The Petro Matad Ltd (LON: MATD) share price surged 64.4% after announcing that Mongolia's cabinet had approved the Block XX Exploitation Area certification, including the Heron oil discovery, as special purpose land.
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Investors cheered the announcement as it now paves the way for the company to move ahead and develop the project. The certification of Block XX as special purpose land gives the Company the legal right to access the entire area for hydrocarbon exploration and exploitation.
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Petro Matad has been waiting for all the necessary approvals, including feedback from all other ministries, which the Ministry of Construction and Urban Development considered before submitting the documentation to Cabinet for approval.
The proposed certification was discussed at the Cabinet’s meeting on 5 July 2023, with the Cabinet approving the certification and instructing officials to conclude the follow-up formalities required under the Land Law.
Petro Matad will now work with the central Land Agency and local authorities to complete the registration of the area and to sign the necessary contracts required by the regulations on the management of special purpose land.
At the same time, the company is already discussing with service providers to determine when crews and equipment will be available to complete the Heron 1 well for production purposes.
Today’s announcement is a big win for Petro Matad as the company can now go ahead and develop the Block XX Exploitation Area and even start producing hydrocarbons from the area.
Mike Buck, Petro Matad’s CEO, said: “We are very pleased that the Cabinet has approved the certification of Block XX as special purpose land. This important step has been a very long time coming but now provides a firm legal standing to the Company to execute the approved plan of development for Heron and to explore the exciting potential around it.”
“I would like to thank all our shareholders, and in particular those that have been with Petro Matad for some years now, for their patience during this protracted certification process, and I look forward to sharing further updates as we move into the next phase.”
*This is not investment advice.
Petro Matad share price.
The Petro Matad share price surged 64.36% to trade at 6.41p, from Wednesday’s closing price of 3.90p.
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