Petro Matad Limited ("Petro Matad" or "the Company"), the AIM quoted Mongolian oil company, announces its audited final results for the year ended 31 December 2024. All monetary values are expressed in United States dollars unless otherwise stated.
2024 Operational Highlights
· The Company successfully began oil production from its Heron-1 discovery well in October 2024, which was a significant milestone after continued negotiations with Ministry of Industry and Mineral Resources (MIMR) and Mineral Resources and Petroleum Authority of Mongolia (MRPAM)
· The Heron-2 well spudded on 8 September 2024 and although drilling results were encouraging, on test the productive potential was significantly lower than rates observed at Heron-1. The well was suspended pending further analysis. The Gobi Bear-1 exploration well was also drilled with ambiguous results and a zone of interest is the subject of further study.
· In 2024, Sunsteppe Renewable Energy (SRE) increased its portfolio with the addition of two new high-graded projects. The portfolio now includes the 24MW Oyu Tolgoi (OT) mine Green Hydrogen demonstration project; the Choir 50MW Battery Energy Storage System; a 1,500MW export to China project and a 200MW Hybrid project associated with an operating power plant, all of which offer double digit rates of return.
· The Company participated in Mongolia's Exploration Licensing round and awards were still pending at year-end. Block VII, the Company's top-ranked block, was awarded to Petro Matad on 16 January 2025.
Mid-2025 operational update
· Heron-1 has continued to produce through 2025 initially on natural flow and now using artificial lift and to date the well has produced over 45,000 barrels.
· An oil sales agreement was signed with neighbouring operator PetroChina and Petro Matad received the first payment for production in June 2025. A 30% revenue withholding pending confirmation on certain potential concerns raised by PetroChina is being addressed as a priority.
· Work on Block VII is underway with encouraging results so far. Data on the seismic and drilling operations by the previous operator are being incorporated into the Company's first phase evaluation.
· The Company's renewable energy joint venture, Sunsteppe, continues to work on its four high-graded projects and is in discussion with debt providers and potential equity partners.
· Recognising an improvement in the business environment in Mongolia, Petro Matad has stepped up efforts to find farm-in partners for its upstream oil projects in order to accelerate development and production with the goal of increasing shareholder value.
2024 Financial Highlights
· During 2024 the Company executed an oversubscribed equity raise for gross proceeds of $9.4 million to fund its 2024 work programme.
· As of 31 December 2024, the Group's cash position was $3.65 million (inclusive of Financial Assets) (31 December 2023: $4.5 million).
· The Group's net loss after tax for the twelve months ended 31 December 2024 was $10.92 million (31 December 2023: loss $5.9 million).
Mike Buck, CEO of Petro Matad, said:
"After many years, 2024 finally saw Petro Matad start oil production from the Heron-1 well so becoming only the third producer in the country. While the Heron-2 well did not meet our expectations, we are working on a programme to determine the potential of the well as an oil producer or alternatively as a water injector.
Our renewables joint venture, Sunsteppe, made good progress in 2024 and the portfolio includes projects ranging from 24MW to 1,500MW. The Mongolian government has prioritised energy independence and is focused on progressing renewable energy export to China. Sunsteppe is well placed to be a serious player in this sector.
We are aware and appreciative of our shareholders' patience through the delays our projects have suffered and of their continuing support."