News Column

Petro Matad Loss Narrows But Search For Farm-Out Partners Goes On

June 30, 2014

Tom McIvor



LONDON (Alliance News) - Petro Matad Ltd Monday said its pretax loss narrowed in 2013, as expenses fell at the company, but it continues to struggle in its search for development partners for its operations in Mongolia.


The oil exploration company, with operations in central Mongolia, said its pretax loss narrowed to USD7.5 million from USD12.2 million the previous year.


The company, which is yet to produce any revenue, said the reduction in losses resulted from reductions in its employee benefits expenses and in exploration expenditure.


Petro Matad opened up a range of major fundraising and farm-out initiatives during 2013 in order to develop its exploration assets in Mongolia, but found that investors were unsure about its assets in the country and so not enough funding was raised to develop the sites significantly.


The company said its search for a partner has been frustrating as many have concerns over the investment climate and geology of Mongolia. It carried out a range of new tests on its assets towards the end of 2013 and into 2014 to help improve its prospective opportunities.


Petro Matad said the process has rekindled interest in possible partners at the site but no agreements have yet been reached and finalising a farmout agreement could yet take some time.


Petro Matad shares were down 9.6% to 2.60 pence, putting it among the top AIM All-Share fallers on Monday.







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Source: Alliance News