LONDON (Alliance News) - Matra Petroleum PLC, the oil and gas investing company, Thursday said its US subsidiary has bought a 50% interest in a joint venture that gives it its first investment in the US oil and gas sector, and has an agreement to potentially increase its stake.
The US unit will first acquire half of a joint venture vehicle called PG-M International LLC from PSOFEI LLC for USD1.5 million. Under the deal, it could then make further investments in the venture in two further stages, giving it control of more of the venture's assets.
In the first stage, Matra will get control of 480 net acres across the Anadarko Basin located in the Texas Panhandle, land that already has 35 wells and 20 expected new well locations. Matra estimates remaining recoverable reserves is 417 million barrels of oil.
If it proceeds with a second, up to USD5.4 million, investment, it would get a further 5,759 net acres with 186 existing wells and 89 expected new well locations. The estimated remaining recoverable reserves for these lands is 3.4 billion barrels of oil.
A third investment, of up to USD12.5 million, would give it 32,507 net acres with 270 potential new well locations and estimated remaining recoverable reserves of 6.8 billion barrels of oil.
Since the second and third investments would constitute a reverse takeover under listing rules, Matra asked for its shares to be suspended while it finalises the deals.
"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," Matra Chief Executive Maxim Barskiy said in a statement.
The investments will be made with a mixture of cash, funding notes, loans, and working interests in the sites.
Matra Petroleum shares were trading at 1.02 pence when they were suspended.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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