Petro Matad Davasan Logs Confirm Earlier Results

30th Jul 2010 13:31

LONDON (Dow Jones)--Petro Matad Limited (MATD.LN) said Friday wireline logging, casing and cementing operations have been undertaken at its Davsan Tolgoi-1 exploration well and initial petrophysical analysis of the Weatherford wireline logs confirm earlier reported results from the drilling shows. MAIN FACTS: -Whilst further analysis is still to be undertaken, the wireline logs indicate good log porosities (25% average) and permeabilities concentrated in six sandstone zones, with a total net pay of 12 meters. -The reservoir quality at DT-1 is attributed to a lack of compaction combined with early and continuous entrapment of hydrocarbons along the crest of the Davsan Tolgoi anticline, which forms the highest structural closure within the Tamtsag Basin. -Currently sourcing and evaluating workover rigs for those tests and a decision on which well will be tested this year will be made on completion of the drilling element of the three well drill program. -The drill rig will shortly be moved to the site of the Company's second well, DT-2, and a further announcement will be made when drilling operations commence. -The first 2D seismic survey has commenced on the Company's Blocks IV and V in central Mongolia. -Mongolian geophysical contracting company Khet LLC is undertaking the 360 km survey, covering 7 seismic lines, under Petro Matad's management and supervision. -Shares at 1230 GMT up 14.5 pence, or 11.2%, at 144.0 pence. By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; [email protected] (END) Dow Jones Newswires July 30, 2010 08:31 ET (12:31 GMT)