Matrix Oil secures US$24.5 million to develop Langsa TAC

Australian oil and gas exploration company Matrix Oil NL yesterday announced the final two steps financing that will see it emerge as a significant Australian oil producer in 2001 with agreement reached for a US$24.5 million financing package to enable the leasing of the production facilities needed for its Langsa offshore Technical Assistance Contract (TAC) area in the North Sumatran Basin.

The company has reached agreements for a finance package of $US20 million from a syndicate headed by the Swiss-based oil trader, Vitol Group, who have also been given exclusive rights to the oil offtake. CIBC World Markets was also the lead underwriter for part of a placement of 36,992,272 shares at A$0.22 cents each to Australian and international institutions and investors to raise AUD$8,138,300.00, and complete the US$24.5 million package needed to move into production.

The company has also reached agreement with two major Japanese corporations, MODEC (a subsidiary of Mitsui) and ITOCHU, for the US$47 million three-year contract for a floating production, storage and offloading (FPSO) system and subsea operating systems.

Matrix said its Langsa TAC oil fields (H and L fields)had the of proven and probable reserve of 33.5 million boe and proven reserve of 13 million boe.

Matrix Oil holds 90 percent working interest in Langsa TAC through the purchase of Canadian oil company GFB resources in January 2000. (alex)