Interim Results

10th August 2011

Matra Petroleum plc

Interim Results

Matra Petroleum plc ("Matra" or the "Company"), an independent oil and gas exploration and production company with operations in Russia, today announces its results for the six month period ending 30 June 2011.

Highlights

Operational

·; Production and sales of oil achieved from both A-12 and A-13 wells

·; The reservoir quality confirmed at well A-12 (side-track) supports the likelihood of robust economics for the overall development of the Sokolovskoe Field

Financial

·; Placing to raise £1.55m completed in February 2011

·; Cash and cash equivalents totalling €1.27 million at the period end

Outlook

·; 3D seismic survey to be carried out across the entire field

·; Plans for further appraisal and development starting with well A-14

Peter Hind, Managing Director of Matra Petroleum commented:

"Significant progress was made in the first half of 2011 with confirmation of a high quality reservoir following the drilling of well A-12 sidetrack. We look forward to the next stage of development with the drilling of well A-14 later this year which we expect to further improve the commerciality of the field."

Extracts from the interim results appear below and a full version is available on the Company's website www.matrapetroleum.com

Enquiries:

MANAGING DIRECTOR'S STATEMENT

Dear Shareholder,

On behalf of the Board, I am pleased to present the Interim Results of Matra Petroleum plc for the six months ended 30 June 2011.

The first half of 2011 has seen production and sales of oil from both A-12 and A-13 wells. A-13 produced a total of 3,765 bbls without significant water production. Although the daily rate was modest, the production rate is expected to be improved when a down-hole pump is installed. The success of the cement squeeze in this well supports the conclusion that cementing problems are the main cause of water influx. The well is currently shut-in and in order to resume production, some surface production equipment will need to be installed onsite and a down-hole pump installed. The directors believe this will generate a positive cash flow after the deduction of production taxes and other costs.

Well-12 has shown that it is capable of producing at an initial oil rate of around 1,000 bpd but continues to be affected by water production. The reservoir quality encountered at well A-12 supports robust economics for the overall development of the Sokolovskoe Field. An attempt to shut-off water using a production packer was, however, unsuccessful. At the time of reporting, an independent technical data review is in progress to assess the viability of further remedial action on well A-12 to shut-off water. Once this review is complete a decision on the future of the well will be taken.

It should be remembered that well A-12 is drilled on the flank of the field and the well penetrated the oil-water-contact ("OWC"). Drilling in the main part of the field is expected to encounter thicker and more porous reservoir sections further up from the OWC. Furthermore a drilling programme designed specifically for production wells will be utilised thereby minimising operational risks.

The most important factor relating to the field's further appraisal and development will be result of the next well, A-14. This well will be drilled to test the presence of "Patch Reefs" (predicted areas of better reservoir characteristics) to the North of existing wells. The directors believe that success at this well is likely to improve the value of the field and the Company's ability to accelerate production. The approval process for such drilling has recently changed so as to require additional environmental and ecological studies to be completed and this work is in progress.

I look forward to providing further updates throughout the second half of 2011.

Peter Hind

Managing Director

9 August 2011INDEPENDENT REVIEW REPORT

FOR THE PERIOD ENDED 30 JUNE 2011

INDEPENDENT REVIEW REPORT TO MATRA PETROLEUM PLC

Introduction

We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2011 which comprises the Condensed Consolidated Income Statement, the Condensed Consolidated Statement of Comprehensive Income, the Condensed Consolidated Statement of Changes in Equity, the Condensed Consolidated Balance Sheet, the Condensed Consolidated Statement of Cash Flow and related notes.

We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

Directors' responsibilities

The interim report, including the financial information contained therein, is the responsibility of and has been approved by the directors. The directors are responsible for preparing the interim report in accordance with the rules of the London Stock Exchange for companies trading securities on Alternative Investment Market which require that the half-yearly report be presented and prepared in a form consistent with that which will be adopted in the company's annual accounts having regard to the accounting standards applicable to such annual accounts.

Our responsibility

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Our report has been prepared in accordance with the terms of our engagement to assist the company in meeting the requirements of the rules of the London Stock Exchange for companies trading securities on AIM and for no other purpose. No person is entitled to rely on this report unless such a person is a person entitled to rely upon this report by virtue of and for the purpose of our terms of engagement or has been expressly authorised to do so by our prior written consent. Save as above, we do not accept responsibility for this report to any other person or for any other purpose and we hereby expressly disclaim any and all such liability

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, ''Review of Interim Financial Information Performed by the Independent Auditor of the Entity'', issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2011 is not prepared, in all material respects, in accordance with the rules of the London Stock Exchange for companies trading securities on Alternative Investment Markets.

BDO LLP

Chartered Accountants and Registered Auditors

London

United Kingdom

9 August 2011

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

CONDENSED CONSOLIDATED INCOME STATEMENT

FOR THE PERIOD ENDED 30 JUNE 2011

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 30 JUNE 2011

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 JUNE 2011

CONDENSED CONSOLIDATED BALANCE SHEET

AS AT 30 JUNE 2011

The financial statements are approved and authorised for issue by the Board on 9 August 2011.

Peter Hind

Managing DirectorCONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

FOR THE PERIOD ENDED 30 JUNE 2011

NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 JUNE 2011

1. Accounting policies

The financial information set out in this report is based on the consolidated financial statements of Matra Petroleum plc and its subsidiary companies (together referred to as the 'Group'). The accounts of the Group of the 6 months ended 30 June 2011 were approved and authorised for issue by the Board on 9 August 2011. The interim results have not been audited, but were the subject of an independent review carried out by the Company's auditors, BDO LLP. Such unaudited results do not constitute statutory accounts of the Company or the Group. These accounts have been prepared in accordance with the accounting policies that are expected to be applied in the Report and Accounts of Matra Petroleum plc for the year ended 31 December 2011 and are consistent with IFRS as adopted by the European Union. The financial information for the year ended 31 December 2010 does not constitute the full statutory accounts for that period. The Annual Report and Financial Statements for 2010 have been filed with the Registrar of Companies. The Independent Auditors' Report and Financial Statements for 2010 was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

The unaudited condensed consolidated financial statements incorporate the results of Matra Petroleum plc and its subsidiaries undertakings as at 30 June 2011. The corresponding amounts are for the year ended 31 December 2010 and the 6 month period ended 30 June 2010.

Based upon cash flow projections the Directors are of the view that the Group has sufficient cash to fund overheads and the planned work programme for the next 12 months.

NOTES TO THE UNAUDITED CONDENSED FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 30 JUNE 2011

2. Loss per share

Basic loss per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of Ordinary Shares outstanding during the period.

The effect of all potential ordinary shares arising from the exercise of options is not dilutive and therefore diluted earnings per share has not been calculated. At the balance sheet date there were 52,400,000 (30 June 2010: 52,200,000; 31 December 2010: 52,400,000) potentially dilutive shares.

3. Interim report

Copies of this interim report for the six months ended 30 June 2011 will be available from the offices of Matra Petroleum plc, 120 Bridge Road, Chertsey, Surrey, KT16 8LA, United Kingdom and on the company's website www.matrapetroleum.com.