Shares of Petro Matad Limited (LON: MATD) fell 11% after the company announced that it met with Mongolian government officials who reviewed its exploitation license application for the Heron oil discovery in Block XX, eastern Mongolia.
The meeting with the Mineral Resource Professional Council (MRPC) was held virtually due to the COVID-19 lockdown in Mongolia and resulted in the MRPC approving the company’s Reserves Report without alteration.
The company’s shares fell despite today’s approval as investors grow impatient
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Petro Matad then wrote to the Ministry of Mining and Heavy Industry requesting for the appointment of auditors to review the Plan of Development before the document is submitted to the Mineral Resources and Petroleum Authority of Mongolia (MRPAM) and the MRPC for review and final approval.
The company has finished preparing the development plan, which is now ready for the audit and review process.
Petro Matad has also prepared its formal application to MRPAM for the Exploitation Area. Under the law, the Exploitation Area is to be determined by mutual agreement between MRPAM and the Company.
Mike Buck, CEO of Petro Matad said: “We appreciate the commitment from the Ministry to facilitate the holding of the MRPC reserves review meeting virtually during the lockdown and the participation and engagement of all the members of MRPC. We are very pleased that the Council supported and approved our submission.”
Adding: “We now require the Plan of Development to be reviewed and approved and the Exploitation Area to be agreed to complete the documentation required for us to make the formal application to the Minister to grant the Exploitation Licence. Our preparations for both are complete and we are working to conclude the final stages of the approval process as soon as possible.”
Petro Matad share price
Petro Matad share crashed 11% to trade at 3.80p having dropped from Monday’s closing price of 4.27p.