Petro Matad Operations At Davsan Tolgoi-1 Well Progressing Well

13th Jul 2010 11:20

LONDON (Dow Jones)--Petro Matad Limited (MATD.LN), an oil exploration company with operations in Mongolia, announced Tuesday for the Davsan Tolgoi-1 or DT-1 exploration well that drilling is progressing well. MAIN FACTS: -DT-1 is currently drilling with oil shows in what is interpreted to be the Lower Zuunbayan Formation. -The good to fair hydrocarbon shows were encountered on July 12 at 1,075 meters measured depth, in an 8 meter-thick sandstone zone near the top of the Lower Zuunbayan Formation. -Drilling has temporarily paused at 1,093 meters for a bit change. -DT-1 is the first exploration well to be spudded as part of Petro Matad's 2010 drilling program on its Production Sharing Contract on Block XX in Eastern Mongolia, one of three PSCs owned and operated by the company in Mongolia. -The well was spudded on Jun. 23, as the initial test of the Davsan Tolgoi prospect on Block XX. -The planned total depth is 1,440 meters. -No testing is currently scheduled to be undertaken in this horizon and drilling operations are continuing with the company anticipating to reach total depth within the next week to ten days. -Shares at 1018 GMT up 1.50 pence, or 2.59 %, at 59.50 pence. -By Zechariah Hemans, Dow Jones Newswires; 44-20-7842-9411; [email protected] (END) Dow Jones Newswires July 13, 2010 06:20 ET (10:20 GMT)