Matra Petroleum PLC Reserve Update (6732Z)

TIDMMTA

RNS Number : 6732Z

Matra Petroleum PLC

10 February 2014

10 February 2014

Matra Petroleum plc

("Matra" or the "Company")

Reserve Update

Matra Petroleum plc, the oil and gas investing company focussed on the USA, is pleased to announce the results of an independent reserve audit conducted by DeGolyer and MacNaughton ("D&M").

As announced on 22 January 2014, Matra's wholly owned subsidiary, Matra Petroleum U.S.A., Inc. ("Matra USA") has completed its Phase II acquisition of interests in certain oil and gas leasehold interests in the Texas Panhandle region of the USA through its investment in PGM-JV, a joint venture vehicle incorporated in Texas of which Matra owns 50 per cent.

D&M conducted a review of all of the assets included in both the Phase I and Phase II acquisitions and the results of the independent reserve audit are set out below:

Aggregated Results for Leases Acquired during Phase I and II

 
                                    Gross Reserves                    Net Reserves* 
                           -------------------------------  -------------------------------- 
                                Oil and     Wet     TOTAL      Oil and      Wet      TOTAL 
                             Condensate     Gas               Condensate     Gas 
                                 (Mbbl)   (MMcf)    (MBOE)     (Mbbl)      (MMcf)    (MBOE) 
                           ------------  --------  -------  ------------  -------  --------- 
 
 Proved 
  Developed Producing                96     1,250      243            37      512         97 
  Developed Nonproducing          1,152    25,287    4,127           731   13,471      2,316 
  Undeveloped                     2,131    50,608    8,085         1,459   35,499      5,635 
                           ------------  --------  -------  ------------  -------  --------- 
 Total Proved                     3,379    77,145   12,455         2,227   49,482    8,048** 
  Probable                        2,379    55,350    8,891         1,478   29,954      5,002 
 Proved plus Probable             5,758   132,495   21,346         3,705   79,436   13,050** 
 

*Net Reserves are defined as that portion of gross reserves attributable to the interests owned by Matra, held through PGM-JV, after deducting royalties and interests owned by others.

**In the course of conducting extensive due diligence prior to closing of Phase II, the Company discovered certain title defects with respect to the properties being acquired. These defects are under active review by all relevant parties and are subject to ongoing title defect cure procedures, the results of which will be reported in due course.

The Company has extracted from the D&M report the Reserves associated with those leases that are currently free and clear from title defects and the results of this analysis are as set out below:

 
                                    Gross Reserves                   Net Reserves* 
                           -------------------------------  ------------------------------ 
                              Oil and     Wet Gas   TOTAL      Oil and      Wet     TOTAL 
                             Condensate                       Condensate     Gas 
                              (Mbbl)      (MMcf)    (MBOE)     (Mbbl)      (MMcf)   (MBOE) 
                           ------------  --------  -------  ------------  -------  ------- 
 
 Proved 
  Developed Producing                96     1,236      241            37      502       96 
  Developed Nonproducing            800    15,206    2,589           586   11,351    1,921 
  Undeveloped                     1,739    49,201    7,527         1,203   34,614    5,276 
                           ------------  --------  -------  ------------  -------  ------- 
 Total Proved                     2,635    65,643   10,358         1,826   46,466    7,293 
  Probable                        1,678    36,799    6,008         1,168   26,042    4,232 
 Proved plus Probable             4,313   102,442   16,365         2,994   72,508   11,524 
 

The potential economic value of the above Reserves will, in part, depend on the Company's chosen field development plan and operating strategy which has prepared and is currently being evaluated. The Company will be in a position to provide a detailed independent valuation of these Reserves in the Re-admission Document which is currently being prepared.

For further information, please contact:

Matra Petroleum plc c/o Bell Pottinger

   Henry Lerwill                           020 7861 3169 

Canaccord Genuity Limited

   Henry Fitzgerald-O'Connor      0207 523 8000 

Estimated of proved and probable reserves presented have been prepared in accordance with the Petroleum Management System (PRMS) approved in March 2007 by the Society of Petroleum Engineers, the World Petroleum Council, the American Association of Petroleum Geologists, and the Society of Petroleum Evaluation Engineers.

This statement has been approved by the Company's CTO Igor Indychko with over 21 years of experience in petroleum exploration and production for the purpose of the Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in respect of AIM companies, which outline standards of disclosure for mineral projects.

Glossary

 
 Reserves   Reserves are those quantities 
             of petroleum anticipated to 
             be commercially recoverable 
             by application of development 
             projects to known accumulations 
             from a given date forward under 
             defined conditions. Reserves 
             must further satisfy four criteria: 
             they must be discovered, recoverable, 
             commercial and remaining (as 
             of the evaluation date) based 
             on the development project(s) 
             applied. Reserves are further 
             categorised in accordance with 
             the level of certainty associated 
             with the estimates and may be 
             sub-classified based on project 
             maturity and/or characterized 
             by development and production 
             status. 
---------  --------------------------------------- 
 Mbbl       Thousand barrels of oil 
---------  --------------------------------------- 
 MMcf       Million cubic feet 
---------  --------------------------------------- 
 MBOE       Thousand barrels of oil equivalent 
---------  --------------------------------------- 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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