Petro Matad (AIM:MATD) said PetroChina has advised the 2026 Oil Sales Agreement will be approved imminently.
The AIM‑quoted Mongolian oil company reported production from Heron‑1 and Gazelle‑1 is in line with forecast and that c.35,000 barrels of 2026 output are currently held in Block XIX tanks, with total Block XX production since start‑up exceeding 110,000 barrels.
Heron‑1 averaged 126 barrels per day through the first quarter with a c.3% water cut, and Gazelle‑1 has averaged 123 barrels per day with the water cut stabilised at c.20%.
The company said PetroChina’s delay allowed it to seek higher prices and to approach Chinese traders as an independent route to market, though PetroChina remains the preferred partner.
Petro Matad is reviewing a technically and commercially attractive offer to acquire a high‑resolution 3D seismic programme over the Block XX exploitation area with a crew available to begin in late June or early July.
No workovers are planned for Heron‑1 or Gazelle‑1 at this time, while discussions continue on a Heron‑2 workover and a cost‑effective well test for Gobi Bear‑1.
SunSteppe Renewable Energy is advancing a 200MW hybrid project in Tuv Province and has been shortlisted or tendered for several additional utility‑scale solar, wind and battery schemes.
“The delay in approving the 2026 Oil Sales Agreement has been frustrating but the rising oil price has given us the chance to benefit significantly, so the news that the approval is coming soon is most welcome,” said Mike Buck, CEO.
The company said it is urgently evaluating the seismic proposal with the crew available to mobilise in late June or early July.
