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Petro Matad raises £13.7mln to fund new well programme

“Petro Matad is now well capitalised to execute a six well exploration drilling programme"

oil and gas operations
New shares were sold at 10p each

Petro Matad Limited (LON:MATD) shares were down 13% on Thursday, absorbing the dilution of a new equity funding.

The Mongolia-focused oil explorer this morning confirmed it had completed what was described as a successful and significantly oversubscribed share placing.

READ: Petro Matad updates on exploration ahead of 2018 drill programme

"I am very pleased to announce the successful completion of this oversubscribed placing with new and existing institutional shareholders and I would like to thank them for their support,” said Mike Buck, Petro Matad chief executive.

“Petro Matad is now well capitalised to execute a six well exploration drilling programme during an active and exciting twelve month period.

Buck added: “This is the most significant exploration campaign in Mongolia for a number of years and I look forward to reporting on its progress once it kicks off in July 2018 with the spudding of the Snow Leopard-1 well."

A total of 136.8mln new shares were sold to investors at a price of 10p each to raise some £13.7mln of gross proceeds. The newly created equity represents some 26% of the company’s previously existing share capital.

Petro Matad shares were down 1.72p, 13.39%, changing hands at 11.13p.

Quick facts: Petro Matad Limited

Price: 3.5355 GBX

AIM:MATD
Market: AIM
Market Cap: £23.69 m
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