Source: Petro Matad Limited

In light of complications to tests of the Davsan Tolgoi 8 well (DT-8), Petro Matad may pursue a stimulation program to enable further assessment of the well and local reservoir. The DT-8 well did not flow under natural pressure.

Testing of DT-8 continued from 15 to 28 September. Petro Matad tested two zones at the Tsagaantsav formation. A small amount of oil and water was recovered. Pressure build up data indicates low permeability for the zone with some permeability impairment from exposure to drilling fluids. The firm will compare its results to initial flow results from the region.

“The DT-8 test is a continuation of Petro Matad's initial assessment of the flow characteristics of Tsagaantsav reservoirs, said Chief Executive Officer Doug McGay. “We are finding that the completion characteristics of both the uppermost and lower Tsagaantsav reservoirs are similar to neighboring producing areas where fracture stimulation is needed to overcome the permeability challenges associated with fluid sensitive clay and volcanic-derived cements in these complex reservoirs.”

Petro Matad is the parent company of a group focused on oil exploration, as well as future development and production in Mongolia.