Petro Matad gains approval for farm-out agreement

On June 11, Petro Matad Ltd. confirmed that it had obtained Mongolian government approval for the farm-out of blocks IV and V in central Mongolia to BG Group. The company also says that the final condition to the farm-out of becoming unconditional has been waived by BG Group. The farm-out has therefore achieved unconditional status.

Cash consideration of $2,750,000 has been received June 22 from BG Group and the transfer of 78% working interest in blocks IV and V to BG Group has now been completed. An additional $1.8 million cash consideration is to be received over the next 30 months – $300,000 of which will be received shortly, with the balance being received in increments of $50,000 per month.

 

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