Petro Matad, a Mongolia-based oil exploration company, has announced its schedule for the commencement of oil production at the Heron-1 well within the Block XX production sharing contract area in eastern Mongolia.

The company has completed site construction and equipment installation activities on the Heron-1 well pad, setting the stage for production to begin on or before 25 October 2024.

Petro Matad’s in-field operations team is currently at the site, finalising logistical preparations for the imminent start-up.

The necessary infrastructure, including a beam pump, generator and storage tanks, is undergoing commissioning in readiness for the operational launch.

The produced fluids will be transported to PetroChina's facilities approximately 20km to the north in Block XIX.

In celebration of this milestone, Petro Matad will host a start-up ceremony at the well site on 25 October, with a delegation led by the Ministry of Industry and Mineral Resources in attendance.

The event will also see the participation of senior representatives from the Ministry, the Mineral Resources and Petroleum Authority of Mongolia (MRPAM), provincial and district governors and officials, as well as representatives from PetroChina.

The collaboration between Petro Matad and the adjacent operator, PetroChina Daqing Tamsag, is solidifying, with a cooperation agreement close to finalisation.

This agreement will outline the terms for offloading, measurement, processing, export and sale of the oil produced from Block XX. While all fees have been agreed upon, the administrative fee payable to PetroChina remains the only unresolved matter.

Despite this, Petro Matad, PetroChina and MRPAM have reached a consensus to initiate production at Block XX ahead of the operational winter shutdown scheduled for late November.

Petro Matad CEO Mike Buck said: "We have waited a long time to get the Heron-1 well into production and we are pleased to have reached this important milestone. We very much appreciate the support of the Ministry and MRPAM and the cooperation that PetroChina is providing. We are also very grateful for the hard work and enthusiasm of our dedicated team and for the patience and continued support of our shareholders."

Last month, Petro Matad began drilling the Gobi Bear-1 exploration well in the Tamsag Basin of eastern Mongolia.