Petro Matad Ltd - Isle of Man-based, Mongolia-focused parent company of a group focussed on oil exploration, which owns and operates two production sharing contracts with the Mongolian government - Raises $6.0 million from placing and subscription of 195.1 million shares at a price of 2.5 pence each. Says shareholder Petrovis Matad Inc buys 32.5 million subscription shares for total $1.0 million. Petro Matad Chief Executive Officer Mike Buck buys 813,008 subscription shares for $25,000.

Also on Thursday announced a separate retail offer of up to 20 million new shares at above placing price for a further £500,000, or $615,000, providing existing retail shareholders in the United Kingdom with an opportunity to participate in the capital raising. Says it expects to announce a result of this retail offer on Wednesday next week.

Buck said on Thursday: ‘This capital raise will allow Petro Matad to move ahead on three fronts in addition to the development of the Heron discovery where we are already fully funded to production start-up which is targeted for this year. The proceeds will enable us to test the low-cost, high impact Velociraptor exploration prospect where success would be transformational for both the company and Mongolia. We have identified a cost-effective drilling solution for Velociraptor with equipment already in country and the necessary contractual approvals in place.’

Current stock price: 2.9p, down 29%

12-month change: down 32%

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