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(Sharecast News) - Mongolian oil company Petro Matad announced on Tuesday that production at its Heron-1 well in Block XX was set to start by 25 October.
The AIM-traded firm said the construction and equipment installation at the Heron-1 well pad was complete, with site commissioning currently underway.
It said its in-field operations team was making logistical preparations to begin transporting produced fluids to PetroChina's facilities at the nearby Block XIX.
A production startup ceremony would be held at the site on 25 October, attended by a delegation led by the Ministry of Industry and Mineral Resources.
The company said the event would also include representatives from the Mineral Resources and Petroleum Authority of Mongolia (MRPAM), local government officials, and senior representatives from PetroChina.
Petro Matad added that it had also nearly finalised a cooperation agreement with PetroChina Daqing Tamsag for the use of Block XIX's production facilities, export infrastructure, and the processing and sale of oil from Block XX.
While the agreement was pending final approval from PetroChina's headquarters, all parties, including MRPAM, had agreed to initiate production before the operational winter shutdown in late November to ensure operations continued through the winter months.
"We have waited a long time to get the Heron-1 well into production and we are pleased to have reached this important milestone," said chief executive officer Mike Buck.
"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."
At 1352 BST, shares in Petro Matad were up 2.25% at 2.43p.
Reporting by Josh White for Sharecast.com.
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