LONDON (Alliance News) - Matra Petroleum PLC Monday announced the results of an independent reserve audit conducted by DeGolyer and MacNaughton.
The US focused oil and gas investment company said the study tested the company's leasehold interests, including those in the Texas Panhandle region of the US, following the completion of its phase II acquisition of interests in the area through the company's 50% owned joint venture vehicle in Texas.
The company said that the total proved plus probable gross reserves at the sites now equal 21.35 billion barrels of oil equivalent while the total net to Matra is 13.05 billion barrels of oil equivalent.
Matra said the total proved amount gross is 12.46 billion barrels, with 8.05 billion barrels net to Matra, and the total probable amount gross is 8.89 billion barrels with 5.00 billion barrels net to Matra.
Under the phase two investment, Rifle Energy LLC and Vindex Holdings LLC agreed to transfer to PG-M certain oil and gas leases comprising 5,759 net acres across the Texas Panhandle for a total payment of up to USD9.2 million. The total comprised up to USD3.85 million in cash, and funding of up to USD5.35 million pursuant to a promissory note, completing the second phase.
The company noted that some of these sites are subject to certain title defects, the results of which will be reported in due course.
Matra said that without those sites with title defects, its total proved and probable gross reserves are 16.37 billion barrels of oil equivalent and 11.52 billion net to Matra.
The company noted that the full potential of the sites are dependant on the company's chosen field development plan and operating strategy, which is currently being evaluated.
Matra Petroleum shares were untraded at 1.02 pence Monday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
Copyright © 2014 Alliance News Limited. All Rights Reserved.