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ULAANBAATAR - Petro Matad Limited, an AIM-quoted Mongolian oil company, has commenced oil production from its Heron-1 discovery well in October 2024, marking a significant milestone for the company as it becomes only the third oil producer in Mongolia.
The well has produced over 45,000 barrels to date, initially on natural flow and now using artificial lift, according to the company’s final results statement for the year ended December 31, 2024. Petro Matad recently signed an oil sales agreement with neighboring operator PetroChina and received its first payment in June 2025, though 30% of revenue is being withheld pending resolution of concerns raised by PetroChina.
The company’s 2024 drilling campaign delivered mixed results. The Heron-2 well, spudded in September 2024, showed lower productive potential than Heron-1 and was suspended pending further analysis. The Gobi Bear-1 exploration well also yielded ambiguous results requiring additional study.
In January 2025, Petro Matad was awarded Block VII in Mongolia’s Exploration Licensing round, expanding its portfolio beyond its existing Block XX Production Sharing Contract.
Financially, the company reported a net loss after tax of $10.92 million for 2024, compared to a $5.9 million loss in 2023. Petro Matad raised $9.4 million through an oversubscribed equity offering to fund its 2024 work program and ended the year with a cash position of $3.65 million.
The company’s renewable energy joint venture, Sunsteppe Renewable Energy, has expanded its portfolio to include four projects ranging from 24MW to 1,500MW capacity.
"After many years, 2024 finally saw Petro Matad start oil production," said CEO Mike Buck in the press release statement.
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