Petro Matad (MATD) Shares Fell 10.5% on Velociraptor Well Spud

The Petro Matad Limited (LON: MATD) share price fell 10.5% after announcing that it had spudded the Velociraptor-1 exploration well in the Taats Basin of Block V in central Mongolia on 13 June 2023. 

The well’s spudding marks a crucial milestone for Petro Matad, given that the well is located 7km south of the Snow Leopard-1 well, among the Raptor Trend of prospects, of which it is the first. The Snow Leopard-1 well was drilled in 2018 and proved a working petroleum system in the Taats Basin.

The Velociraptor-1 well targets an inversion anticline prospect estimated to have 200 million barrels (MMbo) of Mean Prospective Recoverable Resource potential and is planned to drill to a total depth (TD) of about 1,500 metres. 

The well is expected to take approximately 30 days to reach TD, and encouraging results in the Velociraptor prospect would significantly de-risk two adjacent prospects on the Raptor Trend. Together the additional prospects have a Mean Prospective Recoverable Resource potential of an extra 375 MMbo.

Regarding its Block XX exploration license, Petro Matad noted that the Ministry of Construction and Urban Development had completed its internal work certifying the Company's Exploitation Area as special purpose land. 

The ministry then submitted the documentation to all other government ministries for comment before submission to the Cabinet for final government authorisation and approval. The company is in talks with the relevant authorities to conclude the approval process. 

Petro Matad issued an update on 22 May 2023 about the rig's arrival that would be used to drill the Velociraptor-1 well, which was meant to start in the first half of June. The company also noted that it had mobilised construction equipment to the site. 

*This is not investment advice. 

Petro Matad (MATD) share price. 

The Petro Matad share price fell 10.53% to trade at 4.25p, from Tuesday’s closing price of 4.75p.