Petro Matad, the Mongolian oil company, has experienced setbacks with its Heron 1 oil discovery in Mongolia, leading to a wider loss for the first half of 2023. The company’s shares in London dropped by 9.5% to 2.85 pence after the announcement.
The delay in the completion operations at Block XX, where the Heron discovery is located, is primarily due to a slow response from the provincial government. This delay puts the company’s plan to finish the well before winter at risk, as oilfield contractors typically shut down during this season.
Additionally, Petro Matad reported a loss of $1.9 million for the first six months of the year, compared to a loss of $1.6 million during the same period last year. However, the company did generate $141,000 in revenue from consulting services, interest income, and other sources, which is a significant increase from the previous year’s revenue of $20,000 solely from interest income.
Overall, Petro Matad is facing challenges with its Heron 1 oil discovery due to delays caused by the provincial government’s slow response. The company aims to overcome these obstacles and successfully complete the well before winter.