Assets Overview

  • Holds 100% interest in 3 PSC Blocks (IV, V and XX) totalling more than 60,000km2 and more than 21,000km2 of prospective basins
  • Completed 7 exploration seasons over these assets assembling an excellent database and robust assessment of the prospectivity
  • Latest exploration cycle has demonstrated the key components of working petroleum systems over vast undrilled tracts of frontier acreage and proven moveable hydrocarbons in emerging basin areas
  • Planning first high-impact wildcat drilling targets, to commence in 2017 in the frontier western blocks

Petro Matad has been one of the most active exploration companies in Mongolia since 2005.  The Company holds a prominent position in the frontier and emerging hydrocarbon basins of Mongolia. The Company has three Production Sharing Contracts, which are all in the exploration stage: Blocks IV, V and XX, covering a total area of 60,340 km2. The company initially established a foothold in the country through its active exploration campaign in Block XX.

 

Blocks IV and V, located in the undrilled frontier area of western Mongolia, have been systematically evaluated over the last 6 years by the Company.

 

The initial exploration work commenced on Bogd Block IV and Ongi Block V in 2009 with the acquisition of regional gravity data and acquisition of reconnaissance seismic lines across the potential basins identified by the gravity data. These blocks had never previously been seriously explored for oil and gas; consequently, there was no subsurface information of any description.  The early exploration work identified potential basins; and exposed outcrops at the basin margins provided the easiest way to collect data on potential reservoir and source rocks.  Exploration field work resulted in the discovery of world-class oil shale deposits, which demonstrated the existence of potentially rich source rocks across the blocks.

 

The Block IV and V database consists of 4,200 kms of 2D seismic, the first acquired in the region; 11,000 km2 of airborne acquired FTG & HRAM, also the first acquired in the region; continuous core recovered from drilling of two deep continuous stratigraphic holes (3000m total; 1400m and 1600m each); data obtained from extensive field work campaigns; and analysis of samples collected from various sites in the blocks.

 

Based on the two deep core-holes, which had oil shows and analysis of outcrop samples the primary petroleum system identified in these blocks is well defined and is directly analogous to the Upper Jurassic-Lower Cretaceous systems that have been proven in basins of eastern Mongolia (Tamtsag, East Gobi) and eastern China (Hailar, Erlian, and Songliao). Petro Matad’s exploration work has also revealed potential for a second, deeper petroleum system, Permian-Jurassic in age, analogous to the prolific systems of the western Chinese basins (Junggar, Santanghu and Turpan).   The 2015/2016 seismic and FTG & HRAM acquisition programs was focused on high-grading prospective basins, maturing and de-risking leads to drillable prospects, two of which will be drilling in the 2017 “Basin Opener Wildcat Well” drilling campaign.

 

Block XX is adjacent to the main producing province of Mongolia, the Toson Uul Graben of the Tamtsag Basin in Block XIX. The proven and producing main petroleum system is the Upper Jurassic-Lower Cretaceous play. The initial exploration campaign in Block XX consisted of re-processing limited vintage seismic data and acquisition of 2D and limited 3D seismic surveys. The Block XX database includes 3853 km of 2D seismic, 133 km2 of 3D seismic and full block coverage by conventional gravity data.

 

Eleven wells were drilled in 2010/11 on the Davsan Tolgoi structural high with uncommercial hydrocarbon shows being encountered in most of the wells, but no commercial discovery was made.  To the southwest of Block XX’s Toson Uul play area, several more prospective frontier basins have been discovered on coarse 2D seismic and gravity data. These basins remain undrilled, but are on trend with, and have similar stratigraphic and structural styles to the proven systems of the Hailar and Tamtsag Basins of China. Further seismic is required to mature the identified lead areas in the Block XX frontier acreage into drillable prospect portfolios.

 

With the knowledge gained from this drilling program and re-evaluation of the play and petroleum system, the company’s exploration strategy in Block XX is now focused on the continuation of the producing basin from the adjacent Block XIX and new basins identified in the central and southern part of the block.  The Company is confident that further drilling to the west of Davsan Tolgoi would have a high probability of encountering producible hydrocarbons.

 

The Company has adopted a Play Focused Exploration strategy across its diversified portfolio; focusing on the exploration potential of the Block XX emerging basins as well as Blocks IV and V. This enables a more strategic view to be taken on all three blocks.