Petro Matad Limited (LON:MATD) expects to kick off its new exploration drilling campaign in Mongolia during the second quarter following the receipt of drill permits.

A recent US$16.8mln equity funding is to pay for four new wells. The first, the Wild Horse exploration well, located in Block IV, is going to be drilled by a contracted Sinopec rig.

Wild Horse is targeting a 290mln barrel oil prospect. The well is expected to be drilled and log in 30-45 days, and it is expected to cost US$4mln.

Petro Matad chief executive Mike Buck described it as “a very exciting time” for the company as it advances towards “one of the highest impact drilling campaigns” by an independent explorer in Mongolia.

“We are now deep into the preparation phase to spud our first well at Wild Horse-1 in Q2 2018.

“We are pleased to see that rig availability for our planned drilling in Block XX looks good. I look forward to updating the market on our progress as our preparations for this highly active year continue".

After Wild Horse, the Sinopec rig will move on to drill the Falcon prospect, in Block V.

As preparations advance, meanwhile, Petro Matad is “making progress” in its efforts to secure a drill rig for two more planned wells which will be drilled in Block XX and are pencilled in for the second half of the year.

At the same time, the company continues to await processed data from recently acquired 2D and 3D seismic exploration. Petro Matad told investors that the data quality seen to date has been “very good” and the final products are anticipated before the end of this quarter.