Matra announce that its wholly owned subsidiary, Matra Petroleum U.S.A., Inc. (Matra USA), has entered into an agreement which allows it to make a series of investments into the US onshore oil and gas sector (the "Purchase Agreement"). Under the Purchase Agreement, Matra USA, through a series of investments, may acquire up to 38,746 net acres, across 50 leases located in the Texas Panhandle, with internally estimated remaining recoverable reserves of 10,575 Mboe, averaging 68% oil, for an aggregate consideration of up to $28.2 million. The leases in aggregate have existing well stock of 221 wells and an estimated 379 new well locations. Current production across the leases is approximately 60 boepd.
The Purchase Agreement is structured such that Matra USA may undertake a phased acquisition of the interests outlined above through a joint venture vehicle. An initial investment of $1.5 million (the "Phase 1 Investment") has been made and a further two phases are expected to be completed by the second quarter of 2014.