Petro Matad reported on 9 September 2019 that Heron-1 has reached a TD of 2,960 m with oil and gas shows in the Lower Tsagaantsav Formation.   The well hit the top Lower Tsagaantsav reservoir at 2,803 m, only 5 m shallower than the pre-drill prognosis. Logs data indicated a 77 m gross interval of potential reservoir between 2,803 and 2,880 m, which was predominantly sandstone interbedded with shales and siltstones. Within this interval the logs data also define better porosity and permeability reservoir in three zones with a total gross thickness of 22 m (14 m net).   The well is currently in casing operation and prepared for a testing programme.   Petro Matad reported on 19 July 2019 that the company has spudded Heron-1 in the Tamsag Basin, Mongolia. The well is situated at the Heron prospect which lies near the boundary between Block XIX and XX within the Block XX. The well was planned to be drilled to a PTD of 3,050 m with the objective of exploring the hydrocarbon potential of the extension of proven oil in the Tolson Uul oil field (or 19-46 oil field) that spills updip into Block XX, and is targeting the Tsagaantsav Formation of the Upper Jurassic - Lower Cretaceous clastic play within the area.Â  DQE International 40105 rig is used for the drilling operation.   Heron prospect is one of the 5 lease line prospects in the 2018 Programme in Block XX of Petro Matad. The 5 prospects include Gazelle, Heron, Antelope, Wild Boar and Marmot, among the which, 3 high-graded prospects of Gazelle, Heron and Antelope were estimated with 50-75% chance of success. The prospects area is covered by 2D and 3D seismic and Heron prospect is estimated to contain 25 MMbo of Mean Prospective Recoverable Resource, and is the continuations of producing trends or structures on Block XIX. Adjacent infrastructure facilitates would help quick development in the event of success.  Background Information    Tolson Uul oil field (or 19-46 oil field) is immediately to the north of the Heron prospect in Block XIX. The field was discovered by SOCO (USA) in 1995, and brought onstream on 11 February 1998, with the first crude exported to the Aershan oil field pipeline in China by truck. Once in this pipeline, the crude is pumped to a railroad terminal on the Moscow-Beijing railroad. It is then loaded from the pipeline into tank cars and transported to the Hohhot refinery for processing. on 1 April 2005, the field was transferred to PetroChina.   Two fields Tolson Uul and Tolson Uul North in the Block XIX, as of August 2014, PetroChina-Daqing had produced crude of 500 thousand tons in Block XXI and XIX, exceeding the scheduled target, according to news report in August 2014.  Petro Matad was 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. All current conditions of the Production Sharing Contract remain valid during the period of the extension, which is renewable for further terms after 19 July 2013.  Petro Matad is the parent company of a group focused on oil exploration, as well as future development and production, in Mongolia. The Group holds sole operatorship of three Production Sharing Contracts with the Government of Mongolia. Block XX has an area of 10,340kmÂ² in the far eastern part of the country. Blocks IV and V are located in central Mongolia. Block IV covers approximately 29,000kmÂ² and Block V approximately 21,150kmÂ².  Petro Matad drilled two NFWs in 2018 with drilling objective in the Jurassic â Cretaceous Play, but the both 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.
Mongolia (Hailar B.) Tolson Uul