Petro Matad has announced that well testing at its Gazelle-1 site has exceeded expectations, with the company now fast-tracking the well for production before month-end.
At long last, some good news from Petro Matad.
The AIM-quoted Mongolian oil company revealed on Wednesday that the well flowed oil and gas to surface without artificial lift after perforating an eight-metre zone in the Tsagaantsav Formation.
Initial flow rates reached 160 barrels of oil per day on a 1/8 inch choke. This jumped to 300 bopd on a larger choke, ultimately achieving approximately 460 bopd on a 1/4 inch choke.
Crucially, no formation water appeared during testing. The oil quality measured 43° API, matching crude from the company’s Heron-1 well.
‘The performance of Gazelle-1 on test has exceeded expectations’, Petro Matad said in an RNS released on Wednesday, adding that production is targeted to begin before the end of October. Neighbouring operator PetroChina has provided equipment from its inventory to expedite completion and start-up.
Petro Matad shares were 30% higher at the time of writing.
The flow rates mean the rig will remain at Gazelle-1 rather than moving to test the Gobi Bear-1 well as planned. That operation has been postponed until April 2026. Investors shouldn’t be too upset that development at Gobi will take a while longer.
Elsewhere, Petro Matad reported progress at Heron-2, where beam pump installation began this month, and confirmed completion of Heron-1’s connection to Mongolia’s national electricity grid.
“We are delighted that the results from the Gazelle-1 well test have exceeded our expectations and we are now prioritising getting the well onstream as it shows the potential to significantly increase our daily production and revenue,” said Mike Buck, CEO of Petro Matad.
“We are also glad to see the start of an efficient down hole clean up at Heron-2 which should give us the definitive results on flowing fluid and well rate that we seek.
“We are disappointed that we will not be able to test Gobi Bear-1 during this operational season but there is minimal additional cost to remobilise for this activity in 2026 and right now, given the enthusiasm with which Gazelle-1 has tested, the production addition must be our first priority.”
Petro Matad was included in UK Investor Magazine’s ‘Top 20 Stock Picks for 2025’ and is currently one of the worst performers, losing 27% year-to-date.

Published Date:2025-10-09