Petro Matad to begin Mongolian seismic survey by end of month

Oil explorer Petro Matad announced on Wednesday that it had signed up a contractor to begin a large-scale 3D and 2D seismic survey of Mogolia's Tugrug Basin before the end of October.

The AIM-listed company signed a letter of intent with a division of China National Petroleum company, which is expected to begin work on two blocks in the basin "in late October".

The 218 sq km 3D seismic survey aims to define and de-risk near term drilling targets within the basin which Petro has estimated in-house could contain over 3bn barrels of oil in place, plus additional potential.

Based on previous 2D surveys, the 3D update is expected to give detail on a "major stratigraphic play fairway", which management felt could be similar to prolific petroleum producing plays in Africa, India and the Falkland Islands.

A 204 sq km 2D seismic survey will be focused on adjacent leads in Block V of the basin and a new basin in Block IV, with expectation of adding more "drillable" prospects to the company's exploration portfolio.