Operations Recommenced at Matra's Russian Well-12

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

The additional data acquisition on Well-12, as recommended by the Gaffney Cline review has been completed. The well temporarily produced under gas lifting with Nitrogen and a series of production logs and pressure surveys have been acquired.

We have undertaken a detailed review of the data acquired. We are pleased to report that the pressure data showed that the reservoir recovered to its initial pressure and showed no signs of depletion. The data also showed signs of pressure support from another (water) zone.

Analysis of the production logs showed indications of water influx from behind the liner possibly from the higher Franski zone that is a known water bearing reservoir in this well.

As a result of this the workover rig has recommenced operations and is currently undertaking preparatory works before setting a plug and perforating the liner to ascertain if a remedial squeeze cementation on the liner section, between the Franski water bearing zone and the Aphonenski oil reservoir, is possible.

A further announcement will be made once this work is complete.

Managing Director, Peter Hind commented, "Progress has been made on resolving the issues around Well-12 and this has allowed us to recommence operations with the workover rig.

"Separately, we continue to move forward with our plans to drill Well-14 and commission a 3D seismic survey. We are currently considering a number of financing options, with the best interests of shareholders in mind."