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Petro Matad Ltd on Wednesday said it has brought its Gazelle-1 well into production in Mongolia, while marking the first anniversary of output from its Heron-1 well, which has produced around 60,000 barrels of oil to date. Shares in Petro Matad were down 16% at 1.32 pence in London on Wednesday afternoon. The petroleum exploration, development and production in Mongolia said Gazelle-1 was tested successfully in October and has now been brought onstream at an initial rate of 200 barrels of oil per day. The crude is being processed and exported under the existing oil sales agreement with PetroChina, and early shipments have been delivered to the Block XIX TA-1 facility. Petro Matad said the initial rate was set conservatively to prevent early water breakthrough, given uncertainty about the well’s distance from the oil-water contact. The company added that production from Heron-1, which began a year ago, has remained stable. Over its first 12 months of operations, the well produced 59,920 barrels of oil across 298 deliveries, equivalent to an average of 164 barrels per day, with a water cut of around 3%. Current daily output from Heron-1 is about 145 barrels, which Petro Matad said is ‘comparable with some of the better producers in the basin.’ Meanwhile, the Heron-2 re-test remains underway. The company reported that while pumping operations initially recovered about one-third of the injected fluids, flow later declined due to a potential mechanical issue or obstruction. Petro Matad said the Heron-1 grid connection is ready to be energised, pending final certification from the provincial governor. On payments, Petro Matad said invoices under its oil sales agreement with PetroChina have been paid up to August, with September’s payment being processed and October’s invoice recently submitted. Chief Executive Officer Mike Buck said: ‘Our operations team has worked hard to get the Gazelle-1 well ready for production in short order. We will closely monitor well performance to maximise production balanced with prudent reservoir management.’ Copyright 2025 Alliance News Ltd. All Rights Reserved.
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