The board of directors at Mongolia’s Petro Matad said June 22 that the final condition for the farm out of blocks IV and V was waived by BG Group, making the farm-out unconditional. The blocks are in central Mongolia near Gobi-Altai Basin and Central Gobi Basin.

Petro Matad received about US$2.7 million in cash from BG Group, and transferred 78% working interest to BG. Over the next 30 months, $1.8 million in cash will be received, with $300,000 being received shortly, the company said.

An official signing ceremony for the farm-out took place in Ulaanbaatar with the British ambassador to Mongolia and representatives from the Mongolian government, BG Group and Petro Matad.

The farm-out’s work program includes high-resolution aeromagnetics, 2,000km of 2-D seismic, two core holes between 1,500m and 2,000m, and two 3,500-m exploration wells.

The wells will probably be drilled in 2016, and the rest of the work program will be underway this year, the company said. Drilling the wells in 2016 will allow more time to analyze other new data relevant to the wells’ location.

Tenders for seismic, core hole drilling and other activities were issued, and bids are being evaluated. Contracts will be awarded in a few weeks, the company said. The exploration wells’ tender will be issued in this year’s third quarter, the company added.