Petro Matad (the “Company”) is an AIM-quoted Mongolian oil explorer

The Company has raised US$16 million (subject to shareholder approval) via a placing with new institutional investors and subscription for new Ordinary Shares in the Company by existing shareholders and directors of the Company (the “Fundraising”). The Fundraising is subject to shareholder approval at a General Meeting of the Company, scheduled for 0830 on Thursday 08 February 2018. Assuming shareholders give approval to the Fundraising, Admission is expected to occur at 0800 on Friday 09 February 2018.

A total of £100,000 worth of new ordinary shares in Petro Matad priced at 6.5p per share are being made available to onboarded users of the Teathers App. The deal will open at 0800 on Monday 22 January and will close at 1600 the same day or when the deal has been fully subscribed for.

Trading will commence on the settlement date of Friday 09 February 2018 (“Admission”). Contract notes will be issued on completion of the deal, on Admission.

  • The New Ordinary Shares will represent, in aggregate, approximately 35.9 per cent. of the Company’s issued ordinary share capital immediately following Admission.
  • The Fundraising will allow the Company to re-launch its exploration and appraisal activities in Mongolia, led by industry veteran Mike Buck as CEO, following his appointment in October 2017
  • The net proceeds of the Fundraising will be used to fund up to four wells as part of a drilling campaign across the Company’s significant, 100% owned, acreage position in Mongolia
  • The drilling programme will consist of up to two wells in Blocks IV and V in Western Mongolia and two wells in Block XX, immediately adjacent to the producing Block XIX
  • The 2018 drilling campaign is planned to target a combined estimated prospective resource of 398mmbo with an expected combined drilling cost of US$15.5 million
  • The Company has contracted a Sinopec drilling rig to undertake the drilling of the two wells in Blocks IV and V, with the spudding of the first prospect anticipated for early May 2018

For further and more detailed information about the Fundraising and the Petro Matad please refer to the Company’s announcement released on Friday 19 January ––matd-/rns/us-16-million-fundraising/201801191230014175C/

Stockdale Securities Limited (“Stockdale”) is acting as Nominated Adviser and Joint Bookrunner to the Company in connection with the Fundraising. Stifel Nicolaus Europe Limited (“Stifel”) and Pareto Securities AS (“Pareto”) are acting as Joint Bookrunner to the Company in connection with the Fundraising (together with Stockdale, the “Joint Bookrunners”).

Mike Buck, CEO of Petro Matad, commented: “I am pleased to announce the completion of this significant, oversubscribed fundraise; through the support of new and existing shareholders we are targeting a substantial and unprecedented exploration campaign for an independent E&P company in Mongolia.

We are uniquely placed in Mongolia; with an extensive acreage position and large resource range and with the access to a suitable rig, the 2018 drilling campaign will allow us to unlock the prospectivity in a timely and economic fashion, providing near term catalysts and longer term value.

This is a very exciting time for Petro Matad and in my experience, opportunities of this magnitude are rare and with the support of the market we are focussed on delineating the significant potential contained within our portfolio.

Stock Specific Risks

  • The company will be subject to typical oil and gas exploration and development risks. There is no guarantee the company will be able to define economically viable resources.
  • Any delay to the development timeline would disappoint the market and sentiment towards the shares.
  • Commodity prices will fluctuate, which could affect the economic feasibility of the project.

If you are buying outside of normal market size then this may prevent you from selling the shares at market price.

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