quarter and twelve months ended 31 December quarter ended 31 December ( quarter ended 31 December ) Revenue of TUSD 2,295 (TUSD 1,974), up 16% EBITDA of TUSD 433 (TUSD 232), up 87% Result for the period of TUSD -2,110 (TUSD -1,238) Earnings per share amounted to USD -0.05 per share (USD 0.04 per share) Gross average oil and gas production amounted to 644 boepd (605 boepd) up 6% Net result affected by non cash hedge revaluation of TUSD -453 (TUSD -574) Twelve months ended 31 December (Twelve months ended 31 December ) Revenue of TUSD 9,234 (TUSD 5,682), up 63% EBITDA of TUSD 1,400 (TUSD -745) Result for the period of TUSD -7,126 (TUSD -9,038) Earnings per share amounted to USD -0.18 per share (USD -0.27 per share) Matra Petroleum AB (publ) listed on NASDAQ First North, Stockholm on April 20, TUSD 5,701 (before issue costs) raised through new share issues Gross average oil and gas production increased by 19 percent to 671 boepd (564 boepd) 10 oil and gas production wells and 1 salt water disposal well were drilled Net result affected by non cash hedge revaluation of TUSD -664 (TUSD -2,005) quarter quarter Twelve months Twelve months Operational results Gross crude oil production, bbl 30,363 30,109 127,080 101,977 Gross gas and natural liquids production, mcf 173,536 153,370 707,543 626,710 Total, boepd 644 605 671 564 Net crude oil production, bbl 24,325 24,466 103,714 82,614 Net gas and natural liquids production, mcf 125,896 109,044 523,251 452,135 Total, boepd 492 463 523 432 Average selling price oil, USD/bbl 51.86 46.40 47.53 41.10 Average selling price gas USD/mcf 8.14 5.38 6.78 4.46 Financial results Revenue, TUSD 2,295 1,974 9,234 5,682 EBITDA, TUSD 433 232 1,400-745 Operating result, TUSD -392-82 -560-3,730 Result for the period, TUSD -2,110-1,238-7,126-9,038 Earnings per share, USD -0.05-0.04-0.18-0.27 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 130 leases, covering an area of 38,140 net acres in the Panhandle region in Texas. Matra s proved oil and gas reserves amount to 21.0 million barrels of oil equivalent. Matra Petroleum's shares are traded on NASDAQ First North in Sweden under the symbol MATRA. Mangold Fondkommission AB is Certified Adviser (www.mangold.se).
Dear Shareholders, We can now summarize Matra Petroleum AB s first financial year following the listing on Nasdaq First North in Stockholm last spring. In, Matra made meaningful progress and recorded significant growth and financial improvements: - Oil and gas production increased by 19% - Revenue increased by 63% - EBITDA turned positive and net income improved - Long term debt was restructured - 5.7 MUSD in new equity was raised In, performance was driven by successful drilling, production optimization and continuous cost and efficiency improvements. Revenues, EBITDA and cash flow were also supported by improved oil and gas prices. Increased capital expenditures, resulting from higher drilling activity were primarily funded by equity issues early in the year and working capital sources, resulting in a net cash decrease. 10 new production wells and 1 salt water disposal well were successfully drilled and completed and are outperforming expectations as drilling and completion techniques keep improving. The results from the new wells have been incorporated into Matra s updated development plan and independent reserve report to reflect higher expected financial returns from new wells to be drilled going forward. Matra has identified more than 400 locations for drilling new wells to add production towards the long term production target of 6,000 boe per day. In the fourth quarter, oil and gas production increased compared to same quarter last year but was lower than in the preceding quarter, primarily due to unusually low temperatures in northern Texas in December that affected flow lines and compressors. Higher realized oil and gas prices contributed to revenues increasing by 16% compared to the fourth quarter last year while remaining at the same level as revenues in the third quarter. Quarterly EBITDA further improved from the third quarter and the fourth quarter. Net income for the quarter was negatively affected by an unrealised loss of TUSD 453 on hedge positions, based on higher yearend oil and gas prices not yet reflected in oil and gas sales. Hedge positions were related to future production for which actual price realizations will be recorded in 2018. Higher oil and gas prices support revenue, cash flow and earnings going into 2018. Matra s asset base offers significant development opportunities and we remain committed further optimize drilling and production. Our objective is to execute an extensive workover program and launch this years drilling program in the second quarter to provide for further growth and financial improvements. 21 February 2018 Maxim Barskiy Chief Executive Officer 2
