Source: Reuters                       Date: 18 May, 2011

Oil explorer Petro Matad has found hydrocarbons at one of its wells in Eastern Mongolia, almost a year after it discovered oil at the first well it drilled in the region. Initial analysis at its Davsan-Tolgoi-4 (DT-4) well pointed to an oil interval containing a minimum of 6 meters of net pay -- the zone of a reservoir that contains economically producible oil.

Petro Matad said the deeper regions of the reservoir also exhibited the presence of hydrocarbons and further analysis was being carried out at the site. Last month, the company restarted drilling at the DT-4 well, after it had been shut down due to harsh winter conditions. This is the fourth well of its drilling campaign. The rig will now be moved to drill its fifth well, Petro Matad said.