Matra is pleased to announce a placing of 66,666,667 new ordinary shares at 3p per share to raise £2 million, before expenses ("the Placing"). The Placing was significantly oversubscribed. Matra's application for the Production License over the Sokolovskoe Field is now well advanced and a payment of approximately £850,000 will be required at the time of issue.
The remainder of the funds raised will be applied to working capital and, in particular, the advancement of new ventures.
Delek-International Energy Ltd has agreed to subscribe for 20,000,000 Placing Shares. Sir Michael Jenkins, Chairman of Matra, has agreed to subscribe for 333,333 Placing Shares.
The Placing, which is being carried out under the existing powers of the directors, is conditional, amongst other things, on completion of the placing agreement entered into between the Company and Hanson Westhouse Limited. Application has been made for the Placing Shares to be admitted to trading on AIM, which is expected to take place on 27 November 2009 when the Placing will complete.
The Arkhangelovskoe License is held 100% by Matra’s 100% owned subsidiary, "OOO" Arkhangleovskoe. This license was extended in mid-2009 to the North to include the full extent of the Sokolovskoe Field.
Following the grant of this extension, a revised Production License application was filed over the Northern part of the license covering the Sokolovskoe Field.
Prior to 2009 the payment required to be made at the time of award of a Production License, within an Exploration License, was based on prior exploration expenditures made by Russian authorities within the Production License area. In 2009 the basis of this payment changed to a formula based on estimates of future Mineral Extraction Tax payments. In the case of Sokolovskoe this payment has been estimated to be approximately £850,000, although the exact amount will be finalised at the time of License award.
Matra's strategy includes the acquisition of further assets within the Volga/Urals region. In this respect the Company has continued to review new opportunities that would add significant value. In order to take advantage of appropriate opportunities that arise, in a timely manner, the Company has increased its efforts in this area.
Matra's Managing Director, Peter Hind said, "The award of the Production License will be a significant step for Matra. Once the current well is completed, we will have a better understanding of the scope of the development project. Now is the time to focus some of our attention on growing the company through the pursuit of the new venture opportunities that are available, for the benefit of our shareholders."