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Matra Petroleum makes move for US oil projects

Matra Petroleum makes move for US oil projects

Former Russian oil junior Matra Petroleum (LON:MTA) has announced it will make a move for conventional onshore assets in the United States.

The AIM firm has set up a number of acquisitions in the US that will result in the firm securing up to 50 leases, spanning 38,746 acres, across the Texas Panhandle.

These leases are believed to contain 10.5mln barrels of oil equivalent recoverable oil reserves, and already host 221 wells and there is potential for further 379 wells to be drilled.

It will cost US$48.2mln for Matra to complete the series of transactions.

The agreement is structured in such a way that the transactions will take place via a joint venture and will be phased over the coming months. Initially it has paid US$1.5mln and the deals will complete by the end of the second quarter of next year.

Matra recently received fresh financial backing, hired new management and disposed of its Russian assets. This is the first transaction of the ‘new’ business.

The US conventional onshore oil and gas market represents a compelling investment opportunity, according to Matra, which highlights the ease of access to low risk production at attractive valuations.

Chief executive Maxim Barskiy said: "Over the last year and a half we have invested a great deal of time and effort in reviewing different projects and believe this opportunity will become the first step in the realization of our strategy of building a mid-sized independent E&P Company.

“The quality, size and potential of the Texas asset offers considerable upfront and future value for shareholders.

“The acreage acquired provides significant potential production and resources upside for shareholders, in an excellent fiscal and commercial environment."

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