US$16 million Fundraising
Petro Matad Limited (AIM: MATD), the AIM-quoted Mongolian oil explorer, is pleased to announce the successful completion of a US$16 million placing with new institutional investors and subscription for new Ordinary Shares in the Company by existing shareholders and directors of the Company (the "Fundraising").
Highlights
-- A total of 127,420,294 New Ordinary Shares (the "Placing Shares") in the Company were placed with institutional investors (the "Placing") and a total of 59,167,335 New Ordinary Shares (the "Subscription Shares") in the Company were subscribed for by new and existing investors, raising net proceeds of US$16 million (GBP11.5 million) at a price of 6.5 pence per New Ordinary Share, a 11.5 per cent. discount to the average daily volume weighted average price for the three months to 18 January 2018.
-- 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
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."
