Matra Petroleum AB: Matra Petroleum agrees to acquire producing oil and gas reserves and secure financing for 2018 drilling program

Matra Petroleum AB ("Matra") and entities controlled by Melody Capital Partners, LP ("Melody") have signed a non-binding term sheet under which Matra will acquire 22 oil and gas leases in the Texas Panhandle region, adding proved reserves of approx. 4.0 million barrels of oil equivalent. Current oil and gas production amounts to approximately 100 barrels of oil equivalent per day. The transaction amounts to MUSD 6.2 through assumption of debt and a directed share issue to Melody. Melody will also provide up to MUSD 10 in additional funding for Matra's drilling and development program in 2018.

The producing oil and gas assets to be acquired from Melody are located in the Panhandle region in Texas and Matra Petroleum USA, Inc. is currently operating the assets under an operating agreement with Melody. To pay for the acquisition Matra will assume existing debt of MUSD 4 and direct a share issue to Melody for MUSD 2.2.

The current loan agreement between Matra Petroleum USA, Inc. and Melody will be amended to increase the existing loan commitment by up to MUSD 10 upon consummation of the agreed transactions. The proceeds will be used for drilling and development of Matra's existing assets and the leases to be acquired from Melody.

"We are extending our cooperation with Melody who is becoming a significant shareholder in Matra. Through the transaction we are adding proven reserves, development potential and additional cash flow from existing production from assets that we know well. Further, we are securing the funding to extend our successful drilling and development program in the Texas Panhandle." says Maxim Barskiy, CEO of Matra Petroleum AB.

The agreement is subject to binding agreements containing usual and customary terms for transactions and credit facilities of this nature and to obtaining relevant approvals and amendments under existing credit agreements. Binding agreements and execution of the transactions are expected in March and April 2018, upon which terms and conditions for the directed share issue will be determined.

For further information please contact:
Maxim Barskiy, CEO, Matra Petroleum AB
Tel.: +46 8 611 49 95

This information is information that Matra Petroleum AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on 14 March, 2018, at 10:15 CET.

About Matra Petroleum
Matra Petroleum AB (publ) is a Swedish independent oil and gas exploration and production company operating in the United States, where the company owns and operates 130 leases, covering an area of 38,140 net acres in the Panhandle region in Texas. Matra's reserves amount to 21.0 million barrels of oil equivalent. Matra Petroleum 's shares are traded on NASDAQ First North in Sweden under the symbol MATRA. Mangold Fondkommission AB is Certified Adviser (www.mangold.se,
Tel: +46 (0) 8 50 30 1550). Web: www.matrapetroleum.com

About Melody Capital Partners
Melody Capital Partners is a private investment firm with a unique strategy of creating financing solutions in partnership with borrowers. Melody has over $1.5 billion in capital and focuses on senior secured loan origination and direct lending in North America. For more information on Melody Capital Partners, please visit www.melody.com.