LONDON (Alliance News) - Matra Petroleum PLC Wednesday said it has completed phase two of its investment in the Texas Panhandle region of the US.
The oil and gas investing company said it has completed phase two of the three stage acquisition of certain oil and gas leaseholds in Texas through its 50% interest in PG-M international LLC a Texas-based joint venture vehicle.
Under the purchase agreement, Matra acquired the interest in PG-M for an initial USD1.5 million with further investments in the region to comprise the second and third phase of the deal.
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 comprising 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 has now established an office in Houston and the joint venture has managed to re-open 33 wells, 18 of which are currently producing and the first oil sale of 184 barrels has been completed.
Matra asked for its shares to be suspended in October as the company began making its investment in the Texas sites, the shares remain suspended at 1.02 pence.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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