Petro Matad Provides Updates on Gazelle and Heron Wells in Mongolia

Gazelle-1 Production Start: Petro Matad has commenced production from the Gazelle-1 well in Mongolia at an initial rate of 200 barrels of oil per day, following testing and installation of surface facilities. The company will monitor performance to potentially increase production rates.

Heron-2 Well Challenges: The Heron-2 well is undergoing retesting, with temporary pumping facilities recovering about one-third of the remaining injected fluid. However, a decline in flow may indicate downhole issues, leading to the well being shut in for realignment.

Heron-1 Performance: Since starting production in October last year, the Heron-1 well has produced a total of 59,920 barrels of crude oil, with a current daily average of around 145 barrels and a consistent water cut of about 3%.

Negotiations with PetroChina: Petro Matad is negotiating with PetroChina to finalize a revised oil sales agreement and confirm a payment schedule for previously withheld amounts, while also preparing infrastructure to connect Heron-1 to the national electricity grid.