Matra Petroleum's Hungarian subsidiary has signed a contract with Rotary Drilling of Hungary for the drilling of two exploration wells on the Inke Concession in Hungary. Rotary drilling has confirmed the availability of its rig 42 at the completion of operations at its current location -- this is currently anticipated by mid-May.
The rig will be used to drill Pamuk-1 and Polany-1. These wells are located within the 2007 3-D seismic survey on the north eastern sector of the Concession. Pamuk-1 will be drilled to a depth of 2000m and is expected to take 20 days to drill and log. Polany -1 will be drilled to a depth of 1600m and is expected to take 18 days to drill and log. The total cost of the two well programme is $5 million gross ($2 million net to Matra).
Both prospects exhibit strong Direct Hydrocarbon Indicators (DHI's) based on modelling of the 2007 seismic survey.
At the Company's request Senergy conducted an independent review of the two prospects.
In addition Senergy indicated the possibility of an additional 3 stacked targets also identified separately by DHI's that are not included in the above volume estimate.
Chance of Success -- 28%
Both sets of economics assumed successful discovery, appraisal and development with first gas in mid 2009; a notional gas development using estimated capital and operating costs only; a constant gas price of $11/mcf; and an after tax NPV calculated at 10% discount rate.
Peter Hind, Matra's Managing Director said, "The combination of good fiscal terms in Hungary and the proximity to infrastructure means that discoveries of this size can have a significant impact for Matra. The Senergy report confirms our own view of the prospectivity of the Inke Concession."
Matra has a 40% interest in the Mezocsokonya Exploration License and in the Inke Concession.
The information in this release that relates to technical matters has been provided by Senergy Limited and reviewed by Dr Neil Hodgson (BSC, PhD) Matra's Exploration Director, a Petroleum Geologist with more than 20 years experience and who is a Fellow of the Geological Society and a member of the Petroleum Exploration Society of Great Britain (PESGB).
Estimates of Prospective Resources have been made in accordance with Society of Petroleum Engineers (SPE) definitions.
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