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Petro Matad to Spud Davsan Tolgoi-1 Well, Mongolia

Source: www.gulfoilandgas.com 6/23/2010, Location: Asia

Petro Matad is pleased to announce that the Davsan Tolgoi-1 (“DT-1”) exploration well was spudded at 2 a.m. Mongolian time on 23rd June (1900 hours on 22nd June 2010, BST).

The DT-1 well is being drilled vertically to an estimated target depth of approximately 1440 metres.The well is being drilled in accordance with the Company’s drilling contract with Chinese operator Ansai Yuehua Oil Tech Company Ltd ("Ansai Yuehua"). Drilling operations are expected to take approximately 30 days and a further announcement will be made once drilling is completed.

DT-1 is the first exploration well to be spudded as part of Petro Matad’s2010 drilling programme on itsProduction Sharing Contract on Block XX in Eastern Mongolia, one of three exploration blocks owned and operated by the Company in Mongolia.

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