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Petro Matad Shares Plummet as Oil Payments Remain Outstanding
ByAinvest
Friday, May 30, 2025 5:53 am ET1min read
Petro Matad Limited's shares fell 30% on Friday after the company updated on outstanding oil payments from Block XX's Heron-1 well production. PetroChina has requested confirmation that there will be no customs, VAT, or tax charges, and Petro Matad is discussing payment of the majority of the amount due. The company highlighted progress in the field and plans for well tests at Gazelle 1 and Gobi Bear 1. Talks are ongoing with potential partners on Block XX.
Petro Matad Limited, an AIM-quoted Mongolian oil company, provided an operational update on May 30, 2025, which led to a 30% drop in its shares. The update highlighted the company's progress and ongoing challenges, particularly in relation to outstanding oil payments from Block XX's Heron-1 well production [1].The company reported that invoices for Heron-1 production from October 2024 to April 2025 have been processed by PetroChina but are pending payment. PetroChina has requested confirmation from the authorities that there will be no customs, VAT, or tax charges, leading to a discussion on partial payment of the amount due pending confirmation [1].
Petro Matad also noted progress in the field, with Heron-1 well delivering approximately 160 barrels of oil per day (bopd) with a low water cut below 6%. The company is evaluating the merits of converting Heron-2 into an injection well to support reservoir pressure and enhance productivity [1].
The company is planning well tests at Gazelle-1 and Gobi Bear-1, with the potential to add significant reserves if successful. Additionally, talks with potential partners on Block XX are ongoing [1].
The company's shares fell 30% following the update, reflecting investor concerns over the payment delay and the potential impact on cash flow. However, the company remains optimistic about its prospects, with CEO Mike Buck stating that preparations for low-cost well work in 2025 are underway to support and potentially enhance production [1].
References:
[1] https://www.investegate.co.uk/announcement/rns/petro-matad-ltd---matd/operational-update/8903865
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