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Petro Matad posts first-half
loss, eyes first oil next year
PERFORMANCE MONGOLIA-FOCUSED junior Petro Matad
has posted a first-half pre-tax loss of $1.02mn,
which is a slight improvement from the $2.35mn
loss the company recorded in the same period
of last year.
The UK-listed developer in July raised about
$10mn to fund a development work programme
that aims to bring oil production on stream dur-
ing the second half of next year.
“Petro Matad plans to generate revenue
from early production as soon as possible and
is working to secure the necessary contracts that
will allow this production to get to market,” the
company said in a statement.
It added: “The company continues to manage
its costs closely and will maintain a small, focused The PoD will concentrate initially on the area
workforce retaining all of the operational capa- of the proven reserve around Heron 1, expand-
bilities and experience gained from many years ing in phases to target the estimated 194mn bar-
of successful operations in Mongolia.” rels of total in place resource potential.
The Mongolian government awarded Petro After the approval, Petro Matad said it would
Matad in July with a 25-year licence for the Block resume discussions with potential farm-in part-
XX block following its approval of the company’s ners and review funding options to complete the
plan of development (PoD). next stage of activity.
China seeks more “dynamic”
mineral reserve updates
POLICY THE Chinese central government called on local The National Food and Strategic Reserves Admin-
governments as well as the country’s two largest istration said on September 9 that it had released the
oil majors this week to provide more “dynamic” oil “to ease the pressure of rising raw material prices.”
mineral reserve updates. The agency highlighted the importance of
The Ministry of Natural Resources published a “normalised” crude rotation in the SPR as a
a notice on September 15 that called on China means of helping to balance the market. The
National Petroleum Corp. (CNPC) and Sinopec, administration said that holding open auctions
alongside a range of local authorities, to provide not of SPR barrels would “better stabilise domestic
just a comprehensive survey of existing reserves but market supply and demand”.
also an evaluation of the country’s resource poten- “On its face, it’s a pretty clear statement of an
tial. The notice said: “Knowing the quantity, quality, intent to use the SPR to dampen oil prices for
structure and distribution of our mineral resources domestic refiners,” the head of US consulting firm
is an important precondition for ensuring resource Rapidan Energy, Bob McNally, told the newswire
security and economic security.” on. China embarked on a spending spree last year,
The government’s push for greater insights buying up large quantities of oil when prices col-
into its mineral resources comes after Beijing lapse in the wake of a price war between Russia and
called for strategic commodities stockpiled in Saudi Arabia that was compounded by the demand
tanks and warehouses to be better managed. destruction wrought by the pandemic.
The central government took the unprec- Now, however, international prices have
edented move last week of publicly releasing rebounded and Moscow and Riyadh appear to be
crude from its strategic petroleum reserve (SPR) largely working from the same play book when it
in a bid to remove some of the upward pressure comes to production levels. The Brent benchmark, for
on international prices. example, is trading around the $70 per barrel mark.
P10 www. NEWSBASE .com Week 37 16•September•2021
