Petro Matad Announces Block XX Exploitation License Application

Petro Matad Limited, the AIM quoted Mongolian oil company, provides the following update on its application to secure an Exploitation Licence for the Heron oil discovery in Block XX, eastern Mongolia.

The Block XX Exploitation Licence application has progressed with the meeting of the Mineral Resource Professional Council (MRPC) taking place. The meeting was held virtually due to a Covid-19 lockdown currently in place in Mongolia. MRPC reviewed Petro Matad's Heron Reserves Report and approved the submission without alteration.

Following the MRPC meeting, Petro Matad immediately wrote to the Ministry of Mining and Heavy Industry requesting the appointment of auditors who must now review the Plan of Development before this document is submitted to the Mineral Resources and Petroleum Authority of Mongolia (MRPAM) and to MRPC for review and final approval. Preparation of the Plan of Development has already been completed by the Company and the documentation is ready for the audit and review process.

Petro Matad has also prepared its formal application to MRPAM for the Exploitation Area. Under the law, the Exploitation Area is to be determined by mutual agreement between MRPAM and the Company.

Further updates will be provided in due course.

Mike Buck, CEO of Petro Matad said:

"We appreciate the commitment from the Ministry to facilitate the holding of the MRPC reserves review meeting virtually during the lockdown and the participation and engagement of all the members of MRPC. We are very pleased that the Council supported and approved our submission.

We now require the Plan of Development to be reviewed and approved and the Exploitation Area to be agreed to complete the documentation required for us to make the formal application to the Minister to grant the Exploitation Licence.

Our preparations for both are complete and we are working to conclude the final stages of the approval process as soon as possible."