AKIPRESS.COM - Mongolian authorities have formally approved the proposed extension of the company’s exploration projects, Petro Matad said in a statement on June 15.

Petro Matad is the parent company of a group focused on oil exploration, as well as future development and production in Mongolia. At the current time, Petro Matad holds the sole operatorship of three Production Sharing Contracts with the Government of Mongolia. Block XX has an area of 10,340 km² in the far eastern part of the country, and Blocks IV and V have an area of 28,900 km2 and 21,100 km2, respectively, in the southwest part of the country.

In a stock market statement, it told investors that the exploration period for blocks IV and V production sharing contracts have been extended for two years until July 2019.

It means the company has more time to meet its work obligations and retain its interests in the assets.

Specifically, Petro Matad said the extensions allow it to execute its planned work program for 2017 which includes drilling two wells and conducting a 3D seismic exploration work. The company noted that it expected its financial commitments for the extended period will amount to US$7mln.

The explorer added that further details of its work plans will be disclosed in future announcements.