News

Matra needs funding to drill well

12 November 2008 11:26:00

Oil explorer Matra Petroleum said it needs to raise sufficient finance to cover the costs of drilling another well.

The group said the continuing uncertainty of financial markets has limited funding choices and terms have deteriorated.

"We are conducting discussions with a number of parties covering a range of debt and equity funding, and farm-out/sale of an interest. Although we have received offers for funding, the Company is not yet in a position to conclude an appropriate arrangement in the best interests of shareholders," it said.

It has drilled well 12 of the Sokolovskoe field in the Arkhangelovskoe License, while plans to drill a second well are underway.

Valuation of the Sokolovskoe Field has fallen from $172m to $88m since the fall in world oil prices.

The group also said it has settled a court dispute it was having with a Russian firm over its Arkhangelovskoe exploration license.

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