Block XX

Seismic and Geological Data:

  • 3,500km of 2D seismic (300km reprocessed in 2018/19), 133km2 3D seismic acquired over Davsan Tolgoi and access to 60 km2 of PetroChina 3D seismic over northern part of the block
  • Full coverage of land based gravity surveys at 2-4km intervals

 

Exploration Wells and Discoveries:

  • 12 legacy exploration wells drilled on flank of one sub-basin, proved moveable hydrocarbons and play potential, refocused strategy to target traps closer to the kitchen area
  • Heron-1 discovery made in 2019 drilling campaign. Commercial well test rates achieved. Competent Persons Report supports oil volume in the Heron Structure
  • Gazelle-1, c.5 km west of Heron-1, encountered oil shows and was suspended for potential well testing
  • Red Deer-1, Asgat Basin in southern Block XX drilled with oil shows proved active petroleum system

 

Reserves and Licensing:

  • Reserves Report and Plan of Development for the Heron-1 discovery approved by Mineral Resources Professional Council in early 2021
  • 25 Year Exploitation Licence covering 214 km2 of the northern part of Block XX awarded by the Minister of Mining and Heavy Industry in July 2021
  • Rest of Block XX exploration area relinquished

 

Operational Milestones:

  • In July 2023, Mongolian Cabinet approved Block XX exploitation area to be certified as Special Purpose Area which allows for the final agreements to be established with local governments to fully legalise access to the acreage for first oil operations
  • End of May 2024, agreement made with local government to allow access to the specific areas in Block XX which enabled operations to commence
  • Heron-1 well completion operations and installation of production facilities were completed October 2024
  • First oil from Heron-1 achieved on 24 October 2024. By late January 2025, Heron-1 production reached 20,000 barrels
  • Heron-2 appraisal well drilled, tested and suspended mid-November 2024
  • Gobi Bear-1 exploration well drilled and suspended by early October 2024
  • Block XX Special Purpose Area status obtained January 2025