Petro Matad (PRTDF)

[plumo]

Petro Matad to Get $10 Million from Shell Affiliate

LONDON--Petro Matad Ltd. (MATD.LN) said Friday that a affiliate of Shell has agreed to pay $10 million to exit from production sharing contracts for Block IV and V located in west and central Mongolia, respectively.

The exploration company said BG Mongolian Holdings Ltd. will also pay a further $5 million upon completion of the reassignment of its stake. The $5 million payment is refundable should the company secure a partner for any of the two blocks.

Shares of Petro Matad at 0840 GMT trading 62.8% higher at 3 pence.