Petro Matad Limited Cost Optimisation and Exploitation License Update (3637M)
11 Mayo 2020 - 1:00AM
UK Regulatory
TIDMMATD
RNS Number : 3637M
Petro Matad Limited
11 May 2020
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY
PETRO MATAD LIMITED TO CONSTITUTE INSIDE INFORMATION AS STIPULATED
UNDER THE MARKET ABUSE REGULATION (EU) NO. 596/2014 ("MAR"). ON THE
PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION
SERVICE ("RIS"), THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN
THE PUBLIC DOMAIN.
11 May 2020
Petro Matad Limited
('Petro Matad' or the 'Company')
Cost Optimisation and Exploitation License Application
Update
Petro Matad Limited, the AIM quoted Mongolian oil explorer,
provides an update on cost saving measures and its application for
an Exploitation Licence covering the Heron 1 oil discovery.
In order to ensure that the Company's current financial
resources can sustain the organisation through the processing of
its Block XX Exploitation Licence application and, at the same
time, recognising the impact that the ongoing COVID-19 pandemic has
had on global financial markets, Petro Matad's Board of Directors
has implemented certain cost saving measures.
-- All Executive Directors, Non-Executive Directors and other
senior managers have agreed to take salary cuts averaging 50%,
backdated to the start of Q2 2020.
-- The Company's professional advisers have also agreed to
reduce fees by up to 45%.
-- With these measures implemented, the overhead costs of the
Company have been halved whilst crucially maintaining our operating
capability. Further cost cutting measures have been identified and
can be executed if market conditions make this necessary.
-- The measures already undertaken will enable Petro Matad to
continue to operate with the cash resources it currently has on
hand up to the end of Q1 2021, and if the identified further cost
cutting measures are implemented, up to the end of H1 2021.
During this period the Company will focus on: securing its Block
XX Exploitation Licence for the development of the 2019 Heron 1 oil
discovery; retaining and prolonging its Block V Exploration
Licence; seeking partners to join it in existing and new ventures
in Mongolia as well as securing additional funding as necessary to
take the Company through to the next phase of its development as a
leading Mongolian focused explorer and producer.
Exploitation licence update
As outlined in our last update issued on 23 March, the proactive
approach taken by the Mongolian Government has been successful in
containing the spread of COVID-19 in the country. Apart from the
cessation of international travel, there remains no significant
impact on Petro Matad's operations in country and the Government
ministries are open and functioning as normal.
The Block XX Exploitation Licence application is progressing
with the Mongolian authorities with meetings already held with
industry regulator MRPAM and their audit of the Heron Reserves
Report now successfully completed. The next step in the process
involves the Reserves Report being reviewed by technical
departments in the Ministry of Mining and Heavy Industry after
which the Plan of Development will be required to be submitted.
Work is already well advanced on the Plan of Development
documentation and we continue to look for ways to expedite the
approvals process in cooperation with the relevant authorities.
Mike Buck, the CEO of Petro Matad said :
"The combination of the global pandemic, its impact upon
financial markets and the significant reduction in the oil price
make these testing times for all those that operate in our
industry. However, Petro Matad is determined to weather the storm,
pursue the permits we need and prepare for the next phase of our
activities.
The changes we have made to our cost base are prudent steps to
take at this time and the Company is highly appreciative of the
flexibility and commitment demonstrated by staff, contractors and
advisers. We are heartened that, despite the disruptions evident
around the world, we are still able to progress the Block XX
Exploitation Licence application with the Mongolian
authorities."
Further updates will be provided in due course.
-Ends -
For further information please contact:
Petro Matad Limited
Mike Buck, CEO +976 7014 1099 / +976 7575 1099
Shore Capital (Nominated Adviser and Broker)
Toby Gibbs
Jerry Keen +44 (0) 20 7408 4090
FTI Consulting (Communications Advisory Firm)
Sara Powell
Ben Brewerton +44 (0) 20 3727 1000
About Petro Matad
Petro Matad is the parent company of a group focussed on oil
exploration, as well as future development and production in
Mongolia. At the current time, Petro Matad holds 100% working
interest and the operatorship of three Production Sharing Contracts
with the Government of Mongolia. Block XX has an area of 10,367
square kilometres in the far eastern part of the country, and
Blocks IV and V have an area of 29,062 square kilometres and 21,143
square kilometres, respectively, in the central western part of the
country.
Petro Matad Limited is incorporated in the Isle of Man under
company number 1483V. Its registered office is at Victory House,
Prospect Hill, Douglas, Isle of Man, IM1 1EQ.
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END
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