Petro Matad has started production from the Gazelle-1 well in Mongolia at an initial rate of 200 barrels of oil per day (bopd), following testing and installation of surface facilities last month. 
This initial production rate was set after analysing pressure data from the well test to reduce the risk of early water breakthrough. 
Petro Matad said that it will closely monitor well performance to assess whether the production rate can be increased. 
The company is processing Gazelle-1 crude for export, with the first shipments delivered to the Block XIX TA-1 processing and export facility under its current oil sales agreement with PetroChina. 
Heron-2, another well operated by Petro Matad, is undergoing a retest. 
Temporary pumping facilities have recovered around one-third of the remaining injected fluid, which contains stimulation fluid and an increasing proportion of oil. 
However, the operation experienced a decline in flow, which may indicate a downhole issue or obstruction. 
The well was shut in to realign the beam pump but has since resumed pumping. 
If fluid recovery rates remain low, Petro Matad will shut the well in for the winter and consider further remediation options. 
Petro Matad’s Heron-1 well has produced a total of 59,920 barrels (bbl) of crude oil, with a daily average of 164bbl, since it started production in October last year. 
The water cut has remained around 3%, and current daily production is around 145bbl, consistent with typical performance in the region. 
Petro Matad has prepared the infrastructure to connect Heron-1 to the national electricity grid, with commissioning subject to regulatory approval. 
The company is working with the Mineral Resources and Petroleum Authority of Mongolia to expedite the process. 
It has received funds for oil delivered up to August 2025 under its agreement with PetroChina. 
The company is currently negotiating with PetroChina to finalise the revised sales agreement and confirm a payment schedule for previously withheld amounts. 
Petro Matad CEO Mike Buck said: “Our operations team has worked hard to get the Gazelle-1 well ready for production in short order. We will closely monitor well performance to maximise production balanced with prudent reservoir management. 
“We are very pleased to be able to increase production and revenue generation so quickly after the successful Gazelle-1 well test and to add this to the consistent performance of Heron-1. Meanwhile, Heron-2 continues to present challenges. 
“We still hope to get an oil rate out of the well this year or, at the very least, enough information to allow us to prepare for another operationally appropriate attempt to do so after this winter’s operational shutdown. 
“PetroChina has been slow to respond on the rewording of the oil sales agreement but progress is being made.”

Published Date:2025-11-07