Petro Matad shares surge on strong Gazelle-1 and Heron-2 progress

(Sharecast News) - Exploration firm Petro Matad shares jumped sharply on Thursday on the back of better-than-expected flow test results at Gazelle-1 and operational progress at Heron-2.

Petro Matad said Gazelle-1 flowed oil and gas to the surface without artificial lift, with stabilised rates improving across successive choke sizes and no formation water observed. The well will now be completed for production, with PetroChina providing equipment to expedite start-up before the end of October. Discussions were also underway to incorporate Gazelle-1 into the existing Block XIX sales agreement.

At Heron-2, beam pump installation and offloading facilities were completed earlier in October, with pumping operations now underway. The clean-out was also said to be progressing faster and more efficiently than previous swabbing efforts, with flow rates expected to be confirmed shortly.

Petro Matad also confirmed that Heron-1 has been successfully connected to the national grid, with commissioning of the transmission line and substation expected by mid-October. The move was expected to cut operating costs by around 15% and reduce emissions across Block XX.

The AIM-listed company also noted that it will defer testing of its Gobi Bear-1 well until April 2026 due to winter shutdown constraints, as the rig remains at Gazelle-1 to prioritise production readiness.

As of 1035 BST, Petro Matad shares had shot up 39.39% to 1.15p.

Reporting by Iain Gilbert at Sharecast.com