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Petro Matad lets Falcon go after finding 'smaller than anticipated' resource
Mongolian oil explorer Petro Matad will abandon drilling on its Falcon prospect after data implied a smaller resource than management had anticipated.
The AIM traded company will instead switch its attention to a "large and well defined" fault bounded structure shown by new data to potentially hold lacustrine turbidites and be of a significantly larger size than the Falcon Prospect, which lies nearby.
The new data stems from 3D seismic analysis of the Tugrug Basin, with interpretation of the data still ongoing.
Mike Buck, chief executive of Petro Matad, said: "The new mapping on the 3D indicates that we have some excellent targets but we do not wish to delay our exploration efforts in 2018 whilst they are matured to drillable status."
The 90 MMbo Snow Leopard prospect is the first target scheduled for spudding, with site civil works due to commence in May following the expected completion of permitting by the end of April, following this the 290MMbo Wild Horse prospect will be targeted.
"Snow Leopard and Wild Horse are two large, well defined and exciting prospects with huge follow up potential. As the firm two well programme for Blocks IV and V in 2018, they will tell us a lot more about the potential of the area and we are moving ahead rapidly with preparations to start drilling during this quarter," said Buck.
As of 0923 BST, Petro Matad's shares were down 7.23% at 11.55p.