Source - Alliance News

Petro Matad Ltd - Douglas, Isle of Man-based petroleum exploration company focused on Mongolia - Narrows pretax loss in 2021. Pretax loss shrinks to $2.1 million from $3.2 million in 2020. Exploration and evaluation expenditure narrows to $114,000 in 2021 from $433,000.

‘2021 was a pivotal year for Petro Matad as we obtained the exploitation licence for Block XX, which will see the company transition from explorer to active producer,’ comments Chief Executive Officer Mike Buck.

‘With the exploitation licence secured, a successful equity fundraise totalling $10.4 million was completed by early August which allowed the company to commence contract negotiations with infrastructure service providers and procurement of equipment for the Heron development that targets first oil from the completion of the Heron 1 well in 2022,’ the company explains.

Says Covid-19 control restrictions imposed by China regarding the land border between Mongolia and China are starting to ease, after exports to China and drilling in Mongolia were suspended on May 5. ‘On June 20, the northerly of the two oil export border crossings at Bayankhoshuu was opened and oil export from the PetroChina operated fields has resumed,’ it adds.

Firm proposes no dividend, unchanged from a year ago.

Current stock price: 2.58 pence, down 9.5% on Monday

12-month change: down 61%

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