Petro Matad (LSE:MATD) reported a loss of US$0.59 million for the six months ended 30 June 2026, compared with a loss of US$1.7 million in the same period a year earlier.
The company’s cash balance increased to US$2.76 million from the prior-year level.
Production from the Heron-1 and Gazelle-1 wells in Mongolia’s Block XX averaged 241 barrels of oil per day during the period, with 41,941 barrels of crude delivered for sale.
However, Petro Matad said it had not received revenue from these sales due to delays in finalising its 2026 Oil Sales Agreement with PetroChina. The company reported that US$2.16 million remains outstanding.
Block XX Production Shut In During September
Petro Matad deferred planned seismic work and additional well operations as it sought to conserve cash while the oil sales agreement remained unresolved.
Production continued following the end of the reporting period until September, when PetroChina instructed Petro Matad to shut in production as available storage approached capacity.
The company said it has raised the issue with Mongolian authorities, which are supporting efforts to obtain approval for the sales agreement.
Petro Matad is also continuing farm-out discussions covering Blocks XX and VII with international and Chinese counterparties.
SunSteppe Secures Exclusivity Over 290MW of Renewable Projects
Petro Matad’s SunSteppe Renewable Energy joint venture progressed several renewable energy projects during the period.
SunSteppe secured exclusivity over three projects with combined planned capacity of 290MW. These include two 100MW solar and battery storage projects that have been prioritised by the Mongolian government and have received feasibility study approvals and construction licences.
A consortium led by SunSteppe Renewable Energy was also ranked first for a proposed 90MW project intended to support the electricity grid serving Ulaanbaatar.
Following the reporting period, discussions continued over tariffs and power purchase agreements. SunSteppe is also working with an international partner on the projects.
The company said the projects could generate double-digit returns, although their economics remain dependent on factors including the outcome of tariff and power purchase agreement negotiations.
More About Petro Matad
Petro Matad Limited is an AIM-listed oil and gas company focused on exploration and production activities in Mongolia.
Its principal oil interests include the Block XX and Block VII licences in eastern Mongolia. The group also participates in renewable energy development through its SunSteppe Renewable Energy joint venture, which is progressing solar and battery energy storage projects.
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