Production and development Matra Petroleum AB (publ) ( Matra Petroleum, Matra or the Company ) owns and operates 130 oil and gas leases, covering an area of 38,140 net acres in the Panhandle region in Texas, USA. Matra s proven (1P) oil and gas reserves as of 30 November amounted to 21.0 million barrels of oil equivalent. Crude oil and gas production, sales volumes and achieved selling prices are presented in the tables below: quarter quarter Oil, bbl Gas, Mcf Total oil Total oil Oil, bbl Gas, Mcf equivalent equivalent Produced volume, gross 30,363 173,536 59,286 30,109 153,370 55,671 Average daily production, gross 330 1,886 644 327 1,667 605 Produced volume, net 24,325 125,896 45,308 24,466 109,044 42,640 Average daily production, net 264 1,368 492 266 1,185 463 Sold volume 24,853 125,896 45,836 23,604 109,044 41,778 Net price (USD/Unit) 51.86 8.14 50.48 46.40 5.38 40.27 Revenue from sales of oil and gas (TUSD) 1,289 1,025 2,314 1,095 587 1,682 Twelve months Twelve months Oil, bbl Gas, Mcf Total oil Total oil Oil, bbl Gas, Mcf equivalent equivalent Produced volume, gross 127,080 707,543 245,004 101,977 626,710 206,429 Average daily production, gross 348 1,938 671 279 1,712 564 Produced volume, net 103,714 523,251 190,923 82,614 452,135 157,970 Average daily production, net 284 1,434 523 226 1,235 432 Sold volume 104,286 523,251 191,495 81,417 452,135 156,773 Net price (USD/Unit) 47.53 6.78 44.41 41.10 4.46 34.19 Revenue from sales of oil and gas (TUSD) 4,957 3,548 8,505 3,346 2,015 5,361 The net production in the twelve months amounted to 190,923 barrels of oil equivalent ( boe ), corresponding to 523 barrels of oil equivalent per day (boepd). 54 percent of the production was oil and 46 percent was gas. The net production increased by 21 percent compared to the twelve months. The production increase resulted from drilling and completing new wells in and workovers on existing wells. Oil and gas reserves Matra Petroleum s net oil and gas reserves as per 30 November were estimated at 21 million barrels of oil equivalent ( MBOE ) with a net present value (PV10) of 151 MUSD calculated based on oil prices of USD 50.73 per barrel and gas prices of USD 3.04 per MMBtu respectively. Category Net reserves PV (10%) (TUSD) Oil, MBO Gas, MMCF MBOE Proved developed producing 1,281 6,581 2,378 25,818 Proved developed non-producing 2,171 17,639 5,110 41,527 Proved undeveloped 7,817 33,953 13,476 83,664 Total proved 11,269 58,173 20,964 151,009 3
The estimate of reserves has been conducted by independent petroleum consultants DeGolyer and MacNaughton and were prepared in accordance with the United States Securities and Exchange Commission (SEC) regulations. Future prices were estimated using guidelines established by the SEC and FASB based on the 12 month average NYMEX oil price and gas price. Revenue Total revenue in the year ended 31 December amounted to TUSD 9,234, representing a 63 percent increase compared with the twelve months (TUSD 5,682) (figures in brackets refer to the corresponding period last year, unless otherwise stated). Total revenue included revenue from sales of oil of TUSD 4,957, gas TUSD 3,548 and other income TUSD 729. The increase in revenue was primarily due to higher production and higher realized crude oil and gas prices. The average received selling prices for oil increased by 16 percent and for gas by 52 percent during the period and amounted to USD 47.53 per bbl for oil and USD 6.78 per mcf for gas (USD 41.10 per bbl and USD 4.46 per mcf). The increase in average selling prices resulted from improved market conditions and increased deliveries of higher quality gas. Matra sells its oil to the Valero refinery located in the Northwest Moore County in the Panhandle area. The gas is tied into the DCP