Matrix Provides Exploration Update

Matrix's West Kambuna 1 exploration well has been drilled to a depth of 7,264 feet, which is just above its primary objective. Significant gas shows were reported from the secondary objective Baong Formation sandstones while drilling. Electric log evaluation of the section was not definitive and, as a result, a cased hole testing program will be conducted to determine the commercial significance of these shows. The top of these secondary objective Baong Formation sandstones, was intersected at a depth of 5,517 feet, some 40 feet below the pre-drill prognosis. The well is located in 106 feet of water, approximately 30 kilometers from the coastline of North Sumatra.

Operations have moved smoothly and quickly since the well was spudded on November 8, 2001 after the Sedco 601 semisubmersible drilling unit had relocated to the contract area following the completion of development activities at Matrix's nearby Langsa Technical Assistance Contract area. The well will next be drilled as an 8 ½" hole to test the primary Belumai Formation reservoir objectives, predicted to appear at a depth of 7,400 ft brt. The planned total depth for the well is 8,300 ft brt, or 150 feet into basement.

The primary targets of the well are the excellent quality Early Miocene reservoir sandstones that tested 14 million cubic feet of gas per day (MMCFGD) plus 990 barrels of condensate (BCPD) per day in the nearby Kambuna #1 discovery drilled by Bow Valley in 1986. West Kambuna 1 is located 4.5 km west southwest of Kambuna #1 and is designed to test a major seismically defined structural/stratigraphic trap that has been mapped as extending north and west from the Kambuna discovery.

Potential reserves in the prospect have been estimated as being 2 to 3 trillion cubic feet of gas plus 150 to 200 million barrels of liquids. The West Kambuna Prospect straddles the boundary between Matrix's 75% owned Asahan Offshore contract area and its 90% owned adjacent Glagah Kambuna contract area. Matrix is operator of both contract areas.