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(Sharecast News) - Petro Matad said on Monday that half-year losses narrowed, after the Mongolian-focused energy firm received its first-ever oil revenues.
Production at the AIM-listed firm's Heron-1 well in Block XX, eastern Mongolia, began in October 2024, with oil transported to neighbouring facilities in Block XIX for processing, storage and export to China.
Average production in the six months to 30 June was 165 barrel of oil per day, which helped deliver revenues of $1.02m.
As a result, the net loss came in at $1.67m, compared to $2.56m a year previously.
Mick Buck, chief executive, said: "The start-up of production in Block XX took far too long, but we are delighted to have finally achieved it and to be receiving oil sales revenues for the first in the company's history."
An oil sales agreement was signed with state-controlled PetroChina, Block XIX's operator, in April, allowing revenue payments to begin in mid-June.
However, 30% of total sales revenue was withheld by PetroChina, pending confirmation that it would not be liable for certain taxes.
Buck said: "Over the past few months we have prioritised our efforts to remove PetroChina's withholding, and after the recent meeting with PetroChina we are hopefully that this matter will soon be resolved."
As at 1015 BST, shares in Petro Matad were down 2% at 0.72p.
Since it was founded in 2005, Petro Matad - which is incorporated on the Isle of Man - has drilled a total of 18 exploration wells, one appraisal well and four stratigraphic coreholes in Mongolia.
Heron-1 was discovered in 2019, and an exploration licence awarded in 2021.
However, legal wrangling and issues over access to the land delayed production until 2024.