Midstream L.P. gas pipeline network, and the Energy Transfer Partners pipeline system, both local Texas systems. Costs Production costs for the year amounted to TUSD 5,070 representing an increase of 27 percent compared with the year ended 31 December (TUSD 3,986). This increase in production costs was mainly attributable to higher production and field activity. Production costs include inventory movements, production taxes, electricity, crude oil heat treatment (during the winter period), compressor lease/maintenance, field operating team compensation, maintenance/work-over costs and other costs. General and administrative expenses amounted to TUSD 3,319 for the year ended 31 December, which was lower than TUSD 3,910 for the year ended 31 December. General and administrative expenses includes non-recurring costs for the listing on NASDAQ First North amounted to TUSD 167. Other gain/(loss) Other gain/(loss) amounted to TUSD -109 (TUSD -536) and represents the loss from revaluation of derivative contracts held by the company during the year and gain and loss realized on settlement of derivative contracts accordingly. Operating result and EBITDA The operating result for the year ended 31 December amounted to TUSD -560, compared to TUSD -3,730 for the year ended 31 December. EBITDA for the year ended 31 December amounted to TUSD 1,400 (TUSD -745). The improvement in Operating result and EBITDA was explained by increased revenues resulting from higher production and prices. Net financial items The net financial items are comprised of finance costs and change in fair value of warrants. Finance costs amounted to TUSD 6,566 in the year ended 31 December compared to TUSD 5,493 for the year ended 31 December. The difference was a result of increases in debt and interest rates and movements in foreign currency exchange rates. The interest on mezzanine loan is due at maturity. There was no charge due to change in fair value of warrants in the period ended 31 December compared to TUSD 185 for the year ended 31 December as the warrants were cancelled in February. Tax There was no tax charge for the reporting period ended 31 December (nil). 4
Result For the year ended 31 December Matra reports a net result after tax of TUSD -7,126 corresponding to an earnings per share of USD -0.18 (net result after tax of TUSD -9,038 and -0.27 USD per share). Investment and work program Total investments in the year ended 31 December amounted to TUSD 5,172 compared to TUSD 4,461 for the year ended 31 December. In the year ended 31 December, Matra drilled 10 new production wells and 1 salt water disposal well. All 10 new wells drilled in were completed and put on production. Financing and Liquidity In October, Matra Petroleum AB (publ) was formed as the new group parent company, to consolidate 100 percent of Matra Petroleum USA Inc. The consolidation was completed in February through a series of transactions. In connection with this, Matra renegotiated and extended its long term debt agreements, raised additional equity capital and widened its Swedish shareholder base. The Company raised a total of TUSD 5,701 through several equity placements, a private placement directed to qualified investors, and a public offering. As of 31 December Matra s total liquidity amounted to TUSD 604 (December 31, : TUSD 1,532). Cash flow from operations including changes in working capital for the reporting period amounted to TUSD -341 (TUSD -1,446). Parent company The parent company s net result before tax from the incorporation on October 26, until 31 December amounted to TSEK -6,666 (TUSD -790). The parent company s net result before tax includes included non-recurring costs for the listing on NASDAQ First North amounting to TUSD 167. The parent company became the parent company of the group during the year ended 31 December. As of 31 December, the liquidity of the parent company amounted to TSEK 990 corresponding to TUSD 121. Share data The formation of Matra Petroleum AB (publ) included a number of share issues in, including: New share issue of 450,000 shares to make the Matra Petroleum AB (publ) a public limited liability company. A share split 1:1,000 In-kind share issue of 10,950,513,775 shares to acquire 100 percent of Matra Petroleum ltd at a valuation of SEK 78,649,950.60 corresponding