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 main sub-basin, these proved moveable hydrocarbons and play potential, refocused strategy to target traps closer to the kitchen area
  • Heron-1 discovery made in 2019 drilling campaign. Well tested at commercial rates. 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 in this sub-basin

 

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 a Special Purpose Area which allowed final agreements to be established with the local government to fully legalise access to the acreage for first oil operations
  • End May 2024, agreement made with local government to allow access to specific areas in Block XX which enabled first oil operations to commence
  • Heron-1 well completion operations and installation of production facilities were completed in 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
  • Formal Block XX Special Purpose Area status obtained January 2025