Petro Matad Limited delivered its strongest production month to date in November 2025, supported by the start of output from the Gazelle-1 well alongside steady performance at Heron-1.
Re-testing at Heron-2 was suspended for the winter after slow refill rates, with further technical assessment planned.
The company also reported solid progress in finalising its Oil Sales Agreement with PetroChina, aimed at resolving outstanding revenue withholding. Only a minor tax matter remains, and preparation of the 2026 agreement is under way.
On the portfolio front, Petro Matad has received a farm-in proposal for Block XX and is continuing discussions, while also engaging with other interested parties. Meanwhile, its renewable energy arm, SunSteppe Renewable Energy, is advancing three projects, with a 200MW hybrid development targeted to reach ready-to-build status in 2026.
Key updates
· Heron-1 and Gazelle-1 have produced well through November making it Petro Matad’s most productive month to date.
· Heron-2 re-test shut in for the winter.
· The rewording of the Oil Sales Agreement is being finalised with PetroChina in order to remove its partial withholding and secure payment of the withheld amount. Only the matter of tax on processing fees remains to be resolved and this is relatively minor. The 2026 Oil Sales Agreement is being prepared incorporating the amendments to the 2025 contract.
· A proposal to farm-in to Block XX has been received and is under discussion.
· SunSteppe Renewable Energy is progressing three projects and is focusing efforts to expedite its 200MW hybrid project to ready-to build-status during 2026.
Mike Buck, CEO of Petro Matad, said:
“We have had Petro Matad’s most productive month to date as a result of Gazelle-1, our second producer, coming onstream and we are delighted to have established reliable operations and export of this production before the onset of winter. We are also pleased to have seen tangible progress in resolving the issue of the revenue withholding with PetroChina.
On the project to farm out Block XX, we are encouraged by the progress and by the proposal we have received. We are working hard to secure a good deal for Petro Matad and in parallel we continue to work on engaging counterparties that may be interested in Block VII and will update shareholders as we progress.
SRE is making quite an impact on the Mongolian renewables scene and whilst some of the projects have moved more slowly than we had hoped, we are very hopeful that the 200MW Hybrid project with TME can be brought quickly to ready-to-build status during the coming year.”
Further operational updates will be provided in due course.
