Mongolia-focused oil explorer Petro Matad has said that
analysis carried out on the drilling results of its first well in Eastern
Mongolia confirmed that oil was present, sending its shares soaring. The
company has  said that its
Davsan-Tolgoi-1 (DT-1) exploration well encountered a 12-meter zone of oil,
having said earlier in July that the well had seen oil shows and elevated mud
gas as it neared its total depth of 1,220 meters.

“The completion of the wireline testing of DT-1
confirms that good reservoir quality should be expected along the length of the
Davsan Tolgoi trend,” said chief executive Douglas McGay in a statement.
“We are very happy with the initial results from our first well to date, and
look forward to the completion of the analysis.” The DT-1 well was the first of
Petro Matad”s planned three-well drilling campaign. The rig will now be moved
to drill its second well.