to a subscription price per share of SEK 0.0072 prior to the reverse split (SEK 7.20 after reverse share split). In-kind share issue 22,020,218,798 shares to acquire approximately 67 percent of Matra Petroleum USA Inc. at a valuation of SEK 158,155,969.40 corresponding to a subscription price per share of SEK 0.0071 prior to the reverse split (SEK 7.10 after reverse share split). A reverse share split 1,000:1 New share issue of 1,359,485 shares directed to Forsinvest Aktiebolag, in the amount of SEK 1,373,079.85 corresponding to a subscription price per share of SEK 1.01 after the reverse split, in order for Forsinvest Aktiebolag to retain agreed ownership of the Company through a Scheme of Arrangement in connection with the acquisition of Matra Petroleum Ltd and Matra Petroleum USA Inc. New share issue of 4,595,000 shares directed to qualified investors, in the amount SEK 45,950,000 corresponding to a subscription price per share of SEK 10 New share issue to the public in the amount of SEK 2,500,000 of 250,000 shares corresponding to a subscription price per share of SEK 10 As per reporting date, the number of outstanding shares in Matra Petroleum AB (publ) amounted to 39,675,217 (basic) and 41,534,702 (diluted). On April 20,, the trading of shares in Matra Petroleum commenced on Nasdaq First North. 5
Risk and uncertainties A statement of risks and uncertainties are presented in Note 2. Transactions with related parties In the fourth quarter, Matra borrowed TUSD 100 from Almaxo Investments Ltd. The loan was repaid in full in the first quarter. Warrants to management On 8 February, it was resolved to issue a maximum of 1,859,485 warrants in order to replace previous ownership assurances to management in Matra USA which were issued on 28 February. Each warrant entitles the holder to subscribe for one (1) new share in the Company at a subscription price of SEK 1.01 per share (nominal value) during the period between 31 August and 31 January 2022. If the warrants are fully exercised it will lead to a dilution of about 4.5 percent of the share capital and votes in the Company. Dividend The directors propose that no dividend be paid for the year. 6
CONSOLIDATED INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME Note quarter, quarter, Revenue: 3 2,295 1,974 9,234 5,682 Cost of sales: Production costs 4-1,200-1,089-5,070-3,986 Depletion and accretion -372 260-1,296-980 Gross profit/loss 723 1,145 2,868 716 General and administrative -645-971 -3,319-3,910 Other gain/(loss) Net gain/(loss) on derivative contracts -470-256 -109-536 Operating profit/loss -392-82 -560-3,730 Net financial items Finance costs 5-1,718-1,593-6,566-5,493 Change in fair value of warrants - 437-185 -1,718-1,157-6,566-5,308 Profit/loss before tax -2,110-1,238-7,126-9,038 Result for the period -2,110-1,238-7,126-9,038 Attributable to: Shareholders of the Parent Company -2,110-1,238-7,126-9,038 Non-controlling interest - - - - -2,110-1,238-7,126-9,038 Other comprehensive result Currency translation gains/losses -5-159 - -5-159 - Total comprehensive loss -2,115-1,238-6,967-9,038 Attributable to: Shareholders of the Parent Company -2,115-1,238-6,967-9,038 Non-controlling interest - - - - -2,115-1,238-6,967-9,038 Basic earnings per share, $ -0.05-0.04-0.18-0.27 Weighted number of shares 39,675,217 32,970,733 38,908,131 32,970,733 Diluted earnings per share, $ -0.05-0.04-0.18-0.27 Weighted number of shares 41,534,702 32,970,733 40,207,223 32,970,733 7
CONSOLIDATED BALANCE SHEET ASSETS Non-current assets Oil and gas properties 80,957 76,882 Other tangible fixed assets 275 391 Other non-current assets 6 250 250 Total non-current assets 81,482 77,523 Current assets Inventories 170 163 Trade and other receivables 7 1,296 1,113 Derivative instruments 10-466 Cash and cash equivalents 604 1,532 Total current assets 2,070 3,274 TOTAL ASSETS 83,552 80,797 EQUITY AND LIABILITIES Equity Shareholders' equity 21,650 23,980 Non-controlling interest 1,795 1,795 Total equity 23,445 25,775 Liabilities Non-current liabilities Financial liabilities 8 52,625 47,015 Decommissioning provision 11 1,011 930 Derivative instruments 10-89 Total non-current liabilities 53,636 48,034 Current Liabilities: Financial liabilities 8 953 136 Trade and other payables 9 2,080 2,306 Accrued liabilities 3,056 2,988 Derivative instruments 10 382 - Fair value of warrants - 1,559 Total current liabilities 6,471 6,989 Total liabilities 60,108 55,022 TOTAL EQUITY AND LIABILITIES 83,552 80,797 8
