The Board of Directors of Petro Matad is pleased to announce that the final condition to the farm-out becoming unconditional has been waived by BG Group. The farm-out has therefore achieved unconditional status.

$2,750,000 cash consideration has been received today from BG Group and the transfer of 78% working interest in Blocks IV and V to BG Group has now completed. An additional $1.8 million cash consideration is to be received over the next thirty months - $300,000 of which will be received shortly, with the balance being received in increments of $50,000 per month.

In recognition of the completion of the farm-out an official signing ceremony took place earlier today in Ulaanbaatar with the British Ambassador to Mongolia and representatives from the Mongolian Government, BG Group and Petro Matad in attendance.

Tags: BG Group, Petro Matad