Matrix completes A $7m equity placement, exploration continues

Australian listed oil, gas explorer Matrix Oil NL on Monday announced it had raised A $7 million via a placement of approximately 28 million fully paid ordinary shares to local institutional and exempt investors.

Matrix's managing director Brian Hockney said the funds raised would enable the company to complete its drilling program of the Asahan Offshore production sharing contract (PSC) acreage offshore North Sumatra.

Phil Davies, Matrix's technical director said that the current and proposed drilling programs in Asahan PSC were proceeding well and on target.

Davies further said that drilling operations are continuing at West Kambuna 1 exploration well and had reached 8,299 ft depth on Monday, November 19, 2001.

He said a testing program was being designed to test the significance of the hydrocarbon shows that Matrix encountered in the well.

According to Davies, potential reserves in Asahan prospect had been independently estimated as being 2 to 3 trillion cubic feet of gas plus 150 to 200 million barrels of liquids.

The West Kambuna Prospect straddles the boundary between Matrix's 75 percent owned Asahan Offshore PSC area and its 90 percent owned adjacent Glagah Kambuna technical assistance contract (TAC) area. Matrix is operator of both contract areas. (alex)