Matra declares a two stage placing of 535,000,000 new ordinary shares at 1p per share in order to raise £5.35 million (the “Placing”). Completion of the first stage of 123,050,000 new ordinary shares, raising £1,230,500, is expected on 10 July 2009 with the remaining 411,950,000 new ordinary shares to be issued, subject to shareholder approval at an Extraordinary General Meeting expected to be held on 24 July 2009.

The majority of the funds raised (approximately £3.88 million) will be used to drill Well-13, the up-dip appraisal well to the Sokolovskoe discovery well on the Arkhangelovskoe License in Orenburg, Russia. The remainder of the funds raised will be applied for working capital, overheads and the costs of the Placing.

Delek-International Energy Ltd has subscribed for 29.3% of the shares being issued in the Placing. Macquarie Bank Ltd has subscribed for 28% of the shares being issued which, on completion of the Placing, will result in a 15% holding in Matra, subject to shareholder approval. The Placing was oversubscribed.

Matra’s Managing Director, Peter Hind, said, “We are delighted to have received support from existing and new shareholders for the fundraising and look forward to drilling the appraisal well on the crest of the Sokolovskoe Field as soon as possible. Whilst the recent market conditions have inevitably caused us some delays, we have been able to put that time to good use with internal technical work and we will also benefit from reduced drilling costs.”

Tags: Matra Petroleum