31 March 2008
Matra Petroleum plc ("Matra" or the "Company"): Operational Update – Hungary & Russia
Matra Petroleum plc (AIM:MTA), the oil and gas E&P company focused on Central Europe and Russia announces the following operational update in Hungary and Russia:
Hungary
 Final preparations for the two well drilling programme on the Inke Concession are underway. The first well Pamuk K-1 is expected to commence at the end of April/beginning of May utilising a rig provided by Rotary Drilling of Hungary. The second well Polany E-1 is expected to follow-on directly from Pamuk K-1. The wells will be drilled to 2000m and are expected to take approximately 20 days each to drill. The wells will test Pannonian sandstones that are highlighted by the Direct Hydrocarbon Indicator (DHI) modelling as potentially gas bearing.
Russia
Arkhangelovskoe -11: Drilling is continuing and has reached 3,323m. The well is targeting 5 horizons in the Devonian that should be encountered shortly.
Arkhangelovskoe –12: Due to the early onset of the annual thaw in Orenburg, access to the wellsite for heavy transport, including acid treatment equipment and road tankers, has been restricted for several weeks. There is a 6km section of non-metalled road providing access to well -12. Access, during the annual thaw, to this road is typically restricted for heavy transport for a period of up to a month. Historically the thaw has begun in mid-March but this year started several weeks early and has been compounded by the unusually high rainfall. Road repairs to allow equipment access for the acid treatment will take place as soon as the weather allows with the operation following shortly after.
Production from the well has remained steady at around 100 barrels per day. As access for road tankers was disrupted by the early thaw, production was restricted between 20th and 29th March due to onsite storage limitations. This period was utilised to replace the leased temporary production facility with a permanent installation. Export by road tanker has now recommenced..
Peter Hind, Matra's Managing Director said:
"With drilling starting shortly in Hungary and our continued drilling in Russia we are entering the busiest stage of our 2008 exploration programme. We look forward to reporting progress over the next few months.
Given the early thaw in Orenburg we took the decision to delay the acid treatment on well-12 and avoid the risk of getting heavy equipment stuck onsite and having to bear potentially significant extra costs. Once field development begins these access roads will be metalled to ensure continuous access."
Matra has a 40% interest in the Mezocsokonya Exploration License and in the Inke Concession. Horizon Hungarian Energy (HHE), a subsidiary of Aspect Holdings and a leading explorer in Hungary owns the remaining 60%.
Matra has a 100% interest in the Arkhangelovskoe License in Russia, held through its wholly owned Russian subsidiary.
For further Information, please contact:
Matra Petroleum
www.matrapetroleum.com
Peter Hind, Managing Director +44 (0) 7990 807855
Neil Hodgson, Exploration Director +44 (0) 7973 342822
Aquila Financial Limited
www.aquila-finacial.com
Peter Reilly +44 (0) 118 979 4100
Matra's nominated Advisor is
RFC Corporate Finance Ltd
Contact: Steve Allen +618 94802500
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press release [PDF, 36KB]
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