REG - Petro Matad Ltd - Final Results - Replacement <Origin Href="QuoteRef">MATD.L</Origin> - Part 3

Petro MatadAnnouncement

16/07/2015 13:03

- Part 3: For the preceding part double click  ID:nRSc4213Rb 

                     
 Financial Liabilities                                                                                
 Trade and other payables       -                                            718      -        718    
 Total                          -                                            718      -        718    
 
 
The fair values of the financial assets and financial liabilities included in
the level 2 category above have been determined in accordance with generally
accepted pricing models based on a discounted cash flow analysis, with the
most significant inputs being the discount rate that reflects the credit risk
of counterparties. 
 
   
   
 
 
20.  Capital management 
 
The Group's objectives when managing capital are to safeguard the Group's
ability to continue as a going concern in order to provide returns for
shareholders and benefits for other stakeholders and to maintain an optimal
capital structure to reduce the cost of capital. The management of the Group
and the Group's capital is regularly reviewed by the Board.  The capital
structure of the Group consists of cash and bank balances (Note 7) and equity
of the Group (comprising issued capital, reserves and retained earnings as
detailed in Notes 13 and 14).  This is reviewed by the Board of Directors as
part of their regular Directors meetings. 
 
The Group monitors its capital requirements based on the funding required for
its exploration activities in Mongolia and operations of the company. 
 
The Group is not subject to externally imposed capital requirements. 
 
21.  Events after the reporting date 
 
On 7 April 2015 the Company announced the successful completion of a farmout
agreement with BG International Limited and BG Mongolia Holdings Limited ("BG
Group"). Under the terms of the farmout the BG Group will acquire 78% of
Blocks IV and V in exchange for agreeing to fund Petro Matad's share of a
mutually agreed US$28 million work programme which will fulfil the minimum
work obligations for both Blocks within the current licence period to July
2017. To accelerate the exploration evaluation process the majority of the
work will be undertaken in 2015 and 2016. Petro Matad will also receive
additional cash consideration of US$4.55 million to fund ongoing operations
and obligations. 
 
On 23 April 2015, pursuant to the Group's Plan, 5,750,946 shares were awarded
upon exercise of Conditional Share Awards with an exercise price per share of
$0.01. Of the 5,750,946 Conditional Share Awards shares issued, 5,229,255 of
the Conditional Share Awards shares relate to the Conditional Share Awards
programme. The other 521,691 Conditional Share Awards shares are pursuant to
the Group's Plan. 
 
On 22 June 2015 all conditions to the farmout were satisfied and unconditional
status was therefore received. On the same date $2,750,000 cash consideration
was received from BG Group. The remaining cash consideration of $1.8 million
under the terms of the farmout agreement will be received over the next thirty
months - $300,000 of which will be received shortly, with the balance being
received in increments of $50,000 per month. 
 
Timetable and distribution of accounts 
 
The Company's statutory annual report and accounts will be dispatched
electronically to shareholders today and will be posted shortly to
shareholders who have elected to receive hard copies of the Annual Report.
Additional copies of the Annual Report and Accounts may be requested directly
from the Company and an electronic copy is available on the Company's website
www.petromatad.com. 
 
Annual General Meeting ("AGM") 
 
A notice of the Company's AGM to be at Petrovis Building, Amar Street 8,
Sukhbaatar District, Ulaanbaatar, Mongolia will be distributed in due course. 
 
This information is provided by RNS
The company news service from the London Stock Exchange