Pre-tax losses for the year through December amounted to $16.8m, compared to losses of $18.4m on-year.

The company said three wells in Block XX -- Heron-1 and Gazelle-1 in the northern part of the block and Red Deer-1 in the southern area -- were completed within the 2019 drilling season and within budget.

All three found oil shows, with Heron-1 declared a discovery after recording one of the highest flow rates recorded in Mongolia with 821 barrels of oil per day produced during drill stem testing.

Gazelle-1 found two thin oil pay zones, however, due to the onset of winter weather the well was suspended as a potential oil discovery without being tested and so will be fully evaluated in the future.

Red Deer-1 was plugged and abandoned with no oil pay zones detected.

'The impact of the Covid-19 pandemic on Petro Matad's activities has been limited as government ministries have been open and functioning as normal throughout,' the company said.

'The company is liaising with the authorities and taking all precautions to ensure the safety of its staff and contractors.'

At 9:30am: [LON:MATD] Petro Matad Ltd share price was +0.1p at 3.95p

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