Source: Petro Matad               Date: 01 July, 2010

Petro Matad Ltd. passed a key milestone last week when it spudded its long-awaited first well in Mongolia, after having been stopped on its tracks by unusually harsh winter weather conditions and then a regional shut down due to an outbreak of foot and mouth disease. The Davsan Tolgoi-1 wildcat in Block XX in the east of the country is being drilled vertically to a depth of 1,440 meters. It should take 30 days to complete and, as the first of three planned wells on the 14,250 sq km block, will be a key test of Petro Matad’s strategy. It has taken Petro Matad four years, and no inconsiderable expense, to get to the point of drilling its first well and the London Stock Exchange AIM company is obviously planning to make the most of every downhole data set. This is certainly going to be key test of Petro Matad’s ambitions in Mongolia.