Davsan Tolgoi drilling to revive in Mongolia following winter shutdown

Source: Petro Matad

The 2009/2010 three-hole drilling program on the Davsan Tolgoi prospect on the Petro Matad's Block XX in the east of Mongolia, is due to recommence shortly, following the winter shutdown.

Petro Matad's advance team and contractors have been at Davsan Tolgoi since April 27, 2010 carrying out preparatory site-works and maintenance on the camp and the three well sites. Following an unusually cold and long winter in Mongolia, maintenance items are more numerous than anticipated; however work, is proceeding on these matters and the Company expects this maintenance to be completed without any undue delays or longer term problems.

Petro Matad's drilling contractor, Ansai Yuehua Oil Tech Company Ltd, is currently finalising visa and work permit procedures for its Chinese drilling personnel, who are expected to arrive on site this week. On their arrival they will commence a period of rig repairs and maintenance in preparation for spudding later in the month.

The Company has hired an experienced drilling supervisory team, led by Drilling Superintendent Richard Cole, and supplemented by international and Mongolian drilling professionals. The international members of the drilling team, namely the Drilling Supervisor, Wellsite Geologist/Petrophysicist and Field Services Manager, have previously worked on similar programmes in Mongolia, and possess extensive international experience.

This post-winter start-up procedure is on a similar timetable to the Petro China (Daqing) drilling operations on Block XIX, immediately to the north of the Company's Block XX.

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