LONDON (Alliance News) - Matra Petroleum PLC said Thursday it is preparing a formal request to JSC joint stock commercial bank Jugra in Megion City in Russia for the USD10 million that remains due for the Arkhangelovskoe Licence.
Jugra is the guarantor for the undisclosed party that acquired the license.
Matra said it had reached the deadline by which the acquirer of the licence either had either to provide Matra with a negative drilling report or make the additional payment.
Matra sold the licence on July 1, 2013 for USD25 million. A further consideration of USD10 million was payable within nine months, conditional on the drilling results. Following the disposal the company became an investing company.
It expects to make the application shortly.
The company proposed the cancellation of its shares trading on AIM Monday to complete a reverse takeover of PG-M International LLC.
Following the deal AIM rules require the company's substantial shareholders to agree not to dispose of any interest in their securities for a period of one year from re-admission.
The company said that on Friday its two major shareholders, Winpro Ventures Corp and Tricon Energy Finance Ltd were unwilling to be constrained by the rules, and consequently the company was unable to complete the reverse takeover.
However, Matra Petroleum said it has secured an extension to its option to acquire the 50% interest in PG-M until May 2, which should give it time to effect the cancellation of its trading on AIM, following which it can proceed to complete the acquisition as a private company.
The company said that it believes the cancellation is in the best interests of shareholders and will allow the company to continue to implement its strategy of acquiring oil and gas interest.
A general meeting has now been planned for April 23 for the purpose of considering a special resolution to approve the cancellation of admission of the company's ordinary shares to trading on AIM.
Shares in Matra remain suspended from trading.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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