Petro Matad announces successful Heron-2 drilling results

1st Oct 2024 16:54

(Sharecast News) - Mongolian oil company Petro Matad announced successful drilling results from its Heron-2 well, located in Block XX in the Tamsag Basin, eastern Mongolia on Tuesday.

The AIM-traded firm said the well, the first development well in the Heron Oil Field, reached its total depth of 2,908 metres seven days ahead of schedule, following a smooth drilling operation.

It said the well encountered an oil zone with a gross thickness of 18 metres, likely in the same stratigraphic unit as the successfully tested Heron-1 discovery well.

Wireline logging results indicated that oil was present throughout the interval, with net oil pay estimated at more than five metres.

The sandstone encountered in Heron-2 is positioned 16 metres shallower than in Heron-1, and similar permeability characteristics were observed, suggesting strong potential for oil flow.

Production casing had been run, and preparations were underway for a well testing and stimulation programme.

The company aimed to achieve a commercial flow rate and, if successful, intended to bring the well on stream before the winter operational shutdown in late November, weather permitting.

Well test operations were expected to be completed by the end of October, despite recent logistical challenges caused by heavy rains in the area.

Petro Matad said it remained focussed on expediting the testing process to determine the full commercial potential of the Heron-2 well.

"We are encouraged by the results of Heron-2 so far," said chief executive officer Mike Buck.

"Reservoir variability is one of the main uncertainties in the Tamsag Basin, so to have found what looks very much like the same unit in Heron-2 that proved productive in the Heron-1 discovery well is pleasing.

"Testing operations will determine the well deliverability and the forward programme thereafter - we are keen to maintain the momentum generated in the last few months."

At 1344 BST, shares in Petro Marad were down 0.66% at 2.24p.

Reporting by Josh White for Sharecast.com.