Petro Matad, the AIM quoted Mongolian oil company, today announced that following the accelerated bookbuild which was announced on 14 July 2021, the Company has conditionally raised gross proceeds of US$ 9.7 million through the oversubscribed placing of, and subscriptions by a director and shareholder of the Company for, 200,624,830 new Ordinary Shares at a price of 3.5p per share.

The Company also announces that, following the further announcement made yesterday regarding the launch of a proposed retail offering via PrimaryBid, it has successfully conditionally placed 14,285,714 new Ordinary Shares at the Placing Price, raising gross proceeds of approximately US$0.7 million.

Shore Capital Stockbrokers and Arden Partners acted as Joint Bookrunners.

Highlights

• The Company has conditionally raised, in aggregate, approximately US$10.4 million at a price of 3.5 pence per new Ordinary Share.
• Petrovis Matad Inc. (a Substantial Shareholder as defined under the AIM Rules) is participating in the Subscription for a total of 43,321,299 New Ordinary Shares with a total value of approximately US$2.1 million.
• Mike Buck, CEO of Petro Matad, is participating in the Subscription for a total of 2,062,919 New Ordinary Shares with a total value of approximately US$100,000.
• Conditionally, in aggregate, a total of 214,910,544 New Ordinary Shares will therefore be issued, representing approximately 24 per cent. of the Enlarged Share Capital.

Admission

Application will be made for the admission of the Placing Shares and the Retail Shares to trading on the AIM market of London Stock Exchange. It is ‎expected that such Admission will take place at or around 8.00 a.m. (London time) on 22 July 2021.

Open Offer

As announced yesterday, Petro Matad also intends to raise up to approximately US$ 2 million through the issue of up to 42,588,894 new Ordinary Shares pursuant to an open offer, to allow Qualifying Shareholders, including those who are not participating in the Placing or the Retail Offer, to subscribe for new Ordinary Shares at the Placing Price. This is on the basis of 1 Open Offer Share for every 16 Existing Ordinary Shares held by the Qualifying Shareholder at the Record Date of 14 July 2021. Completion of the Open Offer remains subject, inter alia, to the passing of the Resolutions at the Extraordinary General Meeting.

Mike Buck, CEO of Petro Matad, commented:
"The Board is delighted by the support we have received from new and existing shareholders, and is pleased to welcome a number of new blue chip institutions to the register.

This fundraise will allow us to commence production from the Heron Field, with the completion of the Heron 1 well and the drilling of the H2 and H3 wells."

KeyFacts Energy: Petro Matad Mongolia country profile