London AIM-listed Petro Matad has moved from pure exploration into commercial oil sales in Mongolia, marking a major shift for the company and a small but meaningful addition to the country’s limited domestic production.

🤔 Company Operations in Mongolia

Petro Matad holds 100% working interest and operatorship of 2 Production Sharing Contracts. The core producing asset is Block XX in the Tamtsag Basin in eastern Mongolia. Production began at the Heron-1 well in October 2024, making Petro Matad only the third oil producer in the country. The Gazelle-1 well came online in late October/early November 2025 after a successful test that flowed over 400 barrels of oil per day.

• 💭 Crude is trucked to nearby PetroChina facilities for processing and export to China. In 2025, Block XX’s 2 wells averaged 168 barrels per day, generating about 61,000 barrels in sales at an average $61.8/barrel and roughly $2 million in net revenue. Cumulative production surpassed 100,000 barrels by April 2026.
• 🧐 In January 2025, Petro Matad signed a PSC for the 41,000+ km² Borzon Block VII in southern Mongolia, an early-stage exploration area near producing basins in China. The company also owns 50% of SunSteppe Renewable Energy, developing utility-scale solar, wind, battery and hybrid projects.

🔎 What Petro Matad Aims For?

The company aims to maximise shareholder value through a balanced portfolio of Mongolian energy projects. In oil, it plans to optimise production, add wells, acquire 3D seismic and farm out stakes in Block XX and potentially Block VII to accelerate development and reduce capital needs. In renewables, it is advancing large-scale projects toward construction, targeting Mongolia’s growing demand for energy independence and clean power exports.

Finally... Mongolia offers frontier oil potential, supportive energy policies, and easy export access to China. Petro Matad has built expertise there since the mid-2000s and secured the country’s third exploitation licence, enabling commercial production.

But regular oil sales now mark its shift to a cash-generating producer. The 2026 Oil Sales Agreement unlocks 48,000 barrels for export and payment, improving liquidity. Longer-term success depends on stable operations, better PetroChina contracts, higher oil prices, and progress on farm-outs or renewables.