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Matra Petroleum to dump Russian licence for US$35mln

Matra Petroleum to dump Russian licence for US$35mln

Matra Petroleum (LON:MTA) has signed a deal to sell its 100% stake in the Arkhangelovskoe licence in Russia, which includes the Sokolovskoe field, for up to US$35mln.

The unnamed buyer will have to stump up US$25mln upfront with a further US$10mln to be paid within nine months depending on drilling results.

Matra said the sale represents “compelling value”, especially considering the costs required to develop the asset and the technical risks associated with the field.

The operational history of the Sokolovskoe field is littered with setbacks. The A12 well has experienced high water cuts and mechanical failures over the past few years, dragging down annual production to just 11,925 barrels in 2012.

Chief Executive Maxim Barskiy said: “We believe this sale crystallises significant value for shareholders, demonstrating our ability to monetise assets at an appropriate stage and mitigate downside risk.

“The proceeds provide financial flexibility, helping to fund future acquisitions which fits our strategy of building a significant mid-cap oil and gas company.”

Shares opened 26% higher at 1.07p each.

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