Matrix IPO to raise $3.5m, change name after Emerald deal

West Perth-based Matrix Oil NL has issued a prospectus to raise $3.5 million pursuant to a public offer and up to $500,000 in a pro rata offer to existing shareholders.

The oil and gas explorer and producer has entered into an agreement to acquire Emerald Gas Ltd, which has interests in drill ready on-shore oil and gas projects in USA and Australia.

Following completion of the offers and the approval by shareholders of the acquisition of Emerald, Matrix will be renamed Emerald Oil and Gas NL.

The focus of the company will be on its US oil and gas interests offering investors immediate exposure to drill programs in the US domestic gas sector.

The Shareholder Offer closes at 5.00p.m. (Perth time) on 29 April 2006 and the Public Offer closes at 5.00p.m. (Perth time) on 18 May 2006 or such other date as the Directors determine.

The offer has been open since 6 April.

Below is an announcement from Emerald Oil and Gas NL Executive Director - Finance (proposed) John Hannaford:

I am pleased to advise that Matrix Oil NL (to be renamed Emerald Oil & gas NL) has lodged a prospectus dated March 29, 2006 ("Prospectus") with the Australian Securities and Investment Commission (ASIC) and the offer has been open from April 6, 2006.

Upon acquiring Emerald Gas Ltd ("Emerald"), Matrix will focus on exploration & development at Emerald's USA and Australian oil & gas projects, with drilling planned within the first few months of listing. I am a founder and Director of Emerald Gas and will be appointed as Executive Director - Finance following completion of the merger.

Under the prospectus the Company is raising up to $3.5 million by the issue of up to 17.5 million shares at 20 cents, each with a 1 for 1 attaching free 20 cent option exercisable within 2 years. Please mark your application form "DIR-JH" in the "Adviser Code" box in the top right hand corner, to ensure you form part of the Directors' allocation.

Please read the prospectus in its entirety and complete and return the application form (along with application funds) to Montagu Stockbrokers in accordance with the instructions provided on the second page of the application form (back of the form). The offer of Emerald's fully paid shares and accompanying options is made in the prospectus. Anyone wishing to purchase such shares will need to complete the application form accompanying the prospectus (pages 111-112 or 113-114).

Please give me an early indication if possible of your level of interest by return email so we can ensure your allocation, and whether or not you would like to receive a hard copy of the prospectus.

Should you wish to discuss the Company, its projects or the prospectus, please call me on 61-8-9482-0510, or by email at jhannaford@emeraldoilandgas.com