Petro Matad Limited (AIM:MATD, OTC:PRTDF), the AIM-quoted oil company operating in Mongolia, has raised $4 million through a placing and subscription of new shares, and has announced plans for a retail offer that could bring in a further $700,000.
Funds will be used to cut operating costs at the Heron-1 producing well by switching from diesel to grid electricity.
The company will also undertake low-cost testing at the Heron-2 and Gazelle-1 wells, both of which have shown signs of oil, and will test the Gobi Bear-1 site, where earlier analysis suggested oil may be present.
The shares dropped 26%, reflecting potential dilution and the discount applied to the newly minted stock offered in the latest investment round.