Under the terms of the accord, BG will pay Petro Matad’s share of a mutually agreed $28m work programme. BG will also provide additional cash consideration $4.55m, which will be used to fund ongoing operations and obligations by Petro Matad.
Petro Matad said that the work, which would include Airborne FTG Gravity and magnetics, 2D seismic, core holes and exploration wells, will be undertaken in 2015 and 2016. Petro Matad said the farm-out agreement concerns Block IV and Block V in central Mongolia.
The transaction is subject to the receipt of Mongolian Government approval and other Mongolian regulatory formalities.
Petro Matad acting chairperson Dr Oyungerel Janchiv said: "As a result of this transaction Petro Matad will be fully funded in relation to the remaining licence commitments on Blocks IV & V."
Upon completion of the transaction, Petro Matad will retain a 100% interest in Block XX and will hold a 22% interest in Blocks IV and V.
