Petro Matad Regulatory News (MATD)

Petro Matad Limited

('Petro Matad' or the 'Company')

Interim results for the six months ended 30 June 2017

LONDON, 01 September 2017: Petro Matad Limited, the AIM quoted Mongolian oil explorer, is pleased to announce its unaudited interim results for the six months ended 30 June 2017.

Financial Summary

The Group posted a loss of USD 2.518 million for the six-month period ended 30 June 2017, which compares to a profit of USD 0.1 million for the comparable period in 2016. The Company's cash balance at 30 June 2017 was $10.92 million, which compares to a cash balance of $0.49 million on 30 June 2016.

As reported in the announcement of 8 May 2017, the Company entered into a financing agreement with Bergen Global Opportunity Fund, LP (Bergen), which agreement was amended and announced post period end on 15 August 2017. Under the provisions of the agreement the Company has obtained two tranches of $1.2 million each and has issued a Convertible Note to Bergen for a further $1.5 million. Further tranches have been postponed until 15 October 2017, during which period the Company will continue to review its financing requirements.

Operations

On 5 July 2017, the Company announced its 2017 exploration drilling programme and initial drilling targets in Blocks IV and V, following the signing of a drilling rig contract with Sinopec International Petroleum Service Mongolia. Preparations for the commencement of drilling operations continue and the Company expects to issue a full operational announcement by mid-September 2017, which will include a full update on drilling rig preparations and expected spud date.

For more information, please contact:

Petro Matad Limited

Ridvan Karpuz, CEO +97 670 141 099 / +97 675 751 099

NOMAD and Broker

Stockdale Securities Limited

Richard Johnson / David Coaten +44 (0)20 7601 6100

Business Advisory Firm

FTI Consulting

Edward Westropp +44 (0)20 3727 1521

About Petro Matad

Petro Matad is the parent company of a group focussed on oil exploration, as well as future development and production in Mongolia. At the current time, Petro Matad holds the sole operatorship of three Production Sharing Contracts with the Government of Mongolia. Block XX has an area of 10,343 km² in the far eastern part of the country, and Blocks IV and V have an area of 28,999 km2 and 21,150 km2, respectively, in the southwest part of the country.

Petro Matad Limited is incorporated in the Isle of Man under company number 1483V. Its registered office is at Victory House, Prospect Hill, Douglas, Isle of Man, IM1 1EQ.

STATEMENT OF COMPREHENSIVE INCOME

FOR THE HALF-YEAR ENDED 30 JUNE 2017

STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2017

CONDENSED CASH FLOW STATEMENT

FOR THE HALF-YEAR ENDED 30 JUNE 2017

STATEMENT OF CHANGES IN EQUITY

FOR THE HALF-YEAR ENDED 30 JUNE 2017

1. CORPORATE INFORMATION

The financial report covers the consolidated entity of Petro Matad Limited and its controlled entities.

Petro Matad Limited, a company incorporated in the Isle of Man on 30 August 2007 has four wholly owned subsidiaries, including Capcorp Mongolia LLC and Petro Matad LLC (both incorporated in Mongolia), Central Asian Petroleum Corporation Limited ("Capcorp") and Petromatad Invest Limited (both incorporated in the Cayman Islands). Its majority shareholder is Petrovis Matad Inc. Its majority shareholder is Petrovis Matad Inc.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The half-year financial report does not include all of the notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report.

The half-year financial report should be read in conjunction with the annual Financial Report of Petro Matad Limited as at 31 December 2016. The half-year consolidated financial statements have been prepared using the same accounting policies as used in the annual financial statements for the year ended 31 December 2016.

It is also recommended that the half-year financial report is considered together with any public announcements made by Petro Matad Limited and its controlled entities during the half-year ended 30 June 2017.

(a) Basis of Preparation

The half-year consolidated financial report is a general purpose financial report, which has been prepared in accordance with the requirements of International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ('IASB'). The half-year financial report has been prepared on a historical cost basis, except where stated.

The financial report is presented in US dollars and all values are rounded to the nearest thousand dollars ($'000).

For the purpose of preparing the half-year financial report, the half-year has been treated as a discrete reporting period.

(b) Basis of consolidation

The consolidated financial statements comprise the financial statements of the Group as at 31 December each year.

Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable or convertible are taken into account. The financial statements of the subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.

The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. Adjustments are made to bring into line any dissimilar accounting policies that may exist.

A change in the ownership interest of a subsidiary that does not result in a loss of control is accounted for as an equity transaction.

All intercompany balances and transactions, including unrealised profits arising from intra-group transactions, have been eliminated in full. Unrealised losses are eliminated unless costs cannot be recovered.

3. CONTRIBUTED EQUITY

(i) Ordinary shares

Full paid ordinary shares carry one vote per share and carry the right to dividends.

* On 11 May 2017, the Company issued 5,651,951 commencement and collateral shares to Bergen as part of the initial closing under the Private Placement arrangement.

**On 13 June 2017, the Company issued 9,507,963 new ordinary shares to Bergen in relation to the first tranche payment.

4. RESERVES

A detailed breakdown of the reserves of the Group is as follows:

5. EARNINGS/(LOSS) PER SHARE

The following reflects the income and share data used in the total operations basic and diluted earnings/(loss) per share computations:

Share Options and Conditional Share Awards could potentially dilute basic loss per share in the future, however they have been excluded from the calculation of diluted loss per share because they are anti-dilutive for both years presented.

6. EVENTS AFTER THE REPORTING DATE

On 18 July 2017, the Company issued 13,389,719 new ordinary shares to Bergen in relation to the second tranche payment.

On 15 August 2017, the Company amended its financing agreement with Bergen Global Opportunity Fund, LP (Bergen), to enable the issuance of a Convertible Note to Bergen for $1.5 million. The amendment also postponed future tranches under the Bergen agreement until 15 October 2017.

On 16 August 2017, the Company received $1,500,000 from Bergen for the issue of a convertible note.