Matra Petroleum has disposed of its 100% interest in the Arkhangelovskoe Licence which includes the Sokolovskoe Field, the company reported in a news release.
Following completion of the disposal and the approval of the Investing Policy by Shareholders at the Company’s General Meeting held on 28 June 2013, the Company is now considered an Investing Company.
Accordingly, the company will be required to make an acquisition or acquisitions which constitute a reverse takeover under the AIM Rules or otherwise implement its Investing Policy within 12 months, failing which, the Company’s Ordinary Shares will be suspended from trading on AIM. If the Company’s Investing Policy has not been implemented within 18 months the admission to trading on AIM of the Company’s Ordinary Shares will be cancelled and the Directors will convene a general meeting of the Shareholders to consider whether to continue seeking investment opportunities or wind up the Company and distribute any surplus cash back to Shareholders.
Completion of the Disposal is a significant milestone for Matra. The initial payment of US$25 million, which has been received today, means that the company will have considerably more resources and financial flexibility to pursue attractive value enhancing opportunities than it has previously enjoyed.
The company reported it intent to use the proceeds of the Disposal to acquire alternative oil and gas assets with material production potential and exploration upside. The initial focus will remain on Russia and CIS but the company may consider projects elsewhere should attractive opportunities arise.
Source: Matra Petroleum plc, 2013.