Petro Matad Finds Oil In First Davsan Tolgoi Exploration Well In Eastern Mongolia
July 13 (Proactive Investors) Petro Matad (LON:MATD) has encountered oil shows through the drilling of the Davsan Tolgoi-1 (DT-1) exploration well which is expected to reach total depth within the next week to ten days. The well is the first to be drilled as part of the 2010 drilling programme on Block XX in Eastern Mongolia.
Investors were pleased with the news, sending shares up more than 13 percent in early afternoon deals.
The company said that good to fair hydrocarbon shows were encountered, near the top of the Lower Zuunbayan Formation, in an 8 meter-thick sandstone zone. Drilling has temporarily paused at 1,093m for a bit change and it will subsequently continue to a depth of 1,440m. The company noted that no testing is scheduled at the current horizon.
"These shows are encouraging because the Lower Zuunbayan and Upper Tsagaantsav formations are considered secondary objectives for this well,” Petro Matad chief executive Douglas McGay said. “The well is currently 22m high to the 3D seismic prognosis toward the deeper Lower Tsagaantsav Formation that remains the company's primary objective for DT-1.
"Mogi" Munkhdul Badral
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