Petro Matad Limited
Petro Matad Limited is the parent company of a group focussed on oil exploration, as well as future development and production in Mongolia. It is exploring in the east of Mongolia, with a Production Sharing Contract on Matad Block XX, in which it is the sole contractor with the Government of Mongolia. Block XX is immediately south of the largest producing oilfield in Mongolia, in the Tamtsag Basin. The Company is currently undertaking seismic surveys designed to define targets for a drilling programme commencing in 2009.
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Petro Matad opts for placement to fund Mongolian projects
Mongolia-focused oil explorer Petro Matad (AIM: MATD) said today it had raised up to US$5.4 million through placing of 23,636,785 new ordinary shares at 14p per share.
In addition to over US$3.3 million raised through the placing of 14,706,609 by its broker Hanson West House Limited, Petro Matad will issue 5,000,000 new shares to Petrovis LLC following another issue back in July, which earned the company US$1.06 million. Another 3,930,176 new shares will be issued through direct subscriptions.
The new shares are expected to be admitted to trading on the Alternative Investment Market of the London Stock Exchange on 3 September 2009.
Petro Matad has raised a total US$6 million during summer to fund the three well drilling programme at its core asset Block XX in Mongolia, which is slated for completion in spring 2010, as well as conduct further exploration on Bogd Block IV and Ongi Block V after securing production sharing contracts (PSCs) for the two projects in July.
The company is currently examining quotations it received from the drilling companies operating in the region and expects to mobilise a suitable rig to Block XX shortly.
Petro Matad has been looking for ways to finance the development of Block XX, finally deciding to raise funds through equity placement.
The total cost of the drilling programme has been budgeted at US$10 million.
Petro Matad is the Mongolian government’s sole contractor in Block XX, a petroleum block of 14,250 sq km (square kilometers) located eastern Mongolia, in close proximity to the country’s largest producing oilfield. Blocks IV and V are located just 500 kilometres south from the Mongolian capital Ulaanbaatar and jointly cover 73,498 sq km.
