Shares of Petro Matad Limited (AIM: MATD, OTC: PRTDF) took a 10% hit in the early trading hours of Monday, following the announcement that its Velociraptor-1 exploration well, situated in central Mongolia, did not yield expected results.
In a public statement, the exploration firm reported that despite drilling down to a depth of 1,500 metres, the well only encountered water-bearing reservoirs.
The next steps for the unsuccessful Velociraptor-1 well are to plug it, abandon the site, and demobilise the rig.
The company confirmed that the operations proceeded according to schedule and budget, with substantial support and cooperation from the local community.
Mike Buck, Petro Matad’s CEO, commented on the disappointing outcome, “The Velociraptor 1 well’s results are obviously not what we hoped for, but in frontier areas, high-impact targets that are modestly priced cannot be overlooked. Despite the setback, the well provides crucial new data to help reveal the hydrocarbon potential of the southern Gobi region.”
Buck stated, “We will now integrate these findings into our comprehensive evaluation of the area. Simultaneously, our operational emphasis will return to Block XX, where the Heron development promises imminent oil production and revenue generation.
Additionally, this block presents low-risk, near-field exploration opportunities that hold promising upside potential.”
