REG - Petro Matad Ltd - Results of Placing and Subscription

Petro MatadAnnouncement

11/07/2025 07:00

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RNS Number : 6454Q  Petro Matad Limited  11 July 2025

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR
INTO THE UNITED STATES, AUSTRALIA, NEW ZEALAND, CANADA, JAPAN, THE REPUBLIC OF
SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A
BREACH OF THE RELEVANT SECURITIES LAWS OF SUCH JURISDICTION.

This Announcement does not constitute a prospectus or offering memorandum or
an offer in respect of any securities and is not intended to provide the basis
for any investment decision in respect of Petro Matad Limited or other
evaluation of any securities of Petro Matad Limited or any other entity and
should not be considered as a recommendation that any investor should
subscribe for or purchase any such securities.

This Announcement contains inside information for the purposes of the UK
version of the market abuse regulation (EU No. 596/2014) as it forms part of
United Kingdom domestic law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR").  In addition, market soundings (as defined in UK MAR) were
taken in respect of certain of the matters contained in this Announcement,
with the result that certain persons became aware of such inside information,
as permitted by UK MAR.  Upon the publication of this Announcement, this
inside information is now considered to be in the public domain and such
persons shall therefore cease to be in possession of inside information.

For immediate release

 

11 July 2025

Petro Matad Limited

("Petro Matad" or the "Company")

Results of Placing and Subscription

 

Petro Matad Limited ("Petro Matad" or the "Company") (AIM: MATD), the AIM
quoted Mongolian oil company, is pleased to announce that following the
accelerated bookbuild which was announced at 4:35 p.m. on 10 July 2025 (the
"Launch Announcement"), the Company has conditionally raised gross proceeds of
GBP 2.84 million (c.US$4 million) through the Placing of 323,250,000 new
Ordinary Shares, and Subscriptions for 32,169,117 new Ordinary Shares by each
of a director and shareholder of the Company at a price of 0.80 pence (the
"Placing Price") per share.

 

Shore Capital Stockbrokers ("Shore Capital") and Zeus Capital ("Zeus") acted
as Joint Bookrunners.

 

Capitalised terms used in this announcement (this "Announcement") have the
meanings given to them in the Launch Announcement, unless the context provides
otherwise.

 

Highlights

 

·    The Company has conditionally raised, in aggregate, GBP 2.84 million
(c.US$4 million) at a price of 0.80 pence per new Ordinary Share.

·    Petrovis Matad Inc. (a Substantial Shareholder as defined under the
AIM Rules) is participating in the Subscription for a total of 27,573,529
Subscription Shares with a total value of US$300,000.

·    Mike Buck, CEO of Petro Matad, is participating in the Subscription
for a total of 4,595,588 Subscription Shares with a total value of US$50,000.

·    Conditionally, in aggregate, a total of 355,419,117 Placing Shares
and Subscription Shares will therefore be issued, representing approximately
19.32 per cent. of the enlarged share capital of the Company.

 

Funding allocation strategy

The proceeds of this capital raise will be allocated, as follows:

·    Heron-1:

o  Reducing operating expenditure at the producing Heron-1 well through a
low-cost switch from diesel fired power to grid electricity.

·    Heron-2:

o  Low cost testing operations at Heron-2 well which was proven oil bearing
in 2024.

·    Gazelle-1

o  Low cost testing operations at Gazelle-1 which has good log indications of
potentially productive oil pay.

o  Positive results from Gazelle-1 will also provide information to determine
an appraisal strategy for the structure.

·    Gobi Bear-1

o  Perform a test of Gobi Bear-1 where in 2024 logs identified a zone of
interest in which geochemical studies on well cuttings indicated that migrated
oil may be present.

o  In the event of success at Gobi Bear-1, this could add significant oil
resources in Block XX.

 

The planned well testing constitutes a low cost, potentially high impact
programme to be conducted over the next 6 months in parallel with ongoing
efforts to introduce partners to the Block XX assets to accelerate their
development, production ramp up and revenue and so increase shareholder value.
With success in the testing operations, these wells can quickly be brought on
stream through the existing production facilities at Heron-1 and can add to
the Company's production revenue in the short term.

The balance of the capital raise, including any funds raised from the Retail
Offer, will be allocated towards:

 

·    SunSteppe Renewable Energy

o  Petro Matad's SunSteppe Renewable Energy joint venture has secured
exclusivity on two sizeable projects of 200MW and 1.5GW respectively and land
lease and wind resource data gathering are scheduled to start.

o  In its role as local developer on these large projects, SunSteppe is
looking to reach ready-to-build status in order to secure development premia
when investors join the construction phase of the projects.

o Benchmarking past projects in Mongolia indicates that these large projects
could attract multi-million dollar development premia from investors once they
reach ready-to build status. Some of the proceeds from the capital raise will
be directed at these two projects and on other projects that are currently
under review by the SunSteppe team.

 

·    Block VII

o  Conduct geochemical evaluation and field work on this large area into
which basins productive for oil to the south in northern China are believed to
extend.

o  The Company is also seeking partners to join it in exploring this exciting
acreage.

