Petro Matad receives government's approval for farm-out in Mongolia

Petro Matad, a petroleum explorer based in Mongolia, has received government approval for the farm-out to BG Group for a 78% interest in its interests in blocks IV and V in central Mongolia.

The firm still requires with one further condition to be satisfied by BG Group, after which it will release an operational update on its preparations to start work.

The company said it currently has low cash reserves, but continues to be "highly confident" that the remaining condition of the farm-out will be completed before the reserves run out.

In case of a delay, the company is in talks with a potential provider of short-term funding.

Shares were up 1.96% to 6.5p on Thursday as of 13:38.