18th Sep 2007 09:05
Matra Petroleum PLC18 September 2007 PRESS RELEASE For immediate release 18th September 2007 Matra Petroleum plc ("Matra" or the "Company") Matra Petroleum: Russian Drilling Update Matra Petroleum (AIM: MTA) announces that drilling on its Arkhangelovskoe -12well in Russia is progressing well and in line with the prognosed schedule,having reached 3045m earlier this morning. An intermediate logging run will bemade at 3100m prior to drilling into the target zones. These zones are expectedto be encountered below 3200m with the Aphoneski expected at 3675m. (TheAphoneski formation was tested down-dip on the adjacent block and is theformation evaluated by Senergy and referred to in the background informationbelow.) Due to the extensive requirements for coring and testing over these intervals itmay take up to a further 40 days to reach the total depth at 3900m when finallogging will be conducted. Matra has a 100% interest in the well and the Arkhangelovskoe License heldthrough its Russian subsidiary "OOO" Arkhangelovskoe. The information in this report that relates to technical matters has beencompiled by Dr Neil Hodgson (BSc, Phd) Matra's Exploration Director a PetroleumGeologist with more than 20 years experience and who is a Fellow of theGeological Society and a Member of the Petroleum Exploration Society of GreatBritain (PESGB) . For further Information, please contact: Matra Petroleum www.matrapetroleum.comPeter Hind, Managing Director +44 (0) 7990 807855Neil Hodgson, Exploration Director +44 (0) 7973 342822 Aquila Financial Limited www.aquila-financial.comPeter Reilly +44 (0) 207 7202 2601Yvonne Fraser +44 (0) 207 7202 2609 Matra's nominated Advisor is RFC Corporate Finance Ltd -Contact: Steve Allen +61894802500 Background to Arkhangelovskoe - 12 Arkhangelovskoe - 12 is the first well to be drilled on the ArkhangelovskoeLicense and Matra's first well in Russia. (NB. The well name and number isdesignated by the local authorities and is in not indicative of previousdrilling or ranking) The well will test the Sokolovskoe structure which was the subject of anindependent review by Senergy Ltd. (Senergy). The well is located up-dip fromthe 309 well (some 4 kms to the North and outside the Arkhangelovskoe License)which tested at 1850 BOPD. Senergy were asked to study the data on one of the five potential reservoirs ofthe Sokolovskoe prospect and they concluded that there was an 80% chance ofmaking a commercial oil discovery with the well and that there was a 40% chanceof discovering the most likely estimate of 32 mmbbls of prospective recoverableresources. Assuming an international oil price of US$ 50/bbl (current actual prices US$70-80/bbl) and a 10% discount rate Senergy assessed the Net Present Value to beUS$ 93 million and the Estimated Monetary Value (EMV or risked pre-drillvaluation) to be US$ 78 million. This review did not consider the other 4 potential reservoirs or the otheridentified structures on the License. In the event of a discovery, approval will be sought to allow test production atthe same time as applying for a 25-year exploitation license over the discoveryarea. Initial production may be achieved within a few months of well completionvia existing infrastructure. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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