LONDON (Alliance News) – Petro Matad Ltd on Friday said it has be sent an “official letter” from authorities in Mongolia outlining the country’s intention to extend the production sharing contracts for Block IV and V by two years.
The oil and gas firm said the letter said the intention is to extend the PSCs to July 29, 2019. The letter has been sent by the Mining Resources & Petroleum Authority of Mongolia and states that it “sees no objections or issues in the extension and is currently undergoing the administrative process of the extension.”
“Petro Matad is of an opinion that the administrative process is in advances stages and expects the formal extension to be issued by Mining Resources & Petroleum Authority of Mongolia within the next month,” said the company.
Petro Matad reiterated that it is continuing to negotiate the contract covering the use of a drilling rig and he provision of associated services, and said it hopes to name the successful bidder “within the next two weeks”.
“Rig-mobilization to the first drilling site will commence within four-weeks of contract award. The company remains on track to drill two exploration wells in 2017,” said the company.
Petro Matad also updated shareholders regarding a potential farm-out, and said its farmout and funding processes are ongoing and that the business continues to be in in active discussion with a number of parties.
Petro Matad shares were up 1.9% on Friday at 27.25 pence.
By Joshua Warner; email@example.com; @JoshAlliance
Copyright 2017 Alliance News Limited. All Rights Reserved.