- Petro Matad said it was preparing to start drilling a well in Mongolia after achieving verbal approval from local authorities that had been delaying its progress.

The rig for the Heron-1 well had been put on standby, at an ongoing cost to the company, pending the resolution of a dispute over land use.

'The company can now report that the central and provincial governments are resolving their issues and have given verbal approval for the company to resume operations whilst the necessary paperwork is completed,' Petro Matad said.

Preparations were now being made to drill the well, while the company also worked with the local governor to sign a land use agreement.

The signed agreement was expected to be executed 'within the next few days'.

Total standby costs incurred to date were of the order of $150k.

'The company hopes to be able to make up some of the time lost on standby and based on current forecasts, drilling operations on Heron-1 and Gazelle-1 can be completed well within the normal operating period of the Mongolian drilling season.'

At 9:57am: [LON:MATD] Petro Matad Ltd share price was +1.38p at 7.28p

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