Petro Matad shares ticked higher after the Mongolia-focused energy firm released an update on operations and production at its wells.
The firm said its Heron-1 well continues to produce approximately 150 barrels of oil per day, with a stable water cut of around 3%. This rate isn’t a disaster, but it’s far from exciting as shares barely moved on the news.
However, the firm did say that the well’s pressure profile compares favourably with some of the better-producing wells in Block XIX, and no limiting faults or reservoir boundaries have been encountered to date.
Trucking and transfer operations at the Block XIX TA-1 facilities are running smoothly.
All in all, recent production will keep investors interested, but it’s far from fireworks for Petro Matad investors.
On the works programme front, construction has begun on a 1.2km overhead transmission line to connect Heron-1 to the national electricity grid, with completion expected by mid-October. This infrastructure work is targeted to deliver a 15% reduction in operating expenditure.
Meanwhile, the beam pump for Heron-2 is being refurbished ahead of installation, whilst the workover rig has mobilised to Gazelle-1. The production casing will be perforated across the oil-bearing zone before well test operations commence in early October, with completion anticipated within the same month.
“It is a very busy period for the Company at the moment. The focus in head office is on removing PetroChina’s withholding of revenue,” said Mike Buck, CEO of Petro Matad.
“We are encouraged by the recent progress on this and we are pushing to resolve the issue and to get paid in full. Meanwhile the team in the field continues to execute the 2025 work programme at multiple sites. I look forward to updating shareholders further as these matters progress.”
Regarding payments, the company received $110,000 net for July’s production in late September, with PetroChina withholding 30% of revenues. The August invoice remains overdue, though the buyer has indicated its new payment system issues have been resolved.