Petro Matad (MATD) shares soared on Monday after the AIM listed Mongolian oil explorer released results from its Heron-1 oil discovery.
The company reported that one of its two wells flowed oil at a peak rate of 821 barrels of oil per day in testing, and produced 46 degree API oil, without artificial lift or stimulation, which the company described as exceptional for the Tamsag Basin.
Mike Buck, the CEO of Petro Matad said: "The test results at Heron-1 are even better than we expected given that the well is deep in the basin centre.”
He said: “The data gathered will now be analysed and used to secure tenure of a development area in Block XX with a view to transitioning Petro Matad from explorer to producer with revenue generation.”
Shares in Petro Matad were trading 68% higher at 4.6p during Thursday morning trading
The company told investors that the second well did not flow naturally but proved at least a 70 metre oil column in the well.
The Heron-1 oil discovery is located in the north of Block XX, eastern Mongolia, adjacent to the producing Block XIX, operated by PetroChina.
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