CONSOLIDATED STATEMENTS OF CASH FLOWS quarter quarter Full year Full year Cash flows from operating activities: Net result -2,110-1,238-7,126-9,038 Adjustments for: Depletion, depreciation and amortization 372-260 1,297 980 Finance cost 1,718 1,594 6,480 5,493 Unrealised loss on derivative contracts 453 574 664 2,005 Loss on returned leased car -37 - -37 - Unrealised loss on warrants - -437 - -185 Interest paid -312-311 -1,250-1,253 Changes in working capital -226-269 -369 552 Total cash flows from operating activities -142-347 -341-1,446 Cash flows from investing activities: Investment in oil and gas properties - -1,361-5,172-4,461 Investment in other fixed assets - -2 - -2 Total cash flows from investing activities -1,363-5,172-4,463 Cash flows from financing activities: Proceeds from issue of issue of shares - - 5,701 - Issue costs - - -1,065 - Cash paid for finance costs - - -210 - Net Cash Provided By Financing Activities - - 4,426 - Change in cash and cash equivalents -142-1,710-1,087-5,909 Cash and cash equivalents at the beginning of the period 751 3,242 1,532 7,441 Currency exchange difference in cash and cash equivalents -5 159 - Cash and cash equivalents at the end of the period 604 1,532 604 1,532 9
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Share capital Additional paid in capital Foreign currency translati on reserve Retained deficit Total equity attributable to parent company shareholders Noncontrolling interest Total equity Total equity as at 1 January - 71,931 - -38,913 33,018 1,795 34,813 Result for the period - - - -9,038-9,038 - -9,038 Total comprehensive income for the period - - - -9,038-9,038 - -9,038 Total equity as at 31 December - 71,931 - -47,951 23,981 1,795 25,775 Share capital Additional paid in capital Foreign currency translati on reserve Retained deficit Total equity attributable to parent company shareholders Noncontrolling interest Total equity Total equity as at 1 January - 71,931 - -47,951 23,981 1,795 25,775 Result for the period - - - -7,126-7,126 - -7,126 Translation differences - - 159-159 - 159 Total comprehensive income for the period - - 159-7,126-6,967 - -6,967 Acquisition of Matra Petroleum USA, Inc. 3,665-3,665 - - - - - Not registered share issue - - - - - - - New shares issue (cash) 757 4,945 - - 5,701-5,701 Issue cost - -1,065 - - -1,065 - -1,065 Total equity as at 31 December 4,421 72,146 159-55,077 21,650 1,795 23,445 10
PARENT COMPANY INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOME Expressed in TSEK From 26 Oct to 31 December 15 months 1 Oct - 31 Dec 3 months Revenue 185 185 General and administrative expenses Legal and professional services (2,315) (426) Corporate cost (1,633) (465) Office cost (734) (269) Due diligence cost (689) - Personnel cost (457) (151) Travel (282) (67) Exchange losses (727) 5 Total general and administrative expenses (6,837) (1,373) Operating loss (6,652) (1,188) Finance costs (14) - Net result (6,666) (1,188) 11
PARENT COMPANY BALANCE SHEET Expressed in TSEK 31 Dec ASSETS Non-current assets Shares in subsidiaries 270,520 Total non-current assets 270,520 Current assets Trade and other receivables 101 Receivables from group 484 Cash and cash equivalents 990 Total current assets 1,575 TOTAL ASSETS 272,095 EQUITY AND LIABILITIES Share capital 39,675 Retained earnings 231,409 Total equity 271,084 Current liabilities Trade and other payables 932 Liabilities to group companies 80 Accrued liabilities - Total current liabilities 1,011 Total liabilities 272,095 TOTAL EQUITY AND LIABILITIES 272,095 12
