Matra Completes Workover Well in Sokolovskoe Field

Matra announced an update on operations in the Sokolovskoe Field, Russia.

The planned workover on well-12 was completed at the end of June by installing a production packer, with the intention of isolating the productive zones in the well. The well was returned to production by swabbing on July 2 and has been on production since that time. During this period the well has averaged 352 bpd with a water cut of around 42% (net 203 bopd).

Fluid loss from the annulus confirmed a leak in the casing/liner system, although installation of the production packer has not stopped water production as intended. Well-12 was drilled through the oil-water-contact ('OWC') and encountered various operational problems during drilling and side-tracking, making definitive analysis difficult. Well performance has been reduced by the presence of water in the tubing and the high viscosity of the resulting oil/water emulsion. At the current time, the source of the water has not been identified and the well will continue on production and to be monitored.

It is planned that future wells will be terminated above the OWC thereby facilitating good cement bonding and zone isolation. The independent study carried out last year by ERC/Equipoise concluded that the Company should encounter better reservoir to the north of the two existing wells where full development of subsurface reefs are expected.

Planning and approvals for the full field 3D seismic survey and the drilling of well-14 are continuing with both operations intended to commence later this year.

Matra's Managing Director, Peter Hind commented, "Well-12 continues to produce commercial quantities of oil and is generating cash flow. The well has also provided us with invaluable data on the structure of the Sokolovskoe Field. Given our improved knowledge from the data, the independently verified study of the field's potential and the forthcoming 3D seismic survey, we look forward to progressing with Well-14 later this year."


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