Petro Matad licence application delayed by Mongolia Covid outbreak

Mongolian oil company Petro Matad updated the market on its operations and the impact of Covid-19 on Friday, reporting that the country had been “very successful” in containing the coronavirus through 2020, however the first cases of community spread did occur in November.

The AIM-traded firm said the government initially ordered a five-day partial lockdown, but after cases in the community increased, a full lockdown was ordered and was extended until 11 December.

It said the measures imposed by the government included restrictions on all business meetings.

Active cases of Covid-19 in Mongolia currently stood at 445, with around 420 of those due to spread in the community since mid-November.

The number of new cases being reported each day was now decreasing, Petro Matad said, and it was hoped that the government's action would restore stability to the situation.

Looking at its exploitation licence application, Petro Matad previously said it had been waiting for a confirmed date for a meeting with government bodies to review and approve the Heron reserves report as the next step in the process of awarding the Block XX licence.

“The meeting had been scheduled to go ahead in mid-November just as the lockdown was implemented,” the board said on Friday.

“This has forced a postponement of the meeting until such time as lockdown restrictions are eased or until the government can organise a virtual meeting of the relevant personnel.

“Petro Matad is ready for the meeting should it be convened virtually during lockdown or as soon thereafter as can be organised.”

At 1110 GMT, shares in Petro Matad were down 9.64% at 2.48p.