Petro Matad receives government approval for farm-out in Mongolia

Source: Digitallook.com

Petroleum explorer Petro Matad Ltd. has received government approval for the farm-out to BG Group for some of its properties. BG has agreed to shared ownership of Petro Matad's 78 percent interest in blocks IV and V in central Mongolia in exchange for its services. Petro Matad said it had low cash reserves, but continues to be "highly confident" that the remaining condition of the farm-out will be completed before the reserves run out.

In case of a delay, the company is in talks with a potential provider of short-term funding.