Petro Matad has received an investment commitment of up to $45.2m from Bergen Global Opportunity Fund to finance exploration work programme in its 100% owned Block IV and V Production Sharing Contracts in West / Central Mongolia.
A share purchase and convertible securities deed was signed by the parties and the cash will be provided through a staged private placement in up to 15 tranches, as well as a 24-month, interest-free, unsecured convertible instrument with a nominal value of $2m.
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The funds will be infused into the company’s previously announced two-well exploration programme, wherein it will be advanced by drilling additional basin opener wildcat wells to test the potential of independent basins.
In addition, the company will work on proving the existence of potentially commercial hydrocarbon accumulations by acquiring additional 3D seismic to de-risk prospects over the Tugrug Basin in Block V, or in the case of discovery, to acquire appraisal 3D seismic data.
Petro Matad CEO Ridvan Karpuz said: "We are delighted to have reached an agreement with Bergen Global Opportunity Fund to provide between $20m and $45m of funding for Petro Matad.
“This funding secures our firm work programme for 2017 and 2018, comprising four exploration wells and up to 300km² of 3D seismic acquisition.
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By GlobalData“The Bergen facility is extremely flexible and allows us to effectively manage our cash resources over the next 18 months during a very active operational period for the company.”
The work programme for this year includes the drilling of two exploration wells in Block V followed by in Block IV.
The final location of the drilling targets for 2018 campaign will be based on the results of the 2017 drilling programme and the 3D seismic acquisition programme.
