Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Completed technical and biological restoration of previous drilling sites and related campsites in Block XX, receiving the Handover Act from the Ministry of Mining and Heavy Industry.
• Zero environmental incidents, lost time incidents, or recordable incidents during 2021.
• Successfully relinquished the exploration area outside the Exploitation Area in Block XX after receiving the Exploitation License.

Social Achievements

• Donated PPE and medical equipment to hospitals in Matad Soum and Dornod Aimag to assist in the fight against COVID-19.
• Continued to focus on disseminating accurate information about Petro Matad and its planned operations, engaging with the local community and government on best practices and land access matters.
• Developed and adopted a Social Development Policy to contribute to the social development of communities near exploration activities.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operational activities and international travel.
• China’s COVID-19 restrictions and Mongolian land law inconsistencies impacting the timing of oil field programs.
• Conflicts in Mongolian land laws impacting mobilization without legally valid permits.

Mitigation Strategies

• Secured the approval for the Plan of Development (PoD) for the Heron discovery and obtained the Exploitation Licence for Block XX.
• Completed a successful equity fundraise totaling $10.4 million.
• Reached an agreement with MRPAM to pursue export of Heron crude through PetroChina’s facilities.
• Continued to push for local and central government action on land law conflicts.

Supply Chain Management

Responsible Procurement

• Working with contractors to ensure HSSE standards are maintained.

Climate-Related Risks & Opportunities

Opportunities

• Use of CO2 injection as an enhanced oil recovery mechanism.

Reporting Standards

Frameworks Used: QCA Corporate Governance Guidelines for AIM Companies (QCA Code), IOGP best practices and guidelines, ISO 14001 (benchmark)

Certifications: ISO 14001, ISO 45001

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Technical restoration of drilling mud sumps at Heron-1 and Gazelle-1 well sites completed in compliance with regulations.
• Detailed Environmental Impact Assessment (DEIA) for Velociraptor-1 approved by the Ministry of Environment and Tourism (MET).

Social Achievements

• Implemented several projects and programs such as landfilling of district waste disposal sites, donation of patient monitors and beds to local medical facilities, providing funding to support herders to replenish their livestock, financing community tree planting projects in Blocks V and XX.
• Zero Lost Time Injuries (LTI) for seven consecutive years.

Governance Achievements

• Continued to follow the QCA Corporate Governance Guidelines for AIM Companies (QCA Code).
• Established an Audit Committee, a Remuneration Committee, and a Corporate Governance Social Action and Environmental (CGSAE) Committee.

Climate Goals & Targets

Environmental Challenges

• Ongoing land access dispute on Block XX hindering Heron development.
• Covid-19 related travel and border restrictions impacting operations.

Mitigation Strategies

• Working with MRPAM and MMHI to resolve land access issue through legal process.
• Pursuing plans for 2023 operational season including drilling of Velociraptor-1 well and procurement of equipment for Heron-1 development once restrictions eased.

Supply Chain Management

Responsible Procurement

• Working with contractors to ensure HSSE standards are maintained.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: QCA Corporate Governance Guidelines for AIM Companies (QCA Code), IFRS

Certifications: ISO 14001 (mentioned as benchmark), ISO 45001 (mentioned as benchmark)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Technical and biological restoration of the Velociraptor-1 wellsite completed in full compliance with regulations.
• Relocated and replanted 44 Zag trees, and planted over 670 Zag seedlings in Block V.
• Completed restoration of the Heron-1 drilling location.

Social Achievements

• Successfully implemented CSR projects in Block V, including school furnishings, water wells, gers, greenhouses, and livestock restocking, highly appreciated by local communities.
• Hosted Matad District Citizens’ Representatives Committee on a visit to the South Gobi, resulting in declared support for the Company’s development activities and agreement on a Cooperation Agreement.

Governance Achievements

• Continued to follow the QCA Corporate Governance Guidelines for AIM Companies (QCA Code).
• Maintained zero Lost Time Injuries (LTI) for eight consecutive years.

Climate Goals & Targets

Environmental Challenges

• Land access issue in Block XX prevented completion of the Heron-1 well and first oil.
• Slow progress in the government’s process to certify Block XX as Special Purpose land due to conflicts in the Mongolian Land Law and local disquiet.
• Velociraptor-1 exploration well did not encounter hydrocarbons.

Mitigation Strategies

• Secured State Special Purpose certification of Block XX in July 2023.
• Secured District level land approvals for three areas within the Block XX Exploitation Licence in early 2024, allowing work to proceed.
• Continued discussions with PetroChina for production operations support and access to facilities.
• Submitted applications for two blocks in Mongolia’s Exploration Licensing round and was selected as the preferred contractor for both.

Supply Chain Management

Responsible Procurement

• Procurement of meat and milk from locals for the drilling camp.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: QCA Corporate Governance Guidelines for AIM Companies (QCA Code), IFRS

Certifications: ISO 14001, ISO 45001