Petro Matad Limited focuses on oil exploration, site development, and future production in Mongolia. The largest shareholder is Petrovis LLC, a Mongolian petroleum importer and distributor. Petro Matad is the first largely Mongolian-owned corporation to trade on any major international stock exhange, having been admitted to the Alternative Investments Market of the London Stock Exchange in 2008.
The principal asset of the group is a Production Sharing Contract (PSC) over Matad Block XX. This is a petroleum block covering 14,250 square kilometres in eastern Mongolia near the Chinese border. It is adjacent to Block XIX, which contains developed oil fields, and is believed to share part of that hydrocarbon system. The company has recently taken on additional PSCs on two other blocks (Block IV and Block V) covering another 71,000 square kilometres of central Mongolia.
Petro Matad has been exploring and surveying Block XX since 2006. They are advancing to the next stage of analysis on Block XX, while beginning early stage evaluation of Blocks IV and V.
The strategy of Petro Matad is to continue to explore and appraise Blocks XX, IV, and V while seeking further prospects and opportunities in the Mongolian oil sector. The company plans to keep an active interest in any commercially viable projects initiated in their PSC areas.
The strengths of Petro Matad include the lower cost of onshore exploration and development. The topography of its major asset, Block XX, is flat and the Group has identified multiple leads and prospects in the area for next-stage exploration. The target resources are believed to be at relatively shallow depths. Proximity to China means a ready and easily reached market for any resources developed.
Shares of Petro Matad Ltd (MATD) are listed on the London Stock Exchange’s Alternative Investment Market and were at 136.00 p as of 29 October 2010.