Petroleum exploration company, Petro Matad announced today the company has concluded a farm- out agreement with the BG Group of England which will receive 78 percent of its area of block IV V.

The Company has two Mongolian subsidiaries, Petro Matad LLC and Capcorp.

This area is owned by Petro Matad’s subsidiary company, Capcorp. According to the contract petroleum exploration works valued at 28 million USD will be undertaken at these two blocks.

J. Oyungerel, head of the Board of Directors stated ““I am very delighted to introduce the conclusion of this agreement which leads us to the next level in areas of block IV, V. The decision of BG group to conduct activity in Mongolia proves the evaluation of work carried out by Petro Matad in these two areas. I believe we will enjoy a long term partnership with BG Group”

BG Group’s 2014 revenue was 20 billion USD and is listed in the FTSE 100 list of the London Stock exchange.

After the announcement of the conclusion of the contact prices for shares of Petro Matad listed on the London Stock Exchange increased by 60%.