Petro Matad, the parent company of a group concentrating on oil exploration, as well as future development and production, in Mongolia, has raised $5m before expenses.

 This has been done through the issue of 90,612,540 ordinary shares of $0.01 each to its largest shareholder, Petrovis Matad.

The new shares have been issued to Petrovis at an issue price of 3.56p per ordinary share.

 The net proceeds of the funding, along with the company”s existing cash reserves of approximately $2.1m, will enable Petro Matad to undertake field operations during the current 2013 field season.

 As previously notified to the market, the company is in the process of conducting a farm-out. The company has had a number of international companies visit the farm-out data room.

 It is now closed and Petro Matad is continuing discussions with interested parties. It is anticipated that the company will be in a position to make a further statement on the progress with this transaction during the third quarter.