Mongolia explorer Petro Matad said Shell has officially exited from blocks

Oyundelger 2017-02-02 06:02

Mining

Mongolia explorer Petro Matad said that all contractual and regulatory requirements in relation to Shell's exit from Blocks IV and V in Mongolia have been completed and that Shell has officially exite

Mongolia explorer Petro Matad said that all contractual and regulatory requirements in relation to Shell's exit from Blocks IV and V in Mongolia have been completed and that Shell has officially exited from the blocks. Petro Matad has therefore confirmed that it now holds 100% of Blocks IV and V. In preparation for its drilling program on blocks IV and V expected to commence in mid-2017, Petro Matad last week issued a tender for a drilling rig and related services. It received an initial $10mn payment from Shell in 2016. Including the latest $5mn payment, Petro Matad's current cash balance is $11mn. The initial eight-year terms for Blocks IV and V expire on July 29 2017 but the company is confident of securing an extension ahead of the start of drilling. As such, it says it continues to seek a farmout partner and says interest has been shown in a potential farm into blocks IV, V and XX. The company has not indicated if the exploration is directed at oil or gas.