Petro Matad reaches drilling rig agreement with Sinopec

Mongolia-focussed oil explorer Petro Matad has successfully concluded negotiations with Sinopec on a contract amendment for use of its drilling rig in the 2018 drilling campaign, it announced on Tuesday.

The AIM-traded company said “substantial” commercial concessions were received as a result of the negotiations.

“This is an excellent outcome for the company, as the Sinopec rig has now achieved full certification to international standards,” the board said in its statement.

“As the rig is already in Mongolia - at zero rate to the company - it will very quickly be able to mobilise to the drilling location in the spring.”

The company currently has a number of drill-ready targets and will high-grade the candidates for the planned drilling campaign in Block IV and V following completion of the ongoing seismic campaign, which it expected to finish in late January.