Company Update

RNS Number : 8230P

Petro Matad Limited

11 June 2015

 

11 June 2015

Petro Matad Limited

("Petro Matad" or the "Company")

Company Update

The Board of Directors of Petro Matad is pleased to announce that the Government of Mongolia has formally approved the farmout of a portion of Petro Matad's participating interests in Blocks IV and V in Central Mongolia. The key terms of the farmout were previously announced by the Company on 7 April 2015.

In formal recognition of the approval by the Mongolian government a tripartite Protocol of Assignment has been signed by an authorised representative of the government. This follows earlier approval by the Mongolian Cabinet. This same Protocol had previously been signed by authorised representatives of BG and Petro Matad as part of the process for agreeing the farmout.

The transaction remains subject to one further BG Group condition.  Upon satisfaction of this condition the Company will issue a further announcement together with an operational update on preparations for the commencement of work programme activities.

Whilst the Company's current cash reserves are low the Board of Directors of Petro Matad are highly confident that the remaining condition to the farm-out will be resolved before these reserves are depleted. In the event that the farm-out does not complete within the next few weeks the Company is in talks with a potential provider of short term funding to ensure that the Company will have access to the necessary cash resources to be able to continue to operate until the farmout is completed. However, at the current time, nothing has been agreed in this regard and there can be no certainty that any agreement will be forthcoming.

About Petro Matad Limited

Petro Matad is the parent company of a group focussed on oil exploration, as well as future development and production in Mongolia. At the current time, Petro Matad holds the sole operatorship of three Production Sharing Contracts with the Government of Mongolia. Block XX has an area of 10,340 km² in the far eastern part of the country, and Blocks IV and V have an area of 28,900 km² and 21,100 km², respectively, in the southwest part of the country.

Petro Matad Limited is incorporated in the Isle of Man under company number 1483V. Its registered office is at Victory House, Prospect Hill, Douglas, Isle of Man, IM1 1EQ.

Further Information:

Petro Matad Limited

John Henriksen, CFO

[phone]

NOMAD and Broker

Westhouse Securities Limited

Alastair Stratton / Martin Davison

[phone]

Financial Advisor in relation to the transaction

Macquarie Capital (Europe) Limited

Jon Fitzpatrick / Luke Kanczes

[phone]

 

END

 

 

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