Matra Petroleum raises £0.85m through placing

Matra Petroleum, an oil and gas exploration and production company, has raised £0.85m through the placing of 170m new ordinary shares.

The funds generated will be used to initiate production from well A-13 at its wholly owned Sokolovskoe oil field and as well as for working capital.

Following admission of the shares onto AIM, expected to occur on 16 November, the company will have 1,284,917,872 shares in issue.

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Matra's managing director, Peter Hind said: "The funds raised will allow Matra to commence initial production in early 2012 from the Sokolovskoe Field that has 15.1 million barrels of 2C recoverable contingent resources and finalise plans to progress its further development."

The share price fell, losing 8.33% to 0.55p by 08:29.

NR