Petro Matad's Stock Rises on Expectation of $5 Million Payment from Shell
18 January 2017 - 11:27PM
Dow Jones News
By Philip Waller
LONDON--Shares in Petro Matad Ltd. (MATD.LN) rose as much as 22%
on Wednesday after the oil producer said it is set to receive a $5
million compensation payment from Royal Dutch Shell PLC (RDSB.LN)
for the latter's withdrawal from two production-sharing contracts
in Mongolia.
Petro Matad said all parties have now signed so-called protocols
of reassignment of Shell's stake in the deals and payment from
Shell is expected in the next 10 days.
Shell issued a notice to Petro Matad exercising its exit option
from the contracts, which cover blocks IV and V in west/central
Mongolia, last April.
The Mongolian government approved the protocols of reassignment
in December, but payment by Shell was delayed due to a technical
issue.
Petro Matad is running a farm-out process for the blocks and has
set a February deadline for bids.
At 1130 GMT, shares in Petro Matad were up 4.6 pence, or 19%, at
28.75 pence.
-Write to Philip Waller at philip.waller@wsj.com
(END) Dow Jones Newswires
January 18, 2017 07:12 ET (12:12 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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