PETRO MATAD SUSPENDS OPERATIONS AFTER ANIMAL DISEASE HITS DRILL LOCATION

Petro Matad has said that an outbreak of foot and mouth disease has forced it to temporarily suspend operations at its Davsan Tolgoi project in Block XX in Mongolia. The company has been preparing for the commencement of drilling of the DT-1 well when the disease hit the Dornod province, which hosts Davsan Tolgoi. Last month, the company announced that the 2009/2010 three-hole drilling program on the Davsan Tolgoi prospect on the company's Block XX was due to restart shortly following the winter shutdown.
The governor of the province has imposed blanket vehicle and personnel movement restrictions in and out of the area, preventing supply trucks from reaching DT-1, while no personnel currently on site is permitted to leave. The order will stay in place until June 9, 2010.
The spudding of DT-1 is imminent, but the company has decided that it would not be practical to commence drilling with the aforementioned restrictions in place from the engineering, logistical and safety standpoints. “While this delay is inopportune and mildly frustrating to the management and shareholders, we are fully cooperating with the local authorities to ensure the limitation and elimination of this potentially disastrous disease from our area of operation…we will be monitoring and assisting over the next 10 days and hope for a speedy resolution and re-commencement of operations,” said Chief Executive of Petro Matad Douglas McGay.
Source: Petro Matad Limited

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