Petro Matad announced that it has entered into a share purchase and convertible securities deed with the New York asset management Bergen Asset Management, LLC, in connection with a staged private placement of up to 43.3 million USD in new ordinary shares in Petro Matad and a convertible instrument with a nominal value of two million USD.
“The funds will be used to further advance the company’s previously announced two-well exploration program by drilling additional basin opener wildcat wells to test the prospect of independent basins and to prove the existence of potentially commercial hydrocarbon accumulations; and by acquiring additional 3D seismic to de-risk prospects, or in case of discovery, to acquire appraisal 3D seismic data,” the company stated.
The firm program for 2017 includes the drilling of two exploration wells, the first of which will be in Block V, followed by a well in Block IV.
“We are delighted to have reached agreement with Bergen Global Opportunity Fund to provide between 20 million USD and 45 million USD of funding for Petro Matad. This funding secures our firm work program for 2017 and 2018 comprising four exploration wells and up to 300 km2 of 3D seismic acquisition. The Bergen facility is extremely flexible and allows us to effectively manage our cash resources over the next 18 months during a very active operational period for the company,” CEO of Petro Matad Rivdan Karpuz said.
“We will continue to pursue other investment options that could allow us to either expand our work program in the event of encouragement with the drilling program, or alternately reduce the funding required from the Bergen facility. In particular, we are in active dialogue with a number of interested parties who are evaluating the farm-out and remain hopeful of concluding an agreement with a farminee prior to the commencement of the first well,” Karpuz added.