Petro Matad has obtained verbal approval from the central and provincial governments of Mongolia to resume operations on its Heron-1 well, while paperwork is completed following a land-use dispute.
The AIM-listed oil explorer said the rig had been put on standby on August 5th.
Preparations are now being made to drill the eight-and-a-half inch hole section on the well and the company is working with the local governor to sign a land use agreement, Petro Matad said.
The signed agreement is expected to be executed within the next few days. Petro Matad added that total standby cost are around $150,000.
Looking ahead, the company said it hopes to be able to make up some of the time lost and, based on current forecasts, drilling operations on Heron-1 and Gazelle-1 can be completed within the operating period of the Mongolian drilling season.