Mongolian exploration company Petro Matad has secured extensions for two of its exploration blocks in the country as it aims to spud the first well in the third quarter of this year.
The extensions to its production sharing contracts have been secured for two years each, until 29 July 2019.
A further two-year extension has been provided for in the contracts, and the company will be eligible to apply for extensions in early 2019.
In a statement the company said it had matured a series of prospects for exploration drilling, having secured a drilling rig from Sinopec Mongolia LLC.
The company has committed to spend $7 million during the period of the initial extension.
The deal will allow the company to execute its planned work for the remainder of the year, which includes the drilling of two wells and the acquisition of 3D seismic.
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