Peter Hind, Matra's Managing Director issued the following statement:
"In 2006 we were able to lay the groundwork for the 2007 exploration program. We completed the detailed technical work on the Inke Concession in Hungary and reviewed a number of new opportunities, particularly in Russia.
We are delighted that the first exploration well, Horvatkut-1, of the two well 2007 drilling program on the Inke Concession in Hungary discovered gas. The second well on the Inke Concession, Marcali-1, is progressing on schedule.
The Horvatkut-1 well test results were better than our pre-drill expectations and have confirmed the benefit of the hi-tech seismic reprocessing completed last year. Further testing of this well will confirm the relative contributions of each producing zone and quantify the condensate production seen on the original test. The schedule for this testing will be confirmed once the current drilling program is completed. Our pre-drill evaluations indicated an economic threshold of 1.5-2 mmscfd, whereas the test data indicates that the well is capable of producing in excess of 6 mmscfd under normal conditions.
Further data acquisition from this field and the result of nearby Marcali-1 will assist us greatly in pursuing the optimum development case for this discovery.
Also in Hungary, the 2007 Inke seismic acquisition program is underway. We currently expect that this seismic acquisition and the results of the current drilling program will lead to further drilling in Inke at the end of this year or early in 2008.
Our review of Russian opportunities led us to make the acquisition of our Russian subsidiary "OOO" Arkhangelovskoe where we recently began drilling our first exploration well. Drilling of this potentially "high impact" well is on schedule and currently the well is at 650m.
Our current plan is to begin the second and third wells on this license during 2007.
We are also continuing to evaluate new opportunities, mainly in Orenburg but also in other Oblasts within the region and Hungary.
We now have an operating office in Orenburg, Russia as well as in Budapest and our headquarters in Chertsey. Our Board has been strengthened with the addition of Gideon Tadmor of Delek as a non-executive Director.
We have made enormous progress over the last 12 months and it is gratifying to see our technical strategy delivering success.
Such progress has only been possible through the dedicated efforts of our staff and consultants in all three countries and I look forward to reporting our continued progress during the remainder in 2007."
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