About Petro Matad

Petro Matad is a company focused on delivery of energy in Mongolia from both the hydrocarbon and renewables sectors. In Mongolia’s hydrocarbon sector the group holds 100% working interest and is the operator of Production Sharing Contracts (PSCs) over the following areas:

  • Matad Block XX, with an exploitation area of 214km2 in the far eastern part of Mongolia adjacent to the country’s main producing oil fields
  • Ongi Block V, with an exploration area of 7,937km2 in central Mongolia

 

The group is currently prioritizing the development of the Heron oil discovery in Block XX but continues to seek new opportunities in the energy sector of Mongolia in both conventional hydrocarbon exploration and production activities but also in the renewable energy sector to compliment the current acreage portfolio.

 

Since its formation in 2005 Petro Matad has been an active oil explorer in Mongolia drilling a total of 17 exploration wells, 4 stratigraphic coreholes, acquiring over 6000 km and 300 km2 respectively of 2D and 3D seismic data and performing numerous field studies across the country. These activities culminated the Heron-1 discovery in 2019 and the award of the Block XX Exploitation Licence in 2021, only the third exploitation licence ever issued in Mongolia. Petro Matad’s efforts have been recognized by the State with the award of ‘Leading Petroleum Exploration Company’ in 2019 and ‘Best Entity’ in 2021.

 

Petro Matad’s initial exploration focus was Block XX where following both 2D and 3D seismic acquisition during the 2007 to 2011 field seasons, a total of 11 wells were drilled across the large Davsan Tolgoi high. This large feature is immediately south of proven oil fields in PetroChina’s operated Block XIX some of which appeared to extend onto the high. A number of wells had good oil shows during this drilling campaign but subsequent well tests in late 2011 and re-mapping of reprocessed 3D seismic data showed these to be small and non-commercial.

 

In 2010 the first ever 2D seismic survey was acquired in central Mongolia across Petro Matad’s Blocks IV and V. These data identified a number of basins and field work and laboratory analysis of field samples showed the presence of source rocks in these basins. Further infill 2D and 3D seismic acquisition in the following field seasons to 2017 identified a number of drilling candidates with two matured to drilling locations on which the Snow Leopard-1 and Wild Horse-1 wells were drilled in 2018, the first ever wells drilled in Mongolia’s Valley of the Lakes. These wells proved the presence of working petroleum systems and high-graded areas of Block V which were retained for future drilling with the remaining acreage relinquished. In 2023, Petro Matad drilled Velociraptor-1 to a total depth of 1500 m but unfortunately although thick reservoir sections were encountered these were all water bearing and the well was plugged and abandoned. Studies are ongoing to determine the impact of the 2023 well results on the prospectivity of the Valley of the Lakes basins.

 

In 2018 Petro Matad secured access to PetroChina acquired 3D seismic data that extends into the northern part of Block XX which confirmed the extension of the 19-46-3 oil accumulation into Block XX that had not been clearly illuminated on 2D seismic. The 2019 drilling campaign proved a commercial oil accumulation with the Heron-1 well and oil bearing sands in the Gazelle-1 well both drilled inside the area of 3D seismic coverage. The Red Deer-1 well drilled in the Asgat Basin in the southern part of the Block XX proved the presence of oil source rocks in this previously undrilled basin. Following approval of both a Reserves Report and Plan of Development for the Heron-1 discovery, a 214km2 Exploitation Licence covering the Heron structure and including the entire southerly extension of the proven prolific Toson-Uul sub basin was awarded in July 2021 and the rest of Block XX was handed back to the government at the end of the exploration period of the PSC.

 

The company’s focus is to achieve first oil from the Heron field as soon as all the necessary permits have been secured and to start operations to drill additional development wells.

 

MRPAM’s Tender Round for new exploration licences commenced in late 2022 with a total of 14 blocks made available across the country in both proven hydrocarbon bearing basins and those with little or no exploration activity in them to date. Petro Matad has evaluated the prospectivity of all the blocks announced in the Tender Round and are in negotiations with government on several blocks that it considers the most prospective.

 

In early 2023, working with a proven local developer of projects, Petro Matad established a joint venture company called SunSteppe Renewable Energy to pursue energy generation and storage projects in the rapidly growing renewable energy sector in Mongolia where huge potential exits. The joint venture is working to develop several projects to construction ready status with project scale ranging in size from tens to hundreds of megawatts.

Our Strategy
  • Maximize and deliver value to shareholders through commercial investment in the development of energy projects in Mongolia
  • Invest in people and in-house professional competency
  • Assemble geoscientists and engineers with proven track records of finding and developing hydrocarbon and renewable energy projects
  • Apply modern up-to-date scientific technologies to decarbonize operational activities as much as possible
  • Implement best practice operational work flows in all projects
  • Apply a critical commercial approach to rank potential investment opportunities
  • Identify critical technical and commercial risk elements and appropriately de-risk before making final investment decisions
  • Conduct all operations compliant with international HSSE standards and maintain responsible community relationships
Our Strengths

Prominent Mongolian Operator – Petro Matad has been the most active Mongolian independent operator over the last decade exploring in both frontier and mature petroleum provinces and the first independent Mongolian company to be awarded an Exploitation Licence to develop new resources.

The company has performed extensive field studies, has acquired seismic data and drilled exploration wells proving the existence of active petroleum systems in hitherto undrilled frontier basins while also successfully securing an Exploitation Licence to develop proven oil reserves in a more mature basin.

Diverse Opportunity Portfolio  Petro Matad aims to operate and participate in the development of energy projects that are in areas of low commercial risk but also in less mature areas where commercial risk is higher but where significant upside value and running room exists.

Operational Capacity – Proven capability to conduct operations in remote and logistically demanding conditions in Mongolia with excellent HSSE performance.

Experienced Management and Technical Team  Management team is both well respected in-country and in international investment markets and the technical team has  local knowledge which is second to none and experience with a proven track record of identifying and developing energy projects.

Experienced Board of Directors  The Board of Directors has a successful track record both within Mongolia and internationally.

Near Term Development Potential  The company has the experience and track-record to efficiently bring successful exploration and renewable projects to development phase.

Production Sharing Contracts (PSCs) The fiscal terms of Mongolian conventional hydrocarbon PSCs and renewable energy contracts are very competitive when compared to the global market.

Proximity to the Chinese Energy Markets  There are proven and well established markets in China which apply globally traded commodity prices for energy export from Mongolia. Mongolia also has the aspiration and the funding to re-establish a domestic oil refining capacity and construction is underway with completion forecast in 2027.

Petro Matad Group has established itself as one of the leading companies in Mongolia in terms of governance, sustainability and anti-corruption and operates in accordance with international and Mongolian laws, regulations, standards and guidelines. Petro Matad applies modern advanced technologies and techniques in its operations and adheres to best international practices in all spheres of its activities. The team consists of competent and highly qualified Mongolians and multinational staff and consultants. The team has delivered significant results to date and strives to add value to its operations and assets.

Country of Incorporation and Country of Operation

The company was incorporated in the Isle of Man under the Isle of Man Companies Act 2006 on 30 August 2007 with registered number 1483V under the name Petro Matad Limited and the Group’s operations are managed from its operations office in Ulaanbaatar, the capital of Mongolia.

 

The company’s Articles of Association and Memorandum of Articles can be viewed here.