Matra Petroleum: Proposed Disposal of Arkhangelovskoe Licence
Matra Petroleum is pleased to announce that it has signed an agreement to dispose of its 100% interest in the Arkhangelovskoe Licence which includes the Sokolovskoe Field, to a third party, consisting of an initial payment of US$25 million with a further payment of US$10 million payable within nine months, conditional on drilling results.
Having commissioned a seismic survey on the Sokolovskoe Field, leading to the revised management estimate of 2P Recoverable Reserves of 13.5 mmbbls, the Board conducted an extensive review of the conceptual Field Development Plan and associated economic forecasts, as well as investigating other options for maximising the value of the Sokolovskoe Field for shareholders.
The Board believes that the disposal of the licence for a consideration of up to $35 million represents compelling value when compared to the capital costs required to develop the asset and the technical risks associated with the field.
The proposed monetisation of the Arkhangelovskoe Licence is consistent with the Company’s growth strategy and will provide the Company with increased flexibility to pursue new upstream investment opportunities, with the potential to create significant value for Shareholders.
The Disposal is subject to Shareholder approval and a circular and notice of General Meeting will be sent to Shareholders shortly. Further details of the Disposal and the Company’s proposed Investing Policy are set out below.
Commenting on today’s announcement, Chief Executive of Matra Maxim Barskiy said:
“We believe this sale crystallises significant value for shareholders, demonstrating our ability to monetise assets at an appropriate stage and mitigate downside risk. The proceeds provide financial flexibility, helping to fund future acquisitions which fits our strategy of building a significant mid-cap oil and gas company.”
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