Mongolian oil company Petro Matad has faced disappointing results at the Velociraptor-1 exploration well in Block V, located in central Mongolia's Taats Basin. After reaching a total depth of 1,500 meters (4,921.26 feet), wireline logging confirmed that all encountered reservoirs contained water, according to a statement from the company.

The well came close to meeting the expected prognosis at all levels. The primary objective, the Late Jurassic/Early Cretaceous Undur Formation, was encountered at 1,170 meters (3,840 feet) and exhibited good quality reservoir sands interbedded with shales over an interval of approximately 200 meters (656 feet).

Petro Matad also drilled three thick sand units in the secondary objective, the Early Cretaceous Shinehudag Formation, which showed an average porosity of around 18 percent. However, wireline logs confirmed that both primary and secondary objectives were water-wet.

Initially, the company had estimated the prospect to hold around 200 million barrels of mean prospective recoverable resources. With a 100 percent working interest in the project, Petro Matad believed there was a 20 percent chance of success, which was relatively high for a frontier exploration well. The well will now be plugged and abandoned, and the rig demobilized.

Despite the disappointing outcome, Petro Matad expressed its commitment to utilizing the data obtained from the well to further evaluate the hydrocarbon potential of Block V. The company plans to incorporate the results into its overall assessment before pursuing any further operational activities in the area.

Mike Buck, CEO of Petro Matad, acknowledged the disappointment but emphasized the importance of exploring high-impact targets in frontier areas, even if results may not meet expectations. He highlighted the company's shift in focus back to Block XX, where the Heron development offers near-term oil production and revenue generation. Additionally, low-risk exploration opportunities in the vicinity provide potential upside for the company.