Petro Matad losses widen as it cashes up for planned operations

Mongolian oil explorer Petro Matad released its unaudited interim results for the six months ended 30 June on Friday, reporting a loss of $6.65m, widening from $2.52m for the comparable period last year.

The AIM-traded company's cash balance at period-end was $12.54m, up from $10.92m, with the board saying its cash position as at 30 June was “substantially increased” by the net fundraise of $15.98m announced on 19 January.

It said its cash position was further enhanced by the net $17.12m fund raise announced on 13 June.

Following approval at the extraordinary general meeting on 3 July, that cash was received on 6 July.

As of Friday, Petro Matad’s cash balance plus term deposits stood at $29.73m, which fully funded planned activities including the drilling of six wells through to the end of 2019.

“Operations at Snow Leopard 1 in Block V are progressing and we look forward to updating the market once the drilling has been completed,” said chief executive Mike Buck.

“Similarly, preparations at Block IV are on track for the Wild Horse 1 well.”

Buck said the delay to Block XX 2018 drilling was “disappointing” after the extensive efforts the company has put in to be able to resume operations in the area.

“However, the delay does offer the chance to exploit logistical, operational and financial synergies to drill the three planned Block XX wells back to back during the 2019 drilling season.”