Petro Matad Ltd on Monday said it will abandon the Velociraptor-1 well in Central Mongolia as all reservoirs encountered were water bearing.

The Douglas, Isle of Man-based petroleum exploration company focused on Mongolia said the exploration well in the Taats Basin of Block V reached a total depth of 1,500 metres.

Chief Executive Officer Mike Buck said: ‘The results of the Velociraptor-1 well are obviously disappointing but such high impact targets, drillable at modest well cost cannot be ignored when exploring frontier areas. The well provides a valuable new data point to help unlock the hydrocarbon potential of the southern Gobi. We will now incorporate the well results into our overall evaluation of the area.’

Petro Matad shares fell 14% to 4.17 pence each in London on Monday morning.

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