Petro Matad Limited (AIM:MATD, OTC:PRTDF) told investors it has now received US$ 1.18 million of oil sales proceeds from PetroChina.
This represents the first revenues from the Heron-1 well, on Block XX in Mongolia.
It represents around 70% due for its invoices, between October 2024 and April 2025, under its oil sales agreement with PetroChina.
After royalty and government revenue shares, the net payment to Petro Matad is US$810,000.
Currently, PetroChina is withholding the other 30% pending confirmation from Mongolian tax authorities that no customs duties, VAT or other taxes apply.
Petro Matad, meanwhile, asserts that the Production Sharing Contract exempts such charges and is actively engaging with regulators to resolve the issue and expedite full payment.
"We are delighted to have received the first payment for Heron 1 oil,” chief executive Mike Buck said.
Buck added: “The withholding of funds for matters raised by Petro Matad during months of discussion that were only declared by the counterparty to be of concern at the last minute is frustrating but we are working diligently to secure the confirmation that PetroChina has requested so that the withheld amount can be paid and future invoices can be paid in full."
Shore Capital, the ‘house’ broker, described the belated receipt of payment as a significant milestone for Petro Matad.
In a note, analyst James Hosie highlighted that the payment confirms expectations over pricing and proceeds (implying receipts of around $51 per barrel on 33,000 barrels of crude).
Looking ahead, meanwhile, Hosie commented: “Discussions are ongoing with potential partners interested in acquiring a stake in Block XX containing the Heron 1 discovery.
“In parallel with these discussions, management is planning for low-cost activity that could increase oil production during FY25F.”
BY Jamie Ashcroft

Published Date:2025-06-19