Update re payment from Shell

RNS Number : 7621T

Petro Matad Limited

10 January 2017

 

10 January 2017

Petro Matad Limited

("Petro Matad" or the "Company")

Shell Payment of $5 Million following Mongolia Government Approval of

Reassignment of Interest in Blocks IV and V

Further to the Company's announcement of 15 December 2016, Petro Matad advises that the $5 million to be paid by Shell following the approval by the Mongolian government of the reassignment of Interest in Blocks IV and V, has not been received yet.  The Company had expected that following receipt of government approval, the previously prepared Protocols of Reassignment (tripartite agreement between Petroleum Authority of Mongolia, Shell, Petro Matad) would be rapidly signed, after which payment would be processed by Shell. However, subsequent to the receipt of Mongolian Government approval, the Petroleum Authority of Mongolia proposed a change in wording of the Protocols of Reassignment. While this is purely a technical matter it has caused a delay in receipt of the payment from Shell. The revised wording has been essentially agreed by all parties and the Company expects signing of the revised protocols will occur within the next few days. Payment by Shell is therefore expected to be received within two weeks.

On a separate matter, the Company remains on track to issue the drilling tender by end January. Furthermore the farmout process continues and a physical dataroom has been opened in London and is being attended by a significant number of potential farmin companies.

Further updates will be made in due course.

Enquiries:

Petro Matad Limited

Ridvan Karpuz, CEO                                        [phone] / [phone]

NOMAD and Broker

Stockdale Securities Limited

Richard Johnson / David Coaten               [phone]

 

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