Petro Matad spuds Davsan Tolgoi-1 exploration well in Mongolia

Petro Matad says that the Davsan Tolgoi-1 (DT-1) exploration well was spudded at 2 a.m. Mongolian time on 23rd June (1900 hours on 22nd June 2010, BST).

The DT-1 well is being drilled vertically to an estimated target depth of approximately 1440 metres.The well is being drilled in accordance with the Company's drilling contract with Chinese operator Ansai Yuehua Oil Tech Company Ltd ("Ansai Yuehua"). Drilling operations are expected to take approximately 30 days and a further announcement will be made once drilling is completed.

DT-1 is the first exploration well to be spudded as part of Petro Matad's2010 drilling programme on itsProduction Sharing Contract on Block XX in Eastern Mongolia, one of three exploration blocks owned and operated by the Company in Mongolia

Additions to the Petro Matad team Petro Matad has secured the services of Mr Frank Witteman as Wellsite Geologist and Petrophysicist for the plannedthree-well programme. Mr. Witteman was Lead Wellsite Geologist and Petrophysicist on three of the initial SOCO plc discovery wells in the Tamsag Basin.

The Company is contracting global oilfield services group,Weatherford,to undertake certain functions within the drilling programme. Weatherford Chinawill be engaged to acquire an advanced wireline log suiteand Weatherford Laboratories, based inHouston, Texas will be used for petrologic and geochemical analysis. Waanders Palynology Consulting, based in California, will be engaged to undertake biostratigraphic analysis of well samples.


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