BT
By Elena Vardon
Petro Matad shares fell on Thursday after the group posted a wider loss for the first half of 2023, and flagged delays in starting completion operations at its Heron 1 oil discovery in Mongolia.
At 0836 GMT, shares in London were down 0.3 pence, or 9.5%, at 2.85 pence, having fallen as low as 2.62 pence earlier in the session.
The Mongolian oil company said the first phase of development at Block XX–where the Heron discovery is–is being delayed due to a slow response from the provincial government. This is putting the plan to complete the well before winter–when oilfield contractors shut down–at risk, it said.
In July, Petro Matad said the Mongolian government approved the certification of the exploration area as a special purpose land, and said the company would with work with the central land agency and local authorities to complete the registration of the area and sign the necessary contracts required by regulations on its management.
The AIM-listed group also posted a loss of $1.9 million for the six months ended June 30, compared with a loss of $1.6 million in the same period the previous year.
The company made $141,000 in revenue from consulting services, interest income and other income, compared with revenue of $20,000 entirely from interest income a year before.
Write to Elena Vardon at [email protected]
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