Petro Matad (AIM:MATD), the AIM-quoted Mongolian oil company, reported an unaudited loss of $0.59 million for the six months to 30 June, down from $1.7 million a year earlier.
The narrower loss came despite the company receiving no 2026 oil sales revenue during the half, after PetroChina Daqing Tamsag delayed implementation of the 2026 Oil Sales Agreement even though terms were agreed with PetroChina Mongolia in April.
The Heron-1 and Gazelle-1 wells in Block XX kept producing throughout the period, delivering 41,941 barrels of sales crude to the Block XIX processing facility at a combined average of 241 barrels a day, with Gazelle-1 performance exceeding expectations by around 46%.
Cash stood at $2.76 million at the period end, up from $2.37 million a year earlier, while the company was owed a net receivable of $2.16 million for oil delivered to Block XIX; the balance also includes $0.9 million payable to the Mineral Resources and Petroleum Authority of Mongolia, withheld pending resolution of the sales agreement.
"It is beyond frustrating that the delay on oil sales continues and we are working on resolving this as our top priority," said chief executive Mike Buck.
Petro Matad has already disclosed that PetroChina instructed it to stop delivering Block XX production in September, shutting in Heron-1 and Gazelle-1, after storage tanks at Block XIX neared capacity; the company has said it holds sufficient cash to operate into 2027 pending receipt of 2026 oil sales revenue.