 

Retail Offer

Within the Launch Announcement it was noted that, as part of the Capital
Raising, the Company was launching a separate retail offer of up to 62.50
million new Ordinary Shares at the Placing Price on the BookBuild Platform to
raise up to a further £0.5m (c.US$0.7m) to provide existing retail
shareholders in the United Kingdom with an opportunity to participate in the
Capital Raising. A separate announcement will be made on the result of the
Retail Offer, expected to be released on 16 July 2025.

 

Admission

Application will be made for the admission of 355,419,117 Placing Shares and
Subscription Shares to trading on the AIM market of London Stock Exchange plc
("Admission"). It is ‎expected that such Admission will take place at or
around 8.00 a.m. (London time) on 18 July 2025.

Following Admission, the Group's share capital and total voting rights will
comprise 1,839,302,718 ordinary shares of US$0.01 each and the Group does not
hold any shares in treasury. Consequently, 1,839,302,718 is the figure which
may be used by shareholders as the denominator for the calculation by which
they will determine if they are required to notify their interest in, or a
change to their interest in, the Company under the FCA's Disclosure and
Transparency Rules.

 

Related Party Transaction

 

As a substantial shareholder, Petrovis Matad Inc.'s participation in the
Subscription is deemed to be a related party transaction for the purposes of
AIM Rule 13. The independent director of Petro Matad (being for this purpose
Tim Bushell), having consulted with the Company's nominated adviser, Shore
Capital, considers that the terms of Petrovis Matad Inc.'s participation in
the Subscription are fair and reasonable insofar as Shareholders are
concerned.

 

As a director, Mike Buck's intended participation in the Subscription is
deemed to be a related party transaction for the purposes of AIM Rule 13. The
independent Director of Petro Matad (being for this purpose Tim Bushell),
having consulted with the Company's nominated adviser, Shore Capital,
considers that the terms of his participation in the Subscription are fair and
reasonable insofar as Shareholders are concerned.

 

 

Enquiries:

 Petro Matad Limited                                                       +44 162 462 7099

 Mike Buck, Chief Executive Officer

 Shore Capital Stockbrokers Limited (NOMAD, Broker, Joint Bookrunner)      +44 207 408 4050

 Toby Gibbs / Harry Davies-Ball
 Zeus Capital Limited (Joint Bookrunner)                                   +44 207 614 5900

 Simon Johnson / Louisa Waddell

 FTI Consulting (Financial PR)        +44 203 727 1000

 Ben Brewerton / Christopher Laing    petromatad@fticonsulting.com (mailto:petromatad@fticonsulting.com)

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 100% working interest and the operatorship of two Production
Sharing Contracts with the Government of Mongolia. Block XX has an area of 214
square kilometres in the far eastern part of the country and Block V has an
area of 7,937 square kilometres in the central western 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.

Market Abuse Regulation

This Announcement is released by Petro Matad Limited and contains inside
information for the purposes of UK MAR and is disclosed in accordance with the
Company's obligations under UK MAR. The person who arranged for the release of
this Announcement on behalf of Petro Matad Limited was Mike Buck, Chief
Executive Officer.

Important Notices

Shore Capital is a member of the London Stock Exchange and is authorised and
regulated in the United Kingdom by the Financial Conduct Authority (the "FCA")
and Zeus is regulated in the United Kingdom by the FCA. Each of Shore Capital
and Zeus is acting exclusively for the Company and no one else in connection
with the Placing, and Shore Capital and Zeus will each not be responsible to
anyone (including any Placees) other than the Company for providing the
protections afforded to its clients or for providing advice in relation to the
Placing or any other matters referred to in this Announcement.

The notification below, made in accordance with the requirements of UK MAR,
provides further details of above transactions.

 

 1    Details of the person discharging managerial responsibilities / person closely

    associated

 a)   Name                                                         Mike Buck

 2    Reason for the notification

 a)   Position/status                                              CEO

 b)   Initial notification /Amendment                              Initial notification

 3    Details of the issuer, emission allowance market participant, auction

    platform, auctioneer or auction monitor

 a)   Name                                                         Petro Matad Limited

 b)   LEI                                                          213800FXLBLLEVK4R858

 4    Details of the transaction(s): section to be repeated for (i) each type of

    instrument; (ii) each type of transaction; (iii) each date; and (iv) each
      place where transactions have been conducted

 a)   Description of the financial instrument, type of instrument  Ordinary shares in the Company

      Identification code

                                                                   IM00B292WR19
 b)   Nature of the transaction                                    Purchase of shares

 c)   Price(s) and volume(s)                                       Purchase of shares:

Price  Volume(s)

                                                                   0.80p  4,595,588

 

 d)   Aggregated information

      - Aggregated volume                                          N/A

      - Price

      - Total Value

 e)   Date of the transaction                                      11 July 2025

 f)   Place of the transaction                                     LSE, AIM Market (AIMX)

 

 

d)

 

Aggregated information

 

- Aggregated volume

 

- Price

 

- Total Value

 

 

 

N/A

e)

 

Date of the transaction

 

 

11 July 2025

f)

 

Place of the transaction

 

 

LSE, AIM Market (AIMX)

 

 

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