Shares were down 11% Thursday at 11.05 pence each.

Petro Matad has been interpreting 3D seismic volumes from Tugrug through March and April, with the frequency content of the data "excellent", and it said the fault plane reflections are "remarkably" well-defined which is significantly helping mapping the complex Falcon prospect.

The company said based on these results the fault block originally targeted for drilling in the centre of Falcon is smaller than thought. However, the data does confirm a large and well-defined fault to the east which Petro Matad said is much larger than in original mapping.

More detailed work is needed, it said, to progress these prospects to drillable status.

Petro Matad also said Thursday it is to focus drilling on the Snow Leopard prospect in to the second quarter, deferring drilling on block V. Snow Leopard is less complex, it said, and it is part of a confirmed source and reservoir outcrop.

Snow Leopard has all permits required save for a land use permits which is now being renewed, which it said is "a routine matter". Plans are on track for site construction to start in May, with drilling to cost around USD7.0 million lasting around 70 days.

Following this Petro Matad will drill the Wild Horse prospect in block IV, with permitting going well, it said. The most time consuming part, the detailed environmental impact assessment, has been submitted, and approval is expected imminently.

The tender for a drilling rig on block XX is nearly finished, and it expects to secure "a good quality contractor" for drilling as early as the second half of 2018, if possible.

Chief Executive Mike Buck said: "The company's decision to shoot 3D seismic over the structurally complex Tugrug Basin was a good one. The new mapping on the 3D indicates that we have some excellent targets but we do not wish to delay our exploration efforts in 2018 whilst they are matured to drillable status.

"Snow Leopard and Wild Horse are two large, well defined and exciting prospects with huge follow up potential. As the firm two well programme for blocks IV and V in 2018, they will tell us a lot more about the potential of the area and we are moving ahead rapidly with preparations to start drilling during this quarter. Planning, procurement, and permitting for drilling in block XX are also advancing well."

By George Collard; georgecollard@alliancenews.com