Petro Matad soars as Gazelle well beats expectations

Petro Matad Limited shares surged 29% after its Gazelle-1 well in Mongolia exceeded expectations, flowing up to 460 barrels of oil per day without artificial lift during testing. The company is now preparing the well for production, targeting start-up before the end of October, with CEO Mike Buck highlighting the potential for significantly increased daily production revenue.

Analysis

Petro Matad soars as Gazelle well beats expectations Published: 09:47 09 Oct 2025 BST Petro Matad Limited (AIM:MATD, OTC:PRTDF) shares soared in Thursday's early trade after its Gazelle-1 well, in Mongolia, exceeded expectations during testing, flowing up to 460 barrels of oil per day without artificial lift. The well is now being prepared for production, with completion and installation of surface facilities underway. Gazelle-1 was perforated across an 8-metre zone in the Tsagaantsav Formation, and flowed at stabilised rates ranging from 160 to 460 barrels per day on varying choke sizes. No water was produced and oil gravity was measured at 43° API. "We are delighted that the results from the Gazelle-1 well test have exceeded our expectations and we are prioritising getting the well onstream as it shows the potential to significantly increase our daily production revenue," chief executive Mike Buck said in a statement. The company said it is targeting production start-up before the end of October. In London, Petro Matad shares climbed 29% to 1.07p. Petro Matad Limited (AIM:MATD) shares surged 29% to 1.07p in London following the successful testing of its Gazelle-1 well in Mongolia. The well significantly exceeded expectations, flowing up to 460 barrels of oil per day (bopd) naturally without artificial lift. This positive development led to a strong market reaction, reflecting increased investor confidence and a strongly positive market sentiment. Testing revealed stabilized flow rates ranging from 160 to 460 bopd across an 8-meter perforated zone in the Tsagaantsav Formation. Crucially, the well produced no water, and the oil gravity was measured at a high-quality 43° API, which underscores the technical viability and commercial attractiveness of the discovery. The company is now prioritizing getting Gazelle-1 onstream, with completion and surface facility installation underway, targeting production start-up before the end of October. CEO Mike Buck emphasized the well's potential to "significantly increase our daily production revenue," indicating a material and immediate impact on the company's financial performance and an optimistic near-term outlook for cash flow generation.

Key Decisions for Investors

• Investors should re-evaluate Petro Matad’s production forecasts and cash flow models given the high flow rates of up to 460 bopd from Gazelle-1, which the CEO expects to significantly increase daily production revenue.
• Closely monitor the company's progress toward the targeted production start-up before the end of October, as timely execution is critical to realizing the anticipated financial benefits.
• Consider the implications of this successful well for the broader exploration potential of Petro Matad's Mongolian acreage, although further drilling success would be required to confirm this.