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Matra Petroleum raising £1.2 mln in placing and share subscription

Matra Petroleum raising £1.2 mln in placing and share subscription

Matra Petroleum (LON:MTA) is raising £850,000 in a share placing and is expecting its biggest shareholder, Israel’s Delek Group, to subscribe for shares worth another £350,000 next week.

The company plans to use the funds raised in the placing for working capital and to initiate production from Well A-13 in Russia’s Sokolovskoe Field.

Through Fox-Davies Capital, Matra is placing 170 million new shares at 0.5 pence each for a total of £850,000.  Fox-Davies is also replacing Matrix Corporate Capital as broker to the company.

In addition, Matra is expecting Delek Energy Systems Ltd to subscribe for a further new 70 million new shares at 0.5 pence per share next week to raise £350,000. According to the company’s share register, as at August 11 2011, Delek Group held 326.52 million Matra shares, or 29.29 percent of the capital.

Matra managing director Peter Hind said: "The funds raised will allow Matra to commence initial production in early 2012 from the Sokolovskoe Field that has 15.1 million barrels of 2C (Russian classification) recoverable contingent resources and finalise plans to progress its further development."

The group announced last month that Well-12 was undergoing a further workover.

Hind had told investors in October: "Progress has been made on resolving the issues around Well-12 and this has allowed us to recommence operations with the workover rig. Separately, we continue to move forward with our plans to drill Well-14 and commission a 3D seismic survey. We are currently considering a number of financing options."

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