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the fourth quarter and the year ended 31 December and 31 December (Tabular amounts are in US Dollars, unless otherwise stated). Note 1 - Corporate information and basis of preparation This interim report has been prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting, and the Swedish Annual Accounts Act (SFS 1995:1554). Matra Petroleum AB (publ) ( Matra AB or The Company ) was formed in October as the parent company of the group. Matra AB consolidated 100 percent of Matra Petroleum USA, Inc. ( Matra USA ), making it a fully owned subsidiary in February. Through several transactions, Matra USA was acquired from its previous shareholders Rovelo Investment Ltd and Matra Petroleum Ltd ( Matra Ltd ). In exchange, Matra AB issued shares to Rovelo Investment Ltd and Matra Ltd s former shareholders. The transaction did not meet a definition of a business combination in accordance with IFRS 3, Business Combinations, as it was a transaction under common control, consequently these financial statements are issued under the legal parent, Matra AB, but are deemed to be a continuation of the legal subsidiaries Matra USA and Matra ltd, which have been under common control, and hence comparative information have been included. The capital structure reflects the number of shares and the stated capital of Matra AB. These consolidated financial statements (the Financial statements ) reflect the activity for the fourth quarter and the year ended 31 December and the comparative for the year ended 31 December. The financial report of the Parent Company has been prepared in accordance with accounting principles generally accepted in Sweden, applying RFR 2 Reporting for legal entities, issued by the Swedish Financial Reporting Board and the Annual Accounts Act (SFS 1995:1554) and reflect the activity of the Company for 12 months ended 31 December. Under Swedish company regulations it is not allowed to report the Parent Company results in any other currency than Swedish Krona or Euro and consequently the Parent Company s financial information is reported in Swedish Krona and not the Group s reporting currency of US Dollar. Note 2 Risks and uncertainties Matra Petroleum AB (publ) s activities expose it to a number of risks and uncertainties which are continuously monitored and reviewed. The main risks and uncertainties are operational, financial and oil and gas price risks described below. A detailed analysis of Matra Petroleum s risks and uncertainties is described in the Company Description published in connection to the listing on NASDAQ First North, available on Matra Petroleum s web. Operational risk Matra s estimated proved reserves are based on many assumptions that may turn out to be inaccurate and any significant inaccuracies in these reserve estimates or underlying assumptions could materially affect the actual quantities and present value of such reserves. Matra s long-term commercial success depends on its ability to appraise, develop, explore and commercially produce oil and gas reserves. Matra must continually locate and develop or acquire new reserves to replace its existing reserves that are being depleted by production. Future increases in Matra s reserves will depend not only on its ability to appraise, develop and explore its existing assets but also on its ability to select and acquire suitable additional assets through acquisitions. Financial risks There is a risk that Matra will not be able, or only at a significantly higher cost, to obtain access to financing in order to meet its contractual obligations. If the Company fails to raise the necessary capital it could have a material adverse effect on the Company s business, financial condition and results of operations. 13
Oil and gas price risks Both oil and gas prices can be volatile and are subject to fluctuation. Any material decline in oil prices could result in a reduction of Matra s net production revenue. Historically, oil prices have fluctuated widely for many reasons. It is impossible to accurately predict future oil and gas price movements. Accordingly, oil and gas prices may not remain at their current levels. The economics of producing from some of Matra s wells may change as a result of lower prices, which could result in a reduction in the volumes of Matra s reserves if some are no longer economically viable to develop. Note 3 Revenue quarter quarter Oil 1,289 1,095 4,957 3,346 Natural gas 1,025 587 3,548 2,015 Other income -19 292 729 321 Note 4 - Production costs quarter 2,295 1,974 9,234 5,682 quarter Oil and gas production costs 1,086 1,080 4,670 3,778 Production taxes 114 66 408 243 Change in inventory position - -57-8 -35 1,200 1,089 5,070 3,986 Note 5 - Finance costs quarter quarter Interest expense 1,399 1,255 5,141 4,131 Foreign currency exchange loss 2-86 - Unwinding of decommissioning provision discount 8 21 79 85 Amortisation of deferred financing fees 120 130 510 526 Amortisation of debt instrument discount 51 51 200 200 Amortisation of warrant discount 138 136 550 550 1,718 1,593 6,566 5,493 Note 6 - Other non-current assets Deposit to Rail Road Commission 250 250 250 250 14
Note 7 - Trade and other receivables Trade receivables 1,160 760 Joint operations debtors - 185 Prepayments 136 168 1,296 1,113 Note 8 - Financial liabilities Non-current: Bank loan 24,069 25,000 Mezzanine loan 29,260 23,609 Capitalised warrants obligations -550-1,101 Capitalised financing fees -277-669 Finance lease 124 176 Current: 52,625 47,015 Bank loan 840 - Finance lease 113 136 Note 9 - Trade and other payables At 31 December 953 136 At 31 December Trade payables 1,631 2,112 Joint operations creditors 436 194 Other creditors 13-2,080 2,306 15
Note 10 - Financial instruments For financial instruments measured at fair value in the balance sheet, the following fair value measurement hierarchy is used: Level 1: based on quoted prices in active markets; Level 2: based on inputs other than quoted prices as within level 1, that are either directly or indirectly observable; Level 3: based on inputs which are not based on observable market data. Based on this hierarchy, financial instruments measured at fair value can be detailed as follows: 31 December Level 1 Level 2 Level 3 Assets Derivative instruments - non-current - - - Derivative instruments - current - - - - - - Liabilities Derivative instruments - non-current - - - Derivative instruments - current - 382 - - 382-31 December Level 1 Level 2 Level 3 Assets Derivative instruments - non-current - - - Derivative instruments - current - 466 - Liabilities - 466 - Derivative instruments - non-current - 89 - Derivative instruments - current - - - - 89 - There were no transfers between the levels during the reporting period. The fair value of the financial assets and financial liabilities is estimated to equal the carrying value. The fair value, of the Derivative instruments, is calculated using the crude oil and natural gas futures curve for the crude oil and natural gas price hedging contracts. The hedge counterparties are all banks which are party to the loan facility agreement. 16
Note 11 Decommissioning provision Opening balance 930 843 Additions 2 2 Changes in estimates - Unwinding of discount 79 85 Closing balance 1,011 930 Non-current 1,011 930 Current - - Total 1,011 930 Note 12 Events after balance sheet date There were no significant events after the balance sheet date. RECONCILIATION BETWEEN IFRS AND USED KEY INDICATORS (ALTERNATIVE PERFORMANCE MEASURES) Some of the information in this report used by company managers and analysts to assess the Group s development is not produced in accordance with IFRS. Company managers consider that this information makes it easier for investors to analyse the Group s results and financial structure. Investors should see this information as a complement to, rather than a replacement for, financial reporting in accordance with IFRS. Earnings before depreciation and exclusive of derivatives, EBITDA quarter quarter Operating profit/loss -392-82 -560-3,730 Depreciation and amortisation 372-260 1,296 980 Unrealised gain/(loss) on derivative contracts 453 574 664 2,005 Earnings before depreciation and amortisation exclusive of derivatives (EBITDA) 433 232 1,400-745 When calculating EBITDA depreciation, impairments and unrealised gain/(loss) on derivative contracts are excluded from operating profit/loss. This measurement provide a better understanding of what operating earnings are without the impact of non-cash depreciation and the effect non-cash derivative revaluations. In previous quarters in, EBITDA was calculated as operating earnings excluding depreciation and impairments including unrealised gain/(loss) on derivative contracts. 17
FINANCIAL INFORMATION The annual report for is expected to be published last week of April 2018. The report for the first quarter report 2018 (January March 2018) will be published on 23 May 2018. Annual general meeting 2018 is planned to be held in Stockholm on 23 May 2018. This report has not been subject to review by the auditors of the Company. 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 08:30 CET on 21 February 2018. 18