Petro Matad Limited (AIM: MATD) shares ended the day 16% higher after the company announced it has received the full $1.03 million in production revenue that had been withheld by PetroChina during 2025, and is now finalising its 2026 Oil Sales Agreement.
The company said production at Block XX from the Heron-1 well averaged 161 barrels of oil per day in 2025, outperforming expectations. Meanwhile, Gazelle-1 is currently producing around 135 barrels per day, with water production being successfully managed.
Petro Matad also noted that farm-out discussions for Block XX are close to completion, while progress continues on its planned 200MW hybrid renewable energy project. Feasibility studies have been submitted for approval, with the project targeting Ready-to-Build status in 2026.
Key updates
· All production revenue withheld by PetroChina during 2025 has been paid – totaling $1.03 million.
· The wording of the contract to cover the 2026 Oil Sales Agreement is being finalised.
· Block XX production continues in line with expectations.
· Farm-out discussions with one counterparty are nearing completion.
· The 200MW Hybrid renewable energy project is progressing well.
Mike Buck, CEO of Petro Matad, said:
“We are very pleased to have been paid all the revenue from our 2025 production invoices. We are working directly with the PetroChina Finance Department to finalise the wording of the 2026 Oil Sales Agreement.
We are encouraged by the progress SRE is making on the 200MW Hybrid project which we think has a good chance of reaching Ready-to-Build status during the year. Our portfolio of projects is well-positioned in Mongolia’s emerging renewables, green hydrogen and battery storage sectors, while ongoing government discussions are underlining the country’s exceptional potential as a competitive clean-energy exporter in the region. “
Further operational updates will be provided in due course.
