Petro Matad spuds Heron-1 exploration well in Mongolia

Mongolian oil explorer Petro Matad said it had spudded its Heron-1 exploration well in the Tamsag Basin.

Petro Matad's newest well, aimed at appraising the T19-46 oil field immediately to the north in Block XIX, will target a prospect with 25m barrels of oil at a total depth of 3,050 metres.

The AIM-listed group expects drilling to take 40 days to complete - at which time the drill rig will move five kilometres to its Gazelle-1 location.

In the event of a discovery, Petro Matad will bring in a separate rig for testing.

Chief executive Mike Buck said: "We are delighted to announce the spudding of the Heron-1 exploration well in block XX to commence our fully-funded 2019 drilling programme.

"The second half of the year has the potential to be a transformational period for Petro Matad."

As of 0900 BST, Petro Matad shares had slipped 1.13% to 8.50p.