Petro Matad, the AIM quoted Mongolian oil company, has announced its audited final results for the year ended 31 December 2025. All monetary values are expressed in United States dollars unless otherwise stated.
2025 Financial Highlights
- As of 31 December 2025, the Group's cash position was $3.67 million inclusive of Financial Assets (31 December 2024: $2.96 million, excluding receivables).
- The Group's net loss after tax for the twelve months ended 31 December 2025 was $4.23 million (31 December 2024: loss $10.92 million).
- An equity raise was completed in mid-July 2025 to fund activities directed at increasing production.
- Oil sales in 2025 generated revenue net to Petro Matad of c.$2 million selling at an average price for the year of $61.8 per barrel.
2025 Operational Highlights
- Heron-1 maintained production up-time of over 99% throughout 2025, delivering total oil sales of c.54,000 barrels to PetroChina's neighbouring TA-1 facility by year-end.
- A successful well test at Gazelle-1 in October delivered a maximum rate of over 400 barrels of oil per day ("bopd") on natural flow. The well was brought onstream by the end of October and oil sales totalling over 7,000 barrels from Gazelle-1 were achieved by year-end.
- Production from Block XX in 2025 averaged 168 bopd.
- An Oil Sales Agreement was signed with PetroChina in April 2025. A 30% revenue withholding by PetroChina related to Mongolian tax treatment was fully resolved by year-end with all 2025 payments made.
- Farm out discussions on the Company's Mongolian portfolio with potential farminees began in early 2025 and continued throughout the year.
- Sunsteppe Renewable Energy (SRE) was very active and identified several attractive projects. Good progress was made on its 200MW Hybrid project in Tuv Province.
Mid-2026 Update
- Production from Heron-1 has continued as forecast and production from Gazelle-1 has exceeded expectations post the period end. Average production year to date is 233 bopd. In April 2026 the Company reached the milestone of its first 100,000 barrels produced thanks to the diligent efforts of the Field Operations team.
- The increase in oil price in 2026 compared to 2025 benefits the Company in that Mongolian fiscal terms are favourable and the contractor's return increases in proportion to the increase in the oil price.
- Block XX farm-out discussions are continuing, and with the significant rise in the oil price, an uptick in interest has been shown by a number of potentially interested parties. The farmout initiative is a major focus during 2026 and further announcements regarding progress will be made in due course, as appropriate.
- As was the case in 2025, negotiations on the annual Oil Sales Agreement with PetroChina have been slow in 2026, but finally PetroChina has approved the revised wording and has also agreed to reduce the handling fee included in the contract. With the agreement now approved, the Company will submit its invoice for the Block XX 2026 production year to date which totals over 40,000 barrels. It is hoped that the lengthy discussions on the 2026 Oil Sales Agreement, including detailed analysis of the applicable tax treatment and appropriate optimisation will facilitate a smoother and much quicker approval of a similar contract for 2027.
- Discussions are continuing on the potential to acquire 3D seismic on Block XX during the summer of 2026.
- On renewable energy, SRE continues to focus on its 200MW Hybrid project, which is the most likely of its existing portfolio to achieve ready to build status in the near term. Meanwhile, the government is now actively pushing renewables projects forward. SRE did not to participate in recent competitive bidding on five government auctions of solar projects in the 20MW to 50MW range as the timeframe for delivery is extremely tight and penalties will be imposed if deadlines are missed. However, SRE is already very active in 2026. In addition to the 200MW Hybrid project, discussions to secure a 100MW solar/100MW battery fast track project are ongoing, an expression of interest has been submitted for a 100MW wind project the marketing of which is being managed by the International Finance Corporation and SRE is also part of a consortium chosen as the preferred bidder to negotiate terms on a 90MW solar/battery project with the Ulaanbaatar municipality.
Mike Buck, CEO of Petro Matad, said:
'2025 was a standout year for Petro Matad with continuing production from Heron-1 and the exciting addition of Gazelle-1 in the fourth quarter. The generation of a revenue stream for the Company is a major achievement and our focus in 2026 is on seeking a partner to join us to accelerate production and revenue. Whilst the Block XX farm-out negotiations in 2025 were frustratingly slow, the post-period increase in interest is encouraging.
We are pleased that PetroChina has finally approved the 2026 Oil Sales Agreement and the dedication of the team that made a huge effort to get this across the line is much appreciated.
SRE's progress through 2025 was mixed, with some counterparties moving slower than we had hoped but we are currently focused on some large projects which have aggressive but realistic timeframes and so have the potential for rapid value crystallisation".
About Petro Matad
Petro Matad is the parent company of a group focused on oil exploration, development and production in Mongolia. Currently, Petro Matad holds a 100% working interest and the operatorship of the Matad Block XX Production Sharing Contract with the government of Mongolia. Block XX has an area of 214 square kilometres in the far eastern part of the country. The Company also holds a 100% working interest and operatorship of the Borzon Block VII Production Sharing Contract with an area of 41,141 square kilometres in southern central Mongolia. The Company also has a 50% holding in the SunSteppe Renewable Energy joint venture pursuing utility scale renewable energy projects in Mongolia.
Source: Petro Matad
