Petro Matad, the AIM quoted Mongolian oil company, has announced that the Cabinet of the Mongolian Government has approved the certification of the Block XX Exploitation Area, including the Heron oil discovery, as special purpose land.
Having received feedback from all other ministries, the Ministry of Construction and Urban Development, which is responsible for land issues, submitted the documentation to Cabinet and the proposed certification was discussed at the Cabinet's meeting on 5 July 2023. The Cabinet approved the certification and also instructed officials to conclude the follow up formalities required under the Land Law. The Company will now work with the central Land Agency and local authorities to complete the registration of the area and to sign the necessary contracts required by the regulations on the management of special purpose land. In parallel, we are already in discussion with service providers to determine a timeframe in which crews and equipment can be available for the completion for production of the Heron 1 well.
The certification of Block XX as special purpose land gives the Company the legal right of access to the entire area for the purpose of hydrocarbon exploration and exploitation.
Mike Buck, CEO of Petro Matad, said:
'We are very pleased that the Cabinet has approved the certification of Block XX as special purpose land. This important step has been a very long time coming but now provides a firm legal standing to the Company to execute the approved plan of development for Heron and to explore the exciting potential around it. I would like to thank all our shareholders and in particular those that have been with Petro Matad for some years now, for their patience during this protracted certification process and I look forward to sharing further updates as we move into the next phase.'
Further operational updates will be provided in due course.
Source: Petro Matad
