Petro Matad Unlocks Withheld Payments and Progresses Oil and Renewable Energy Projects in Mongolia

Petro Matad Limited (LSE:MATD) has settled a revenue dispute with PetroChina, securing $1.03 million in production payments from 2025 that had previously been withheld. The company said it is nearing completion of its 2026 Oil Sales Agreement while continuing stable production from its Heron-1 and Gazelle-1 wells on Block XX.

Alongside its oil operations, Petro Matad is advancing discussions to farm out interests in Blocks XX and VII. It is also moving forward with a 200MW hybrid renewable energy project combining wind, solar and battery storage, in addition to developing green hydrogen and energy storage initiatives that could expand its footprint in Mongolia’s developing clean-energy export market.

Its renewable subsidiary, SunSteppe Renewable Energy, has completed key feasibility assessments, environmental studies and grid connection work for the 200MW hybrid project in Tuv Province. The project is targeting Ready-to-Build status in 2026, with reported interest from international partners.

Work continues on green hydrogen developments at Oyu Tolgoi and a 50MW battery energy storage system (BESS) project in Choir, although progress has been slower than initially anticipated. Cross-border collaboration with Chinese and Saudi partners is also underway, supporting Mongolia’s positioning as a potential regional exporter of renewable electricity.

The company’s financial outlook remains pressured by weak profitability and persistently negative—and deteriorating—free cash flow, despite strong revenue growth. However, Petro Matad maintains a low-debt balance sheet that provides some resilience. Technical indicators appear mixed to neutral, and valuation remains constrained due to ongoing losses and the absence of dividend data.

More about Petro Matad

Petro Matad Limited is an AIM-listed oil exploration and production company focused on Mongolian assets, particularly Block XX and Block VII. Through its SunSteppe Renewable Energy division, the group is also developing a portfolio of large-scale renewable power, green hydrogen and battery storage projects aimed at serving Mongolia’s domestic demand and potential cross-border energy exports.