Petro Matad announced the results of drilling and logging operations at the Gazelle-1 well in the Block XX on 17 October 2019.The Gazelle-1 well has been drilled to a TD of 2550 m and wireline logging has been completed.   The well hit Lower Tsagaantsav reservoir objective at 2280 m, 20 m deeper than the pre-drill prognosis. The interval penetrated in the objective Tsagaantsav formation by the well was shale dominated and no hydrocarbon pay was identified on the logs.  In the Upper Tsagaantsav reservoir objective, the well encountered good wet gas shows throughout a predominantly shale prone section and log data defined 3 m net oil pay in good quality sandstone.  Petro Matad pre-drill interpretation for this area highlighted the possibility for a 'pinch-out' of the Lower and Upper Tsagaantsav sands, which could set up potentially material stratigraphic traps in the southern extension of the Tamsag Basin. The Gazelle-1 information will help better define these traps and their potential size within Block XX.   Casing is now being run on Gazelle-1 and the well will be suspended pending further evaluation.  Petro Matad spudded Gazelle-1, a NFW, in the Tamtsag Basin on 19 September 2019. The well is located in Bloxk XX, 4.5km southwest of Petro China's T19-46-1 oil well, and is targeting the Tsagaantsav Formation of the Upper Jurassic - Lower Cretaceous clastic play within the area.   The Gazelle Prospect is a fault bounded structure immediately updip of proven oil generating kitchen area in Block XIX where PetroChina has fields on producing. The prospect has an estimated Mean Prospective Recoverable Resource of 13 MMbo.   Gazelle-1 has a PTD 2,500 m.  Petro Matad has a three wells programme planned in 2019 in Block XX. The first well, Heron-1, has been completed with oil and shows in early September 2019.  Red Deer 1 is the second well in Block XX, which was completed in mid-September as a dry hole.  Gazelle-1 is the third well of the drilling programme.   Background Information  Petro Matad awarded PSCA block XX in 2006. In September 2011, the company has received approval from the Petroleum Authority of Mongolia (PAM) to have a two-year extension to its Production Sharing Contract (PSC) on Block XX.  In August 2012 Petro Matad extended Block XX for five years until July 2017.  In 2016, Petro Matad reported that the PAM provided a one-year moratorium on Block XX at the companyâs request, which freezes for one-year obligations that would have normally been incurred, while at the same time extending the current license period to July 2018. The moratorium enables the company to focus on Blocks IV and V work programmes in the immediate term.  Petro Matad announced on 5 January 2018 that it has been formally extended its PSC Block XX for a further two years to 4 July 2020. The company reported this is a very positive development and again indicates the support for Petro Matad within the relevant government departments in Mongolia. It is also significant in that Block XX contains considerable prospective exploration potential close to Petro China's production infrastructure which is in operation immediately to the North.  Petro Matad has drilled 11 wells in Block XX between 2010 and 2011. The disappointing drill and test results have resulted in the downgrading of the prospectivity of the Davsan Tolgoi Anticline and drilling and seismic activities will be suspended while further studies are performed. A decision was made in May 2012 by the company that no further drilling or testing will be conducted on Block XX on the status of its review of its 2010 and 2011 drilling programme in Block XX in the Mongolia.   In addition to Block XX, Petro Matad also holds Block IV and V in the Central Gobbi area. Petro Matad completed two NFWs in 2018 with drilling objective in the Jurassic â Cretaceous Play, but the both wells are failed to achieve oil/gas discoveries. The first well, Snow Leopard-1, is situated in Block V in the Taats Basin, as a basin play opener, was spudded on 9 July 2018 and completed reaching a TD of 2,930 m as a dry hole on 20 September 2018. The second well, Wild Horse 1, is situated in Block IV in the Baatsagaan Basin, was spudded on 23 October and completed reaching a TD of 1,490 m as a dry hole on 26 November 2018.
Gazelle 1 nfw (Petromatad 100%) in NE part of block XX, in NE Mongolia, west of recent Heron 1, target L. Tsagaantav dry, gas shows in the U. Tsagaantav + 3m net oil pay, well to be suspended pending evaluation of results. 