Petro Matad Limited shares shot up nearly 60 percent in Thursday’s early deals as the explorer landed a new permit from the authorities in Mongolia.
The company, which for over a decade has sought to unearth oil resources from the Mongolian expanse, told investors that the Cabinet of the Mongolian Government has approved the certification of the Block XX Exploitation Area, including the firm’s Heron oil discovery.
It certifies Block XX as special purpose land and gives Petro Matad legal right of access to the entire area for the purpose of hydrocarbon exploration and exploitation, the company noted.
“This important step has been a very long time coming but now provides a firm legal standing to the company to execute the approved plan of development for Heron and to explore the exciting potential around it,” said chief executive Mike Buck.
“I would like to thank all our shareholders and in particular those that have been with Petro Matad for some years now, for their patience during this protracted certification process.”
In a statement, the explorer said it is in talks with service providers to determine a timeframe in which crews and equipment can be available to complete the Heron-1 well for production.
In London, Petro Matad shares were up 1.81p or 46 percent, changing hands at 5.7p and valuing the company at £60.6mln.
Earlier, the share price peaked at around 6.2p per share.