Matra Exits Hungary to Focus on Russian Assets

Matra has signed an agreement to sell its 40% shareholding in Gemstone Properties Ltd to HHE America Limited for a cash consideration of US $670,000 (subject to minor exchange rate/other adjustments on completion).

Gemstone is the company that holds interests in the Inke Concession and the Mezocsokonya Exploration License in Hungary.

HHE America owns the remaining 60% shareholding in Gemstone.

The value of this asset as of 30/6/08 and reported in the 2008 Interim Accounts was Euros 3,858,722. This transaction will result in an estimated loss of Euros 3,757,083 in the 2008 Accounts.

The cash received will be used to fund ongoing overheads for the UK and Orenburg offices.

Matra Petroleum’s Managing Director, Peter Hind, said, “Matra has decided to exit from Hungary in order to focus on its assets in Russia. Completion of this transaction is expected within the next 5 days.”