Matra Petroleum AB - Matra Petroleum AB: Fourth quarter and twelve months ended 31 December 2017

Fourth quarter ended 31 December 2017 (Fourth quarter ended 31 December 2016)

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 2017 (Twelve months ended 31 December 2016)

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, 2017
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)

	Fourth quarter 2017	Fourth quarter 2016	Twelve months 2017	Twelve months 2016
	Fourth quarter 2017	Fourth quarter 2016	Twelve months 2017	Twelve months 2016
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

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 2017, 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, 2017 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 2017, 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 2017.

Quarterly EBITDA further improved from the third quarter 2017 and the fourth quarter 2016. 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

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

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.

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).