Petro Matad Limited announced that the Velociraptor-1 exploration well in the Taats Basin of Block V located in central Mongolia reached a total depth (TD) of 1,500m and wireline logging has been completedbut unfortunately all the reservoirs encountered were water bearing. The well came in close to prognosis at all levels. The primary objective Late Jurassic/Early Cretaceous Undur Formation was encountered at 1,170m and had good quality reservoir sands interbedded with shales over a c. 200m interval.

In the secondary objective Early Cretaceous Shinehudag Formation, three thick sand units were drilled with average porosity of around 18%. Good quality electric wireline logs confirmed both objectives to be water wet. The well will now be plugged and abandoned and the rig will be demobilised.

Operations were carried out on time and as budgeted with the full support and cooperation of the local community. The well results will now be incorporated into the Company's interpretation of Block V before any further operational activity is undertaken in the area.