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Exploration Update

13th Dec 2006 07:01

Matra Petroleum PLC13 December 2006 PRESS RELEASE For immediate release: 13 December 2006 Matra Petroleum plc Matra Petroleum announces an exploration update December 2006 Following its announcement on 25 September 2006, Matra Petroleum plc (Matra) ispleased to announce an update to the exploration activities on its 100 per centowned Inke Concession in Hungary. As previously announced, work completed on the2D and 3D seismic data within the Inke Concession and the application of thelatest seismic imaging techniques has allowed Matra to define two prospects fordrilling in early 2007. Additionally the significant improvement in the quality achieved has provided aclear understanding of the depositional systems controlling reservoirdistribution and trap formation. This has enhanced the prospectivity of theblock, and together with the acquisition of new seismic in early 2007 isexpected to lead to further drilling towards the end of next year. The new 3D processing has enabled Matra to more clearly identify channel sands,and where these sands spill over the shelf edge, providing fan type sanddeposits and traps deeper in the basin. The existing 2-D seismic data (outside of the 3-D area) confirms examples ofthese fan sands draping over underlying highs to form simple anticlines andpinching out to form stratigraphic traps against older structural highs. Commenting on this recent activity Peter Hind, Matra's Managing Director said: "The work completed is an excellent example of applying the latest technology toexisting seismic data. Not only has it allowed us to identify two drillingtargets but it has also allowed us to upgrade the prospect inventory on the restof the block." "Together with the two-year extension to the concession granted earlier thisyear, this recent work has allowed us to develop a more aggressive explorationprogramme for 2007. Subject to exact rig availability, we expect to have starteddrilling again and to have acquired further seismic data by the end of the firstquarter of 2007 which will allow further drilling later in 2007." Details The Horvatkut-1 well, planned for early 2007, will appraise an existing gasdiscovery that tested gas from two horizons in the Somgysamson-3 well in 1983. Three potential reservoirs are targeted by this well. The targeted Main Sandtested gas at a rate of 1.27mmscfd in the Somgysamson-3 well (drilled by aprevious operator of the concession) but the reservoir was concluded, by theprevious operator, to be badly damaged and therefore potentially capable ofhigher rates. Additionally the improved seismic imaging shows that this sectionthickens in the direction of the proposed well location. Two tests in theVolcanics reservoir of Som-3 each tested gas at 0.27mmscfd and again theseintervals were concluded to be damaged. The Upper Sands appear on electric logsof previous wells as multiple thin stacked sands that may be gas bearing butwere not tested. The target horizons are predicted below 1500m and the well willbe drilled to a total depth of approximately 1800m. The application of the latest seismic imaging to define the potentially bestreservoir location combined with modern drilling techniques to minimiseformation damage and modern logging should combine to reduce the risksassociated with encountering a commercial gas reservoir. Marcali-1, Matra's second planned well, is located within a sand channel clearlyidentified by recent 3-D imaging and is within a mapped structure based on theremapped 3-D data. The Amplitude Variation with Offset (AVO) analysis of the 3Dshows a Direct Hydrocarbon Indicator (DHI) over this prospect. This techniquehas proved successful in many parts of the world. Whilst the presence of gas mayonly be demonstrated by drilling, this technique provides an example of howmodern seismic techniques may reduce exploration risks and may have significantimplications for the rest of the block. The target horizon is predicted atapproximately 1200m and the well will be drilled to a total depth ofapproximately 1350m. This review has provided for an updated inventory of prospects on the InkeConcession and has encouraged Matra to acquire further modern seismic in areaswithin the block but outside the existing 3-D area. The application of thetechniques used to define the next two drilling prospects within the 3-D areamay then be used to fully define and to reduce the risks associated with furtherdrilling. Figures associated with this release may be seen on the company's websitewww.matrapetroleum.com within the Investor Centre under Matra Documents. The information in this report that relates to technical matters has beencompiled and reviewed by Dr Neil Hodgson (BSc, PhD) Matra's Exploration Directora Petroleum Geologist with more than 20 years experience and who is a Fellow ofthe Geological Society and a member of the Petroleum Exploration Society ofGreat Britain (PESGB). Dr Hodgson has reviewed this announcement and theinformation contained therein. For further information, please contact: Matra Petroleum www.matrapetroleum.comPeter Hind, Managing Director +44 (0) 7990 807 855Neil Hodgson, Exploration Director +44 (0) 7973 342 822 Aquila Financial Limited www.aquila-financial.comPeter Reilly +44 (0) 20 7202 2601Ross Bethell +44 (0) 20 7202 2603 Notes to editors: Matra Petroleum plc is focussed on building a substantial oil and gas portfolioin Central Europe. Matra (formerly Ming Resources) was listed on AIM in 2005(AIM: MTA) but became active as an independent oil and gas exploration companyin April 2006 with the acquisition of a 100% operated interest in the InkeConcession in Hungary. This information is provided by RNS The company news service from the London Stock Exchange

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