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.
Lansdowne Oil and Gas Plc is an Irish independent oil and gas exploration company. An operator of its own exploration drilling, the company is not involved in any production drilling activities. The company’s business is solely in exploration and appraisal. So far it has been very geographically focused, pursuing opportunities in the North Celtic Sea Basin (NCEB) off Ireland’s southern cost. It holds rights to three standard licences and one licensing option. The agreements mainly covers the shallow waters of the NCSB that is proven in oil and gas prone.
North Celtic Sea vs. North Sea
Lansdowne Oil and Gas Plc has purposely targeted the Irish offshore shallow shelf areas for exploration and exploitation. Comparing to the busy activities in the neighboring North Sea, the proven oil and gas productive NCSB is still relatively under explored. Besides, shallow water drilling always provides a low cost environment. Considering both factors, the company expects to achieve higher returns on investments in the medium term. With a knowledgeable and experienced management team and the technical force that is supported by the company’s comprehensive database, Lansdowne is very competitive within the industry in the North Celtic Sea region.
Long Term Commercial Oil vs. Near Term Shallow Gas
Lansdowne Oil and Gas Plc continually evaluates drillable and quality prospects on its licensed areas. Three oil exploration wells have been successfully drilled and tested with positive oil flows. The drilling areas are proven oil productive horizons that are right beneath a gas field discovered in the 1970s. The company’s gas exploration and appraisal assets sit on both sides of a gas field operated by the integrated oil giant, Marathon Oil of U.S. other gas positions also include some identified Jurassic exploration targets.
Shares of Lansdowne Oil and Gas Plc (LOGP) are listed on the London Stock Exchange’s Alternative Investment Market and were at 5.50p as of 10 August 2010.
Irvine Energy Plc is an independent oil and gas exploration and production company focused on the development of onshore projects, both conventional and unconventional. Incorporated in the UK, the company operates exclusively in the U.S., currently working on projects within the highly prospective Kansas/Oklahoma region. Historical production in the area dates back to the 1800’s and cumulative outputs are in the billions of barrels and trillions of cubic feet for oil and gas respectively. The company currently has interests in three projects, the Niobrara project in Kansas, the Kansas project, and the Oklahoma project, jointly developed with one local partner who is also the operator for all projects. By combining conventional and unconventional plays, the company hopes to assemble a balanced portfolio of low risk and high capital yet efficient programmes.
Irvine Energy has 50 percent interest in the Niobrara project, which holds mainly shallow chalk gas. About one hundred wells have been drilled progressively over the years and many have quickly come on line to sales. The shallow nature of the gas formation makes it possible that the wells can be drilled and completed in surprisingly short periods, even less than a week, at very low cost.
75 percent interest has been obtained by the company in the Kansas project. The project includes many oil-rich areas that have a prolific oil production history. What it has been lacking is the application of the state-of-the-art exploration technique, like 3D seismic. This provides significant upside potential for Irvine Energy as an exploration company. Various exploration drilling has been initiated and surveys have identified several prospects.
The company holds also 50 percent interest in the Oklahoma project, which contains both conventional oil and unconventional gas. Some over 20 conventional production wells were included when the company purchased the property. Currently the company is focused on areas where unconventional shale gas exists. Vertical wells, and horizontal ones are being planned. Successful development of the shale could be huge with an estimate of net recoverable of over 200 billion cubic feet of gas.
Shares (IVE) of Irvine Energy Plc is currently delisted from LSE’s AIM sub-market.