The 2007 program consists of 2 wells and the acquisition of 150 sq kms of 3D seismic. The total program is estimated to cost $7.8 million, and drilling of the first well is expected to start by mid-June.
The first well is Horvatkut -1 and is an appraisal of an existing Miocene gas discovery drilled in 1983. Horvatkut will be drilled to a depth of 1750m and is expected to take 20 days and cost $2.3 million.
The drilling of the second well Marcali - 1 is expected to immediately follow Horvatkut -1. Marcali -1 will test a Miocene gas prospect where the Amplitude Variation with Offset (AVO) analysis shows a Direct Hydrocarbon Indicator (DHI) over this structure. The well will also drill a secondary oil target in the Triassic. Marcali - 1 will be drilled to a depth of 1690m and is expected to take 25 days and cost $2.5 million.
A 3-D seismic acquisition program will commence in June. Approximately 150 sq km of new data will be acquired in the north-eastern part of the concession where the 2006 studies revealed the presence of a new play fairway and several prospects. The acquisition and interpretation of this seismic is expected to lead to further drilling in late 2007 or early 2008. The seismic acquisition and processing program is estimated to cost $3.0 million.
Farm-out of Inke Concession
Matra has signed an agreement with Aspect International LLC (Aspect) to farm-out part of its interest in the Inke Concession.
Aspect International LLC is a subsidiary of Aspect Energy, a privately held US oil and gas company. Aspect Energy currently has oil and gas reserves estimated to be worth approximately US$1.89 billion. Aspect currently holds existing interests in 20,235 sq kms of license area in Hungary, through its subsidiary Hungarian Horizon Energy Ltd.
Under the terms of the deal Aspect will pay 100% of the first $5.5 million of the $7.8 million 2007 work program outlined above in order to earn a 60% interest in the Inke Concession. Thereafter Aspect will pay 60% and Matra 40% of ongoing costs. Matra's share of the $7.8 million program cost is therefore $920,000.
This transaction has been accomplished by the sale of 60% of the shares in Gemstone 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 accelerate the exploration program on the block beyond the current 2007 program. Having Aspect join our venture gives us access to their extensive knowledge of the area and allows us to fund an additional accelerated program.
"The combination of imminent drilling campaigns in Hungary and Russia highlights our strategy and makes 2007 a year of high potential for Matra."
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