wholly owns three blocks in central Mongolia covering more than 60,000 square kilometers, and more than 21,000 square kilometers of prospective basins.
"This is a very positive development and again indicates the support for Petro Matad within the relevant government departments in Mongolia,” said Chief Executive Mike Buck.
"It is also significant in that Block XX contains considerable prospectivity close to Petro China's production infrastructure which is in operation immediately to the north."
Petro Matad added that it will be announcing details of its work programs for 2018 and 2019 in due course. Shares in the company were on the AIM were down 0.5 percent on Friday morning at a price of 10.70 pence each.