Highlights

  • Gazelle-1 well starts production at 200 barrels per day, first shipments delivered for export.
  • Heron-1 reaches first anniversary, producing nearly 60,000 barrels with stable water cut.
  • Heron-2 re-test resumes after temporary flow drop, further assessment planned for winter.

Petro Matad Limited (LSE:MATD) the AIM-listed Mongolian oil company, has brought its Gazelle-1 well into production following successful testing in October. The well has been connected to surface facilities, with crude shipments delivered to Block XIX TA-1 processing and export infrastructure under the existing Oil Sales Agreement with PetroChina.

The initial production rate has been set at 200 barrels of oil per day (bopd) based on pressure analysis during the test. Production will be closely monitored to determine if output can be safely increased. A conservative start-up has been adopted to limit the risk of early water breakthrough, as the well’s distance from the oil-water contact remains uncertain. Data from Gazelle-1 will help refine reservoir estimates and guide potential future appraisal well locations.

Heron-2 Re-Test Progress
Operations at Heron-2 have resumed after temporary pumping highlighted a drop in flow, possibly due to downhole mechanical issues or perforation obstruction. Initial recovery of injected fluid was faster than previous swabbing operations, with a rising proportion of oil. Pumping was temporarily halted to realign the beam pump, and operations have now restarted. If fluid recovery remains below expectations, the well may be shut in for the winter to allow evaluation of further remediation options.

Heron-1 Production Update
Heron-1 marked its first year of production on 24 October 2025, delivering a total of 59,920 barrels of crude over 298 shipments. Average daily production over the year was 164 bopd, with a stable water cut of approximately 3%. Current production stands at around 145 barrels per day, in line with basin-wide trends and comparable to leading producers in the region.

The connection to the national electricity grid is complete but awaiting regulatory approval from the provincial governor, with the Mineral Resources and Petroleum Authority of Mongolia assisting in expediting the process. Until approval, power continues to be supplied by the onsite generator, ensuring uninterrupted operations.

Oil Sales Agreement and Payments
Payments under the Oil Sales Agreement with PetroChina are up to date through August 2025. Invoices for September and October have been submitted for processing. Discussions are ongoing regarding rewording the agreement to secure full payment of amounts withheld to date.

Share performance of MATD

MATD’s shares traded at GBX 1.34 per share on 05 November 2025, down by 15.11% from its previous close of GBX 1.58.