Interim results meanwhile confirm it has cash to remain in “operationally ready” until mid-2021.
() shares fell around 10% in Monday’s early deals as its interim results statement included updates on the permitting process in Mongolia.
The company noted that its exploitation licence (EL) application for Block XX continues to progress.
A reserves report for the Heron-1 oil discovery has been reviewed by government appointed auditors and has been forwarded for final review by the authorities – Mongolia’s Mineral Resource Professional Council.
It added that it is pushing for the council to meet, and, is hopeful such a meeting could take place before the end of the third quarter.
Progress in permitting is delayed amidst the coronavirus (COVID-19) pandemic and also due to the country’s parliamentary election which was held in June. Petro Matad noted, however, its position in Mongolia remains in good standing as the licence award process progresses.
The company is also working on certain land access issues which delayed previous field operations in 2019. These issues were related to new legislation.
In terms of financial results, Petro Matad reported a US$2.35mln loss for the six months ended June 30 and it ended the half with US$2.08mln of cash.
“The company has strategically put in place cost saving measures without sacrificing its operational capability, which in the absence of new sources of financing, will enable it to remain in an operationally ready state until mid-2021,” it said.