Petro Matad offers investors exposure to a fully funded exploration campaign targeting near-field, low-risk prospects as well as basin opening, high-impact potential. The 2018 two-well programme in blocks IV and V will test the yet to be drilled Baatsagaan and Taats basins in the heart of Mongolia, targeting 570mmbo of mid-case prospective resource. In Block XX, close to existing production, two low-cost wells will test extensions of proven plays in H218. In 2019 drilling returns to the Tugrug Basin to test a 200mmbo prospect, close to live oil shows and mapped on 3D seismic, as well as a 48mmbo target on Block XX analogous to producing fields to the north east. Attractive fiscal terms and the scalability of developments enable relatively small oil discoveries to be commercialised in the current oil price environment. Our risked valuation post assumed farm-out value dilution is 30.8p/share at 70$/bbl Brent long term. Valuation remains highly sensitive to oil price assumptions and exploration outcomes.