Matra Petroleum AB: First quarter report 2017

Quarter ended 31 March 2017

• Revenue of TUSD 2,664, up 170% from Q1 2016
• Cash Flow from Operations improved to TUSD 626, compared with TUSD -1,030 in Q1, 2016
• EBITDA of TUSD 419 compared with -546 inQ1 2016
• Result before tax of TUSD -1,303 compared with TUSD -2,290 in Q1 2016
• Net result for the period of TUSD -1,303, compared with -2,290 in Q1 2016
• Earnings per share amounted to -0.04 USD per share compared with - 0.07 USD per share in Q1 2016
• TUSD 5,701 (before issue costs) raised through new share issues of which TUSD 277 were received in April 2017 
• Oil and gas gross production amounted to 654 boepd, up 30% from Q1 2016
• 3 oil and gas production wells drilled in the first quarter
• Accelerated drilling program in the second quarter

Subsequent events

• Matra Petroleum AB (publ) listed on NASDAQ First North, Stockholm on April 20, 2017

Dear Shareholders,

I am pleased to present Matra Petroleum AB (publ) first quarterly report as a listed company.

In the first quarter 2017, Matra recorded significant improvements in financial and operating performance compared to the first quarter 2016, driven mainly by higher production and improved oil and gas prices.

During the quarter Matra drilled and completed three new wells that were successfully tested and recently put on production. New wells produce at significantly higher rates than the current average and the plan is to replace low performing wells with production from new drilling.

The company has adapted to recent years' challenging operating conditions by increasing efficiency in operations and investments, eliminating uneconomic production and securing financing to maintain an active drilling program. The Company's debt portfolio has been restructured to secure long term debt financing for coming years and additional equity was raised to strengthen the balance sheet and fund capital expenditures.

Matra's asset portfolio has been thoroughly evaluated and selected wells have been drilled in order to gain valuable insight into the field and optimize future drilling plans. In this process, we identified 466 drilling opportunities Reserves are conventional and wells are shallow and quick to drill, presenting attractive returns at today's oil prices. In addition, approximately 200 idle wells can be brought back to production. 

An active drilling program has been launched, aimed at raising production from the current asset base up to 6,000 boepd in coming years and bringing long term improvements in financial performance.   

With the recent listing on Nasdaq First North and improved access to capital markets Matra is well positioned to grow organically and through selective acquisitions.

23 May 2017

Maxim Barskiy
Chief Executive Officer

For more information, please contact:
Maxim Barskiy, CEO, Matra Petroleum AB (publ)
Phone number: +46 8 611 49 95
E-mail: IR@matrapetroleum.com

Investor Relations
Email: IR@matrapetroleum.com
Website: www.matrapetroleum.com

Mangold Fondkommission AB is the Company's Certified Adviser.
Telephone: +46 (0) 85 03 01 550
E-mail: info@mangold.se

Matra Petroleum AB (publ) | Eriksbergsgatan 10 | Box 7292 | 115 22 Stockholm
Telephone: +46 (0)8-611 4995 | web: www.matrapetroleum.com | Email: ir@matrapetroleum.com

This information is information that Matra Petroleum AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information was submitted for publication, through the agency of the contact person set out above, at 7:45 CET on 23 May 2017.

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 136 leases, covering an area of 38,800 net acres in the Panhandle region in Texas. Matra Petroleum 's shares are traded on NASDAQ First North in Sweden under the symbol MATRA.