4th Jun 2007 07:00
Matra Petroleum PLC04 June 2007 PRESS RELEASE For immediate release: 4th June 2007Matra Petroleum plc ("Matra" or the "Company") Matra updates Hungary programme and announces farm-out. 2007 Hungary Exploration Programme Matra's wholly owned Hungarian subsidiary has signed a contract with locallybased drilling contractor Rotary Drilling Company Ltd for its rig 42 for theforthcoming programme in the Inke Concession in Hungary. The 2007 programme consists of 2 wells and the acquisition of 150 sq kms of 3Dseismic. The total programme is estimated to cost $7.8 million and drilling ofthe first well is expected to start by mid-June. The first well is Horvatkut -1 and is an appraisal of an existing Miocene gasdiscovery drilled in 1983. Horvatkut will be drilled to a depth of 1750m and isexpected to take 20 days and cost $2.3 million. The drilling of the second well Marcali - 1 is expected to immediately followHorvatkut -1. Marcali -1 will test a Miocene gas prospect where the AmplitudeVariation with Offset (AVO) analysis shows a Direct Hydrocarbon Indicator (DHI)over this structure. The well will also drill a secondary oil target in theTriassic. Marcali - 1 will be drilled to a depth of 1690m and is expected totake 25 days and cost $2.5 million. A 3-D seismic acquisition programme will commence in June. Approximately 150 sqkm of new data will be acquired in the north-eastern part of the concessionwhere the 2006 studies revealed the presence of a new play fairway and severalprospects. The acquisition and interpretation of this seismic is expected tolead to further drilling in late 2007 or early 2008. The seismic acquisition andprocessing programme is estimated to cost $3.0 million. Farm-out of Inke Concession Matra is pleased to announce that it has signed an agreement with AspectInternational LLC (Aspect) to farm-out part of its interest in the InkeConcession. Aspect International LLC is a subsidiary of Aspect Energy, a privately held USoil and gas company. Aspect Energy currently has oil and gas reserves estimatedto be worth approximately US$1.89 billion. Aspect currently holds existinginterests in 20,235 sq kms of license area in Hungary, through its subsidiaryHungarian Horizon Energy Ltd. Under the terms of the deal Aspect will pay 100% of the first $5.5 million ofthe $7.8 million 2007 work programme outlined above in order to earn a 60%interest in the Inke Concession. Thereafter Aspect will pay 60% and Matra 40% ofongoing costs. Matra's share of the $7.8 million programme cost is therefore$920,000. This transaction has been accomplished by the sale of 60% of the shares inGemstone Ltd, the Matra subsidiary that owns the rights to the Inke Concession. Matra's Managing Director, Peter Hind said: "Given the size and potential of the Inke Concession we are keen to acceleratethe exploration programme on the block beyond the current 2007 programme. HavingAspect join our venture gives us access to their extensive knowledge of the areaand allows us to fund an additional accelerated programme. The combination of imminent drilling campaigns in Hungary and Russia highlightsour strategy and makes 2007 a year of high potential for Matra." For further information, please contact: Matra Petroleum www.matrapetroleum.comPeter Hind, Managing Director +44 (0) 7990 807 855 Aquila Financial Limited www.aquila-financial.comPeter Reilly +44 (0) 20 7202 2601Yvonne Fraser +44 (0) 20 7202 2609 Matra's nominated Advisor is RFC Corporate Finance Ltd -Contact: Steve Allen +61894802500 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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