Matra Pumps Production in Russia

Matra announced that production has commenced from both existing wells in the Sokolovskoe Field, Russia.

Neither well has yet stabilized and as expected both will require acid stimulation and/or pump installation to maximize production rates. Well -13 is currently producing approximately 65 bopd and well-12 approximately 100-150bopd, although both well rates are fluctuating significantly and have not yet unloaded residual mud and completion fluids from the wellbore. In total over 2,000 bbls of oil have been produced from the wells and oil sales are being made on a regular basis.

Attempts to stabilize flow rates are being made before conducting the pressure surveys which will enable us to estimate the capability of the wells after acidization and/or pump installation. It is notable that neither well has yet produced any formation water.

Pressure surveys and analysis will occur during the next two weeks and a plan to maximize production rates will follow.

The weather in Orenburg has been a little unusual this year with some late heavy snowfalls which have delayed demobilization of the side-track rig. The main thaw has now begun and heavy load transportation will be limited during April whilst the snow melts and clears.

Matra's Managing Director, Peter Hind commented, "Well-12 side-track is producing at broadly similar rates to the original hole prior to acidising and the data from forthcoming pressure surveys should allow us to confirm the potential to improve production substantially. Whilst it is not possible to comment on ultimate production rates at this stage, the original well demonstrated an eight-to-ten fold improvement after acid.

"It is encouraging that the water appears to have been isolated, by remedial cementation, in well-13 and it was anticipated that this procedure would also damage the oil reservoir. Pressure data acquisition will again allow us to estimate likely rate improvements.

"We are currently planning to mobilize a coiled tubing unit to the well sites to ensure the proper clean up and to undertake acidization as appropriate. This work will commence once the road restrictions associated with the annual thaw are removed. Until that time data acquisition and oil production/sales will